Dutch mortgage applications surge in January

The number of mortgage applications in the Netherlands rose sharply in January, driven by anticipated interest rate hikes, according to data from Hypotheken Data Netwerk (HDN). A total of 47,108 mortgage applications were submitted through HDN, an increase of nearly 28 percent compared to January 2024.

The surge coincided with announcements from multiple mortgage providers regarding impending rate increases, HDN reported. The highest volume of applications was recorded in the second and third weeks of January before activity slowed to levels comparable to the previous year. HDN processes the majority of mortgage applications in the Netherlands.

Only January 2022 saw a higher number of applications, with 54,597 requests, largely driven by homeowners refinancing their existing mortgages.

A record number of mortgage applications came from homebuyers last month, with 27,983 applications submitted, surpassing the previous peak of just over 23,000 in January 2020.

The average mortgage amount requested by homebuyers increased to 368,236 euros in January, representing a 9.1 percent rise from the previous year. The average market value of homes was 511,031 euros, marking an increase of nearly 12 percent.

Homeowners seeking to renovate also applied for larger loans. The average amount borrowed for home improvements or sustainability upgrades increased by almost 14 percent to 84,542 euros. Nearly one in three applications was for increasing an existing mortgage, according to HDN.