Lithuania's housing loan sector is experiencing significant changes that are shaping a new borrowing culture. Since new real estate credit regulation requirements took effect in May, loan applicants have become notably more active in considering their interest rate options. The legislative amendment that came into force in May fundamentally transforms the housing loan provision process. Major credit providers are now required to present both interest rate options to each client: variable and…

Lithuanians acquire their first home with a loan before major life changes: the birth of children or at least their growth to the need for their own room, career changes. Last year, loans were most often chosen by people aged 26-30 and 31-35, representing 27 percent and 26 percent of all applications respectively. Combining respondents, the group from 26 to 35 years old makes up more than half of all applicants. Such data is revealed by "Bigbank" data.

Lithuanians pay higher interest rates to the country's banks for housing loans than in most eurozone countries. According to ECB data, in our country they amount to as much as 1.89 percent, while in France - 0.72 percent, and in nearby Finland and Sweden - 0.75 and 0.88 percent respectively. Thus, Lithuanian housing loans are significantly more expensive.

While 25 thousand companies in the country have loans, the overall lending level remains one of the lowest in the European Union. Experts point out that many companies' loan applications are rejected, so they don't even overcome the first step in obtaining a loan.