Average LTV ratio in the Netherlands 2013-2023

The average mortgage loan-to-value (LTV) ratio in the Netherlands has been on a downward trend in recent years. In the first quarter of 2023, the LTV ratio stood at 57 percent, meaning that homebuyers took out a loan amounting to 57 percent of the value of the purchased property. A high ratio means a home buyer needs less of its own payments as the mortgage provider hands out a relatively large loan. A lower LTV means a smaller loan and less risks for mortgage providers but requires more savings from consumers before being able to afford a home.

Within Europe, the Netherlands counts as one of the countries with the highest mortgage debt among private individuals. This has a political background as the Dutch tax system allowed homeowners for many years to deduct interest paid on mortgage from pre-tax income for a maximum period of thirty years, essentially allowing for income support for homeowners.