Share of mortgage market
Home mortgages
The housing market
The prices of existing residential properties were 6.4% lower on
average than in 2012. Nonetheless, the first modest signs of a
recovery are visible in the Dutch housing market. In the second half
of 2013, the number of residential properties sold rose compared to
the same period in 2012 and the average price of existing residential
properties remained virtually stable. The elimination of uncertainties
concerning the housing market and the relative calm on the policy
front have contributed to confidence in and a recovery of the
housing market. The Dutch economy is slowly picking up and the
housing market recovery appears to be continuing. Average house
prices are expected to stabilise in 2014.
Residential properties have become more affordable after several years of falling prices,
and accordingly more attractive for first-time buyers. Moreover, the relatively low prices
may encourage circulation from within the group of households without a residual debt.
The latent residual debt from property values that are lower than the corresponding mortgage
loans tends to lock in people wanting to move up the residential property housing ladder.
Mortgage portfolio
Rabobank Group's share of the Dutch mortgage market of 26.0% (31.1%) of new mortgage
production in 2013 was significantly lower than in previous years. The market share of the local
Rabobanks fell to 19.2% (22.8%), Obvion's market share declined to 6.6% (7.8%) and Friesland
Bank contributed 0.2% (0.5%) to the total market share of Rabobank Group.
Other market participants, especially insurers, increased their market share by offering low
interest rates on a temporary basis in 2013. In Rabobank's view, it is important that the rate is
appropriate. While of course we want to remain competitive in the market, we are convinced
that there is more to a mortgage than simply the interest rate. There are other things to
consider, such as high-quality advice that takes account of affordability, both now and in the
future. And, a product that offers sufficient flexibility.
As a result of the low number of transactions in the housing market and additional repayments
on existing mortgages, Rabobank Group's mortgage portfolio contracted to EUR 209.1 (209.6)
billion in 2013.The problem of negative equity has led mortgage customers to make repayments
in order to bring the level of their mortgage more in line with the value of their homes.
Voluntary home mortgage repayments of EUR 3.6 billion were more than EUR 1.3 billion higher
than in 2012.
National Mortgage Guarantee (Nationale Hypotheek Garantie, or NHG) financing accounts for
20% of the mortgage portfolio (19%). The size of the NHG portfolio increased by EUR 2.8 billion
in 2013, spurred by the more generous NHG limits for acceptance. The NHG acceptance limit
will be reduced in the coming years, meaning that the growth of the NHG portfolio will flatten.
The share of interest-only loans in the mortgage portfolio has been declining since 2011 as a
result of the changes to Code of Conduct for Mortgage Loans (Gedragscode Hypothecaire
Financieringen, or GHF) in 2011 .This decline accelerated in 2013 due to the changed tax
treatment of owner-occupied housing as of 1 January 2013 and the extended transition period
for the conversion of mortgages. Customers with interest-only finance accounted for 25% (26%)
of the mortgage portfolio at the end of 2013.
35
30
2012 2013
2009
2010
2011
40 Annual Report 2013 Rabobank Group
