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Mortgage Update | Q3-2020 | Despite COVID-19 pandemic this year might become a record year for the Dutch mortgage market

By November 10, 2020 No Comments

Utrecht, November 11th 2020 – Mortgage revenue in the third quarter of 2020 has grown by 26% compared to the third quarter in 2019 to 41 billion. The number of mortgages has grown by 22% to 120 thousand. Compared to the second quarter of 2020, numbers also continue to grow: mortgage revenue increases by 8% and the number of mortgages grows by 5%. The numbers rose among all groups, but it is noteworthy that new homeowners and transferors show the strongest growth. 

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 “The COVID-19 pandemic appears to boost the Dutch mortgage market. In the second quarter of 2020, we already saw historical growth among people taking out refinancing and additional loans, and this quarter the numbers are also increasing for new homeowners and transferors” according to Joppe Smit of consulting firm IG&H. “All numbers point in the direction of new record this year with the highest mortgage revenue so far”. 

The average mortgage value grows by 2,8% compared to the previous quarter to €342.000For people taking out refinancing and additional loans, the average mortgage value increases by 3,8%. For new homeowners and transferors, the average mortgage value grows by approximately 2%. 

New homeowners and transferors show strongest growth 
Mortgage revenue of people refinancing and taking out additional loans grows again this quarter to €16 billion. Growth for this group is relatively low compared to the previous quarter with 5,2% growth, while new homeowners (+13,1%, 8 bn.) and transferors (+8,8%, 17 bn.) show stronger growth. “We are seeing a significant increase in the number of home buyers again. Now that people are forced to spend more time at home, this could be increasing the desire to move for some of them. In any case, the figures show no Corona-induced reluctance. The mortgage market benefits from this ”, says Smit 

Market share of insurers under pressure
The market share of insurers decreases by 2,5 percentage points compared to the previous quarter to 11,8%Foreign parties increase strongly (+1,9 percentage points), and the market share of the banks recovers slightly compared to decreases earlier this year (+0,8 percentage points) and reaches a market share of 56,6%. ING passes ABN AMRO in the top 10 and secures the 2nd spot. 

Over 6,200 advisors have passed the course for advisors in sustainable housing
Since the beginning of this year, IG&H reports on the progress of industry collective Duurzaam WonenTheir aim to educate at least 80% of all mortgage advisors in sustainability by the end of 2020 is now in sightTo date, 7,070 advisors have applied, an increase of 25% compared to the previous quarter. This implies that 70% of all mortgage advisors have now applied.  

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Contact
Joppe Smit
Director at IG&H 
E: joppe.smit@igh.com
T: 06 2035 2438 

Author & data-analysis IG&H mortgage update: 
Chris van Winden (chris.vanwinden@igh.com) & Annelies van Putten-Stemfoort (annelies.vanputten@igh.com) 

 

Joppe Smit

Author Joppe Smit

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