Mortgage value forecast change in the Netherlands 2021-2023

The Dutch Central Bank (DNB) estimated that the value of mortgages would increase in 2021 with approximately three percent compared to the year before. Within Europe, the Netherlands counts as one of the countries with the highest mortgage debt among private individuals. This has a political background as the Dutch tax system allowed homeowners to deduct interest paid on mortgage from pre-tax income for a maximum period of thirty year, essentially allowing for income support for homeowners. In the Netherlands, this system is known as hypotheekrenteaftrek. Since 2014, the Dutch government is slowly scaling this down, with an acceleration planned from 2020 onwards. In 2020, the market share of mortgage turnover in the Netherlands reached approximately 47 percent for the three banks ABN AMRO, Rabobank and ING.