In 2012, over-60s much more often than younger home owners had interest-only mortgages. More than one third of home owners aged 60 years and older have paid off their mortgage.
Home owners by type of mortgage loan, 2012
Share interest-only mortgages higher among older people
More than half of Dutch households have interest-only mortgages, sometimes in combination with another type of mortgage. Younger people under the age of 30 mainly have repayment mortgages. The guaranteed life insurance mortgage is the most common type of mortgage.
The share of interest-only mortgages is much higher among older people; 10 percent of younger home owners versus 43 percent of over-60s have interest-only mortgages. Possibly, many over-60s have taken out new mortgages, for example to withdraw equity if the value of their home exceeds the mortgage loan. They often opted for interest-only mortgages.
Average mortgage loan amounts and WOZ values owner-occupied houses, 2012
Widest gap between house value and mortgage loan found among older house owners
Over-60s own the most expensive dwellings and have the lowest mortgage loans. The average housing value exceeds 300 thousand euros, the average mortgage loan amount is 137 thousand euros. They can easily pay off outstanding mortgage debts when they decide to sell their homes.
Petra Ament, Saskia Janssen-Jansen and Jeroen Nieuweboer