Mortgages more expensive as 15 Dutch lenders hike interest rates this week
Bad news for homebuyers in the Netherlands. The war in the Middle East is pushing mortgage interest rates higher. At least 15 Dutch lenders, including ING, ABN Amro, and Rabobank, are hiking their rates this week, De Telegraaf reports.
Due to the war in Iran, interest rates on the capital markets are rising worldwide. Dutch government bonds also became significantly more expensive, with the highest interest rate since 2011. Banks are now also raising their interest rates, spokesperson Martin Hagedoorn of the mortgage advisor De Hypotheekshop, told the newspaper.
“Normally, Rabobank has Monday as its fixed day for interest rate adjustments. Now they are doing it as early as Wednesday. That indicates that they really have to do it,” he said. "We are currently seeing mortgage interest rate increases from lenders pouring in. There are about 15 increases scheduled for the coming days."
De Hypotheekshop expects mortgage interest rate increases to continue for “certainly a week or two.”
Mortgage advisors are noticing an increase in applications as people try to quickly lock in their interest rates before they rise again. First-time buyers and people moving from one owner-occupied home to another, in particular, are acting at the moment. Higher interest rates not only mean higher monthly payments, but also affect how much people can afford to borrow.
This will ultimately also impact home prices, ING economist Sander Burgers told the newspaper. “We expect house prices to have remained roughly stable by the end of this year. One reason is that the higher mortgage interest rates affect borrowing capacity and the affordability of homes.”
Early this month, ING predicted that home prices in the Netherlands would increase by 1.5 percent in 2026, mostly due to price increases at the start of the year. Home prices will not climb any further for the rest of the year, the bank said.
