In the third quarter of 2015, only half of all mortgages were taken out with the three major banks. Competition, especially from pension funds and insurers, is increasing.
Market share 50 percent
Consumers go to a major bank less often to take out a mortgage. In the third quarter of 2015, the market share of Rabobank, Good Finance was just under 50 percent of new mortgages. This is the first time. The market share was 60% earlier this year.
This is apparent from an analysis by IG&H, the consultancy that updates the mortgage market every quarter.
Currency mortgages in top 5
The major banks lose their market share mainly to the pension funds and insurers. The new entrant Munt Hypotheken in particular is doing well. Within a year, this collaboration between various pension funds has taken fifth place in the top 10 of mortgage lenders.
Why is competition increasing?
In an earlier analysis of the increased competition on the mortgage market, a number of causes for this development emerge:
- The Dutch mortgage market has become more interesting for investors, partly due to the repayment obligation.
- It is easier for ‘non-banks’ to enter the mortgage market, for example through a control party.
- Pension funds and Insurers have less strict capital requirements than traditional banks. Among other things, they can offer a lower mortgage interest rate.