Dutch mortgage lending rebounds as households borrow more

Mortgage lending by banks in the Netherlands is growing again after a brief downturn, according to new figures from the Dutch central bank DNB .

In June 2025, the total amount of outstanding residential mortgage loans rose by 5.2% compared with the previous year, reaching €611 billion. In June 2024, the growth rate was just 2.4%.

The last time bank lending for residential mortgages saw this level of growth was in 2008, the DNB said.

Dutch mortgage growth has outpaced the euro area average since the final quarter of 2023, and the temporary dip in the Netherlands was less severe than in other parts of Europe, according to bank figures.

Faster-rising house prices, stronger wage growth and lower interest rates in the Netherlands have all contributed to the increase, the bank said. House prices in the Netherlands rose by an average of 9.3% in June compared to a year earlier, national statistics office CBS said last month.

More borrowers are also opting for shorter fixed-interest periods. About half of all new residential mortgages issued by banks now fall into the 5- to 10-year category. Before 2023, when interest rates were still low, most buyers chose longer fixed-rate terms.

Meanwhile, Dutch households held €429 billion in savings in June, 10% more than a year earlier, the Telegraaf reported on Tuesday, citing central bank data.

At the same time, the amount held in payment accounts fell from €116 billion to €110 billion. Three years ago, that figure stood at €133 billion.

Consumers have become more interest-rate aware, Tilburg University professor Harald Benink told the paper. “With all the wage rises, you would expect an increase in bank balances, but this has not happened,” he said. “The interest on current accounts is zero, so people are more likely to put the money in a savings account.”