In 2024 Q4, household credit demand was approximately unchanged, and banks expect approximately unchanged demand in 2025 Q1. Banks expect a slight easing of credit standards for first-home mortgages as a result of changes to the Lending Regulations. Demand for fixed-rate loans increased slightly, after a significant increase in Q3. Firms reported a slight increase in credit demand in Q4, and a slight increase is also expected in Q1. Banks report somewhat lower lending rates and lending spreads on corporate loans than expected in Q4 and somewhat stronger competition for corporate loans.

Households¹

Overall, banks reported that residential mortgage demand was approximately unchanged in 2024 Q4 (Chart 1). Demand for fixed-rate loans increased slightly, after a significant increase in Q3. Banks expect overall residential mortgage demand to be approximately unchanged in 2025 Q1 (Chart 2) but expect demand for first-home mortgages to rise slightly. Demand for fixed-rate loans is expected to decline a little in Q1.

Credit standards and the use of interest-only periods for households were broadly unchanged in 2024 Q4. Banks expect broadly unchanged credit standards in 2025 Q1, while they expect a slight easing of credit standards for first-home mortgages (Chart 1). Most banks refer to the changes to the Lending Regulations as a key factor in the change to credit standards. The use of interest-only periods is expected to remain approximately unchanged in Q1.

Chart 1 Overall residential mortgage demand, credit standards and lending spreads

Overall residential mortgage demand, credit standards and lending spreads

Chart 2 Household residential mortgage demand

Household residential mortgage demand

Overall, banks reported approximately unchanged funding costs and mortgage lending rates, and they expect approximately no change in 2025 Q1 (Chart 3). Lending spreads were broadly unchanged in Q4, and banks expect no change in Q1. In Q4, banks reported slightly stronger competition, and they expect this to continue in Q1.

Chart 3 Banks’ operating environment, lending rates and lending spreads. Residential mortgage loans

Banks’ operating environment, lending rates and lending spreads. Residential mortgage loans

Corporates²

For non-financial corporates, banks as a whole reported a slight increase in credit demand in 2024 Q4 (Chart 4). Credit line utilisation was broadly unchanged, and the same applies to demand for fixed-rate loans. Demand for commercial real estate (CRE) loans increased slightly in Q4 after remaining approximately unchanged in both Q2 and Q3. In 2025 Q1, banks expect a slight increase in credit demand from both non-financial corporates overall and CRE firms. Banks expect credit line utilisation and demand for fixed-rate loans to remain broadly unchanged.

Overall, banks report no change to credit standards in Q4 and expect credit standards to remain unchanged in Q1. Credit standards for CRE firms were also approximately unchanged, and banks, also here, expect no change in credit standards in Q1.

Chart 4 Credit demand, credit standards and lending spreads. Lending to non-financial corporates

Credit demand, credit standards and lending spreads. Lending to non-financial corporates

Banks’ funding costs on lending to non-financial corporates were approximately unchanged in Q4, while lending rates fell somewhat and more than expected in Q3 (Chart 5). In 2025 Q1, banks expect both funding costs and lending rates to edge down. In addition, banks’ overall lending spreads decreased somewhat in Q4, and banks expect that spreads will edge down in Q1.

In Q4, banks reported somewhat stronger competition for corporate loans, stronger than in Q2 and Q3, and they expect competition to increase slightly in 2025 Q1.

Chart 5 Banks’ operating environment, lending rates and lending spreads. Lending to non-financial corporates

Banks’ operating environment, lending rates and lending spreads. Lending to non-financial corporates

[1] Changes to the Norwegian retail banking market have led to an adjustment in the sample of banks participating in the Lending Survey with effect from 2024 Q4.

[2] Mergers in the Norwegian banking market have led to an adjustment in the sample of banks participating in the Lending Survey with effect from 2024 Q4.