Dutch Mortgage portfolio

Traditionally, the three largest banks in the Netherlands have a large market share. In recent years, their market share has decreased strongly to 50-55% of the yearly mortgage production. The other 45-50% is provided by a variety of different mortgage providers, including insurance companies, pension funds, small banks and foreign investors that have generated a large market share in a relatively short period.

From an international perspective, the Dutch mortgage portfolio has unique characteristics. Compared to most European countries, Dutch mortgages have high loan-to-value (around 81% at origination). Loan-to-income ratios are around 3.8. LTI limits are determined by the National Institute for Family Finance (NIBUD), thereby protecting households from excessive lending.

Meanwhile, default rates and the number of foreclosures are at an international low. In addition, there is a government-backed guarantee fund for mortgages up to €245,000 - a certain amount that protects banks against default and minimises risks. Mortgage providers are aided in risk assessment by the Bureau of Credit Registration (BKR). The BKR registers loans, arrears and defaults and can be accessed by mortgage providers.

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LTV, LTI and risk

Dutch mortgages have relatively high LTV and LTI ratios. Meanwhile, the payment morale of Dutch households is very high, resulting in internationally low default rates.


The National Mortgage Guarantee (NHG) is provided by the Homeownership Guarantee fund and acts as government-backed guarantee fund.

Properties of a Dutch mortgage

Dutch mortgages typically have a duration of 30 years. During these 30 years, the interest rate can be fixed.