Market leader Rabobank raises mortgage interest, ‘end of low interest in sight’

And if there is one sheep over the dam, there are often more to follow, or so is the expectation of the Van Bruggen Adviesgroep, a large independent mortgage advisor.

More money out than in

The reason for banks and other providers to raise mortgage rates is the increased market interest rate. That is the rate at which the banks themselves can borrow money and that has increased in recent months.

As a result, the margins for the mortgage provider are shrinking – at least, as long as mortgage interest rates remain low. More money is going out than coming in.

In the highly competitive mortgage market, providers are generally not eager to raise mortgage rates, according to Van Bruggen’s advisers, for fear that consumers will take out their mortgage with a competitor.


Due to the shrinking margins, they are now taking that risk anyway. Last week, several mortgage providers raised their interest rates, to an average of 1.54 percent fixed interest for a mortgage with a term of 30 years. The rates for 10 and 20 years have also increased.

The providers are encouraged by the fact that market leader Rabobank has also taken the step to raise mortgage interest rates. Partly because of this, Van Bruggen expects a series of mortgage interest increases in the coming period.

The mortgage interest barometer of De Hypotheker also predicts an increase in long-term interest rates in the coming week.

“Now that the first lenders have increased their mortgage rates, we expect other lenders to follow. With possibly several rounds of increases,” according to the advisory group.

Van Bruggen also calls it ‘remarkable’ that the increases, in contrast to the reductions of recent months, quickly amount to 5, 10 or even 15 hundredths of a percent.

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