Average LTV ratio in the Netherlands 2013-2020

This statistic shows the development of the average loan-to-value (LTV) ratio in the Netherlands from the first quarter of 2013 to the fourth quarter of 2020. The LTV ratio measures the mortgage value divided by the appraised value of the residential property you want to buy. A high ratio means a home buyer needs less of its own payments as the mortgage provider hands out a relatively large loan. A lower LTV means a smaller loan and less risks for mortgage providers but requires more savings from consumers before being able to afford a home.

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 for many years to deduct interest paid on mortgage from pre-tax income for a maximum period of thirty years, essentially allowing for income support for homeowners. Currently, the Dutch government tries to tackle this by slowly lowering the maximum LTV ratio. In the fourth quarter of 2020, the average LTV ratio was 64.5 percent whilst the maximum LTV ratio was 100 percent.