Andorra Mortgage Lending Surges 38% to 832M Euros in 2025

New mortgage lending in Andorra increased 38.4% in 2025 compared to the prior year, totaling 1,064 loans valued at 831.7 million euros, per Department of Statistics figures.

Residential mortgages for primary or secondary homes drove the rise, climbing 37.5% to 961 loans with an average value of 401,591 euros—20% above 2024's 334,102 euros. Monthly payments on these averaged 1,394 euros. Canillo topped the list with 182 loans, followed by La Massana (169), Encamp (166), and Escaldes-Engordany (164). Loan volumes rose in all parishes except Andorra la Vella, down 17.3%. In value terms, Andorra la Vella led residential lending at nearly 191 million euros, while Escaldes-Engordany saw the biggest jump at 184%.

Across all property types, average loan sizes grew 46.1% to 781,640 euros from 535,151 euros, lifting average monthly payments to 2,255 euros. Non-residential loans—for hotels, commercial spaces, developments, and land—rose 47.1% to 445.7 million euros. Total mortgage values doubled by 102.1% year-on-year, with residential values up 65.3%. The average interest rate on outstanding mortgages was 3.7795%, with 13.35 years left to maturity.

Nationals took 90.3% of loans (961), versus 9.7% for non-residents (103). Borrowers averaged 40.2 years old.

The government's first-home program has aided eight families through deals from December 2025 to February 2026, backing 3.259 million euros in mortgages up to 600,000 euros for primary residences. It covered 463,921 euros (or 463,925 euros per some reports) in interest over the initial seven years, with individual guarantees of 570,000, 478,000, 395,000, 390,000, 387,000, 384,000, 365,000, and 290,000 euros. Early payments apply fully to principal; from year eight, variable rates use 12-month Euribor plus 0.50%, capped at 33% of income over 20-50 years without exceeding age 80 at end. Eligibility requires seven years' continuous legal residency (at least one applicant per household), no other properties anywhere, net worth under 30% of home value, income at least double the minimum wage, and no public debts. Banks assess solvency before referral to the National Housing Institute for approval, followed by notarial signing among buyer, bank, and government. The program covers 100% of financing—including the typical 20% banks avoid—for seven years while handling all interest.