Home buyers put 24 per cent down, borrow rest Skip to content

Home buyers put 24 per cent down, borrow rest

According to a new Gallup survey conducted for Íslandsbanki, in the first three months of the year home buyers received housing loans to the average extent of 76 per cent of property price.

Iceland State Radio, RÚV, reports that 40 per cent of respondents received housing loans of 90-100 per cent of the market value of the property. Six per cent of respondents said that they did not take a loan. 60 per cent of respondents in the 18 – 24 year old age group took 90 – 100 per cent loans compared to 40 per cent of the respondents in the 25 – 34 year old age group.

Three of every four respondents expects housing prices to go up in the next twelve months while 25 per cent of house buyers believe prices will coast. Only one person of the 653 respondents expects housing prices to drop.

The results also indicate that buyers make increasing use of borrowed funds in the lower end of the market.

The poll, conducted in late May to beginning of June, was made by Gallup for the daily Fréttablaðið. It included 1300 people of which 56 per cent responded.

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