Profits on Dutch mortgages suspiciously high

1st November 2010, Comments 0 comments


Profit margins on Dutch mortgages are unusually high, according to a report by the Netherlands Competition Authority NMa. According to popular daily De Telegraaf, the “banks are suspected of price fixing”.

The Nma’s Mortgage Interest Quick Scan found that profit margins on mortgages are high both historically and in comparison to surrounding countries. “High profit margins can indicate a lack of market forces,” the report concludes. While other explanations are also possible, in the light of the Quick Scan, the NMa plans to go ahead with a more thorough investigation.

Around 3.5 million households in the Netherlands have mortgages on their properties, out of a total of four million owner-occupied homes. Collectively Dutch mortgage holders owe 590 billion euros.


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