Lombardy Mortgage Trends: Average Loan Amounts and Regional Market Shifts

The average mortgage request in Lombardy reached approximately 151,570 euros during the first five months of 2024, reflecting a 2.3% increase compared to the previous year, according to data from the Facile.it – Mutui.it Observatory. While Milan maintains the highest demand for financing at 171,680 euros, regional trends indicate a shift toward younger borrowers and a growing interest in variable-rate products as the European Central Bank (ECB) navigates ongoing monetary policy adjustments.

How Mortgage Requests Vary Across Lombardy

Regional data highlights a clear divide in borrowing power across Lombardy’s provinces. Milan leads the region with an average requested amount of 171,680 euros, significantly outpacing other areas. Following the regional capital, the provinces of Monza and Brianza (145,615 euros), Brescia (145,058 euros), and Como (144,992 euros) represent the middle tier of the market.

At the lower end of the spectrum, Pavia and Cremona recorded the most modest average requests, both falling just under 120,000 euros. Lecco, with an average request of 138,328 euros, sits in the lower-middle range of the regional rankings. These figures, tracked by the Facile.it observatory, provide a snapshot of property valuation disparities and local purchasing power across the territory.

Demographic Shifts and Borrower Behavior

The profile of the average mortgage applicant in Lombardy is changing. During the first five months of 2024, the average age of borrowers dropped to 38 years, down from over 39.5 years during the same period in 2023. This trend suggests a potential resurgence of younger buyers entering the market, despite the challenging interest rate environment.

While fixed-rate mortgages remain the preferred choice for the majority of lombard borrowers, there has been a notable uptick in interest for variable and mixed-rate products. Data shows that the share of these alternative products rose to 8.4% of total requests, a significant jump from less than 1% recorded twelve months prior. This shift indicates that some borrowers are hedging their bets against long-term fixed commitments in anticipation of future ECB rate fluctuations.

Market Stability Amidst ECB Policy

The average value of properties mortgaged in Lombardy has remained stable, holding at approximately 226,448 euros. This stability in collateral value serves as a buffer in the regional housing market, even as analysts question whether recent ECB interest rate hikes will dampen demand in the second half of the year.

The European Central Bank’s recent policy decisions remain the primary variable for prospective homeowners. Higher borrowing costs typically exert downward pressure on the total volume of new mortgages. However, the sustained demand observed in the first five months of 2024 suggests that despite the cost of credit, the underlying need for housing continues to drive activity in the Lombardy real estate sector.

Regional Mortgage Data Overview

*Note: Data reflects reports compiled by the Facile.it – Mutui.it Observatory for the period January–May 2024.*