Decisive action needed with regard to interest-only mortgage loans

Over half of the aggregate Dutch mortgage debt consists of loans that do not involve any contractual repayments during the loan term. There is a risk that the households in question may not have the means to repay their debts before or when their loans expire. Lenders must actively alert customers to this risk and help them find a suitable solution. They should preferably encourage customers to reduce the interest-only portion of their loans, for example by pointing out that they may use the financial leeway they get when refinancing mortgages to a lower rate to make extra repayments. This is stressed in the Financial Stability Report, which we published today.

Decisive action needed with regard to interest-only mortgage loans

Indicators of Financial Stability

What is financial stability?

The financial system is at the heart of the economy. It enables people to save, borrow, invest and hedge financial risks that they are unwilling to bear themselves. A stable financial system guarantees that payments can be made securely and quickly. These services are often taken for granted, even though they are essential to the functioning of the economy. This is why DNB is committed to maintaining a smoothly operating financial system that is sufficiently resilient to shocks and contributes towards creating sustainable economic growth in the Netherlands.

What is financial stability?

How does DNB promote financial stability?

DNB is committed to ensuring stable prices, solid financial institutions and a properly functioning payment system. These elements are all essential to maintaining a smoothly operating financial system. DNB also focusses on risks that may harm the financial system as a whole, warns against these risks and issues advice. For instance by arguing for a limit to the amount of mortgage loans that home owners are allowed to take out. We also improve the financial system's resilience by requiring financial institutions to strengthen their buffers. To this end,

How does DNB promote financial stability?