OREANDA-NEWS. January 10, 2013. In the past half-year, the 6-month Euribor has dropped 130 basis points, or by as much as 80%. Taking into account the current average outstanding home loan balance – EUR 37 143 – the average home loan holder will save a total of EUR 480 per year or EUR 40 per month on the drop in the base rate.

At the end of 2011, there were nearly 157 100 home loans in Estonia.
Taking into account the change in the 6-month Euribor (30.12.2011 1.617% and 28.12.2012 0.320%), 12 months later the savings on all of those loans is approximately EUR 6.3 million per month in credit costs.

In 2012, the 6-month average Euribor turned out to be nearly half of what it was in 2011. If the Euribor was slightly over 1.6% in 2011, then in 2012 it was a bit over 0.8%.

The average base interest rate reducing by a half means a much smaller income tax refund on housing loan interest, in comparison with 2011, for the state and a family with a home loan,” commented Triin Messimas, Development Manager of Private Loans at SEB.