DNB warns of overheating in Dutch housing market

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The Netherlands Bank

The Netherlands housing market is in danger of becoming overheated as more borrowers take out interest-only housing loans, the country’s central bank warns in its latest financial stability report.

“Decisive action” is needed over this type of borrowing, the Netherlands Bank (DNB) says in an English language summary of the report, released on October 9.

“Over half of the aggregate Dutch mortgage debt consists of loans that do not involve any contractual repayments during the loan term”, the DN

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