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Mortgage Update | Insights from Q4 2020 and an annual review of 2020

Record year for mortgage revenue, due to strong rise in people refinancing and taking out additional loans in year of COVID-19

Utrecht, 11 February 2021 – Mortgage revenue in the fourth quarter of 2020 has grown by 22% compared to the fourth quarter in 2019 to €44 billion. The total number of mortgages has also grown, but it is noteworthy that the number of mortgages for new homeowners has declined substantially. In 2020, the number of mortgages has grown to 452 thousand, accounting for a record mortgage revenue of €155 billion.

‘The strong growth of 26% in mortgage revenue this year compared to 2019 is mainly driven by record numbers for people refinancing and taking out additional loans. Additionally, both the number of mortgages and mortgage revenue have also increased for new homeowners and transferrers’, according to Joppe Smit. A further increase in the average mortgage value also contributed to the increase in mortgage revenue. In 2020, the average mortgage value was €343.000, an increase of 5,1% compared to 2019. This is the fourth year in a row that the annual growth rate of the average mortgage value declines.

Record year for group refinancing and taking out additional loans

The number of mortgages for people refinancing and taking out additional loans has increased by 47% in 2020 compared to 2019 and mortgage revenue has increased by no less than 50%. Altogether, the number of mortgages for this group was 187 thousand and mortgage revenue was over €60 billion in 2020. Low mortgage interest rates played an important role in this development. ‘In the second quarter of 2020, people were refinancing on a large scale (and taking out additional loans), because people thought the interest rates would go up because of COVID-19. However, mortgage interest rates declined even further later this year’ says Joppe Smit.

Decrease in number of new homeowners

The number of mortgages for new homeowners has decreased by 26% in the fourth quarter of 2020 compared to previous quarter to 120 thousand mortgages. This is also a 13% decrease compared to the fourth quarter in 2019. ‘New homeowners are currently in a tough situation on the housing market, due to low housing supply and high prices’, says Joppe Smit. ‘Another potential reason for the decline could be that new homeowners have postponed their mortgage to the beginning of 2021, because they will not have to pay a property transfer tax anymore by then.’

Banks recover market share through strong growth

The market share of banks increases by 5 percentage points to 56,6% in the fourth quarter. After three quarters of declining market share and a slight increase last quarter, banks manage to recover. They do particularly well among people refinancing and taking out additional loans, where their market share increases by 7,8 percentage points to 61,6%. Rabobank, ING and ABN AMRO experience the strongest growth this quarter.

Industry collective Duurzaam Wonen achieves its objective

This year, IG&H has reported on the progress of industry collective Duurzaam Wonen. In the fourth quarter, they have achieved their objective to educate at least 80% of all mortgage advisors in sustainability by the end of 2020! To date, 8,500 advisors have applied (85% of all mortgage advisors) and 7,290 advisors have passed the exam.

Joppe Smit, Director at IG&H E: T: 06 2035 2438

Author & data-analysis IG&H mortgage update:

Annelies van Putten-Stemfoort (

Revision of Kadaster information on mortgages

Kadaster renews the methodology behind the mortgage data. As a result, the number of reported private mortgages increases and the reported mortgage values decline. In this update about 2020, we still use the data according to the old methodology. From Q1 2021 on, IG&H will report on the renewed data. Data from the years 2019 and 2020 will then be adjusted with retroactive effect. A further explanation will be given at the end of our Mortgage update (in Dutch).

Joppe Smit in this morning's (11/02/2021) BNR broadcast about the Dutch mortgage market


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