Dutch banks increase mortgage lending as market recovers
Banks in the Netherlands have significantly increased their mortgage lending after a period of slowdown, according to the Dutch Central Bank (De Nederlandsche Bank, DNB). The total outstanding mortgage loans reached 611 billion euros in June, marking a more than 5 percent rise compared to the previous year, BNR reports.
On average, mortgage lending grew by 2.9 billion euros per month this year, a pace of growth not seen since 2008. The rebound follows a period of fluctuation over recent years, driven by changes in interest rates and economic conditions.
DNB explained in a statement Monday that mortgage growth surged strongly from 2021 due to historically low fixed mortgage rates. However, as the European Central Bank (ECB) increased interest rates starting mid-2022, mortgage lending declined until early 2024. Over the past year, with the ECB lowering rates in the eurozone, the mortgage market has reportedly regained momentum.
Loans with fixed interest terms between five and ten years have been particularly popular among borrowers, according to DNB.
The growth of mortgage lending in the Netherlands outpaces the eurozone average. DNB attributes this to a combination of factors: a rising number of home sales, stronger wage growth, and faster increases in house prices in the Netherlands compared to other eurozone countries.
