Arbeitspapier

Loan types, leverage, and savings behaviour of Danish households

Using Danish household level data, we find that a relatively large share of total interest-only mortgage debt is held by families with few liquid assets and high loan to value ratios. This may arise because families with interest-only loans do not fully use the lower instalments to increase their savings or to amortise more expensive debt. This is in particular the case for the families who choose interest-only loans with a variable interest rate, which is the most common loan type in Denmark, and the largest difference is found for those families who have the lowest savings propensity, and those with a high loan to value ratio. Furthermore, first time borrowers choosing interest-only loans take loans of higher initial sizes and have higher loan to value ratios than first time borrowers choosing amortising loans.

Sprache
Englisch

Erschienen in
Series: Danmarks Nationalbank Working Papers ; No. 97

Klassifikation
Wirtschaft
Household Saving; Personal Finance
Macroeconomics: Consumption; Saving; Wealth
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Housing Supply and Markets
Thema
Mortgage loans
loan types
savings
financial stability

Ereignis
Geistige Schöpfung
(wer)
Kuchler, Andreas
Ereignis
Veröffentlichung
(wer)
Danmarks Nationalbank
(wo)
Copenhagen
(wann)
2015

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Kuchler, Andreas
  • Danmarks Nationalbank

Entstanden

  • 2015

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