Competition intensifies and price differentiation increases in the Dutch residential mortgage loan market

The maximum margin for mortgage loans with a high LTV compared to mortgages with a low LTV stood at 75 basis points at the beginning of 2016.  According to market operators, higher loan losses and a higher capital requirement at banks and insurers for high-LTV loans can only tài khoản for a very small part of this difference.  The remaining difference may be explained by the fact that there is slightly less competition in the high-LTV segment,  due to the reluctance of some of the new entrants to provide mortgages in this segment.

Margins charged to self-employed borrowers have disappeared

Until 2015, self-employed borrowers paid higher interest rates than those with a permanent employment contract (see Figure 3). This difference has disappeared since then. Mortgage providers now have more confidence in the earning capacity of the self-employed, while the perceived security of a permanent contract has decreased. In addition, increased market competition and the growing number of self-employed may have contributed to the convergence of interest rates for both groups.