The Dutch Authority for the Financial Markets has set the mortgage test rate used for affordability calculations on mortgages with an interest rate fixed for less than 10 years at 5% for the second quarter of 2025. Mortgage providers must apply the published test rate when calculating the financing burden and permitted financing burden for in-scope loans, as a consumer protection measure against payment shocks when the fixed-rate period ends. Where the actual offered borrowing rate is higher than the test rate, providers must use the offered rate instead. The test rate is calculated in line with Article 3(10) of the Temporary Regulation on Mortgage Credit as a market-share-weighted average of the rates applied on the first day of the last month of the current quarter by at least five of the six largest mortgage providers, based on 10-year fixed, annuity mortgages without discounts or guarantees and with a maximum loan-to-value ratio of 100%, with market shares derived from Dutch Cadaster data on the number of mortgages originated.
Dutch Authority for the Financial Markets 2025-03-14
Dutch Authority for the Financial Markets sets second quarter 2025 mortgage test rate at 5%
The Dutch Authority for the Financial Markets has set the mortgage test rate at 5% for mortgages with interest rates fixed for less than 10 years for Q2 2025. Mortgage providers must use this rate for affordability calculations unless the offered rate is higher. The test rate is a market-share-weighted average based on data from the largest mortgage providers.