Banks’ market share in mortgage loans is no longer shrinking
In the past two years, Dutch banks accounted for roughly two-thirds of new mortgage loans granted in connection with both home purchases and renegotiations. One-third of the new home loans were granted by insurance firms, pension funds and investment funds. The same distribution was seen in 2016, which points at a notable stabilisation in market shares following the shift from banks to non-banks witnessed in the 2013-2016 period. This can be explained by the fact that banks have returned to the market with increased activity following several years of restraint. For example, in the 15-20 year fixed-interest period segment, their market share went up from one-third to 45%. A further factor is that insurance firms have less room for growth following previous mortgage loan portfolio expansions.
Chart 1: Market shares in home mortgage loan production