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Investing in mortgages

Mortgage lending and funding by domestic parties have been constrained. A growing demand for mortgages offers interesting opportunities for foreign investors. According to the Dutch Central Bank a larger role of foreign market parties in the mortgage funding market will support diversification and competition.

Source: DNBullitin: opkomst nieuwe aanbieders in kredietmarkten gunstig voor financieel stelsel, 29 november 2016.

Facts and figures

The Dutch mortgage credit market has a total volume of 658 billion Euros with a mortgage production of about 63 billion Euros in 2015. The average mortgage amount is about 245,000 Euros.

Dutch Mortgage portfolio

There is a wide variety of mortgage providers in the Dutch market. From an international perspective, the Dutch mortgage portfolio has unique characteristics.

Market regulation

The market for mortgages is regulated by several key governmental players. In addition, the mortgage credit market has also imposed self-regulation.

Mortgage distribution

Entry to the mortgage credit market is facilitated by a large network of independent mortgage intermediaries.

Fiscal home ownership

There is an elaborate tax system in place affecting home ownership and home financing.

Investment opportunities

Yields on Dutch mortgages are high considering their low risk profile.