Developing the Mortgage Market: Technology, Property Rights, and Banking

Angelo D'Andrea, Patrick Hitayezu, Kangni Kpodar, Nicola Limodio and Andrea Presbitero

No 20746, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Combining administrative data on credit, mortgages, and construction in Rwanda, this paper shows that technology helps overcome imperfections in property rights and foster the development of the mortgage market. Exploiting quasi-experimental variation in 3G internet coverage and a land title reform, we find that mobile connectivity shifts borrowers from microfinance to banks. 3G internet facilitates the distribution of land titles, which borrowers use as collateral for bank loans and mortgages, thus promoting household investment in real estate. A mediation analysis and structural estimation reveal that the property rights channel accounts for 30–37% of the effect of mobile internet on bank lending and 75–80% of the effect on collateralized loans.

Keywords: Mortgage; Banks; Credit (search for similar items in EconPapers)
JEL-codes: G21 G23 O33 (search for similar items in EconPapers)
Date: 2025-10
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