Strongest increase in mortgage debt since 2007

Mortgage debt in the Netherlands increased by 10.9 billion euros on a quarterly basis during the third quarter of this year. This represents the strongest increase since the third quarter of 2007. A total of 775.6 billion euros in mortgages is now outstanding, Statistics Netherlands (CBS) calculated.

Because the economy grew faster than home mortgages, debt as a percentage of gross domestic product actually fell. It decreased from 92.7 percent in the second quarter of this year to 92.2 percent in the third quarter.

Household incomes also rose higher, according to the national statistics bureau. Household real disposable income was 2.9 percent higher in the third quarter of this year than twelve months ago. The increase is mainly due to higher wages for employees. The CBS made the calculation by adjusting earnings for inflation to determine what people can buy for their money.

Total employee compensation grew by 4.8 percent. The number of jobs was also 3 percent higher, and the number of working hours grew by 4.3 percent. Collective labor agreement wage increases totaled 1.9 percent.

Statistics Netherlands also noted an increase in the total amount of social benefits received, mainly due to the fact that more AOW state pension benefits were paid out. Furthermore, the amount of social provisions was higher, mainly because more student grants were received. Households also paid 3.7 percent more in taxes and social security contributions.