A micro view on home equity withdrawal and its determinants: Evidence from Dutch households

André Ebner

Journal of Housing Economics, 2013, vol. 22, issue 4, 321-337

Abstract: For most households, home ownership is the largest wealth component that has become more accessible through innovation and deregulation in mortgage markets. This paper studies the factors driving home equity withdrawal (HEW) at the household level using Dutch survey data. In the Netherlands, house prices were growing fast and mortgage expenses are to a large extent tax deductible. Expectations and perceptions do seem to play an important role in HEW. Withdrawers tend to be more positive about house price developments and – although having lower income – less concerned about their future economic situation. HEW can have a significant impact on both households and the economy, with most of the equity released being reinvested in the housing sector and only a small share used to finance consumption expenditure.

Keywords: Home equity withdrawal; Home equity based borrowing; Housing market; Mortgages; Expectations (search for similar items in EconPapers)
JEL-codes: D1 D9 E2 E4 G2 R2 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (4)

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Working Paper: A micro view on home equity withdrawal and its determinants. Evidence from Dutch households (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhouse:v:22:y:2013:i:4:p:321-337

DOI: 10.1016/j.jhe.2013.10.001

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