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Kai Foerster
- 3 July 2023
- MACROPRUDENTIAL BULLETIN - FOCUS - No. 22Details
- Abstract
- Long-term trends in loan-to-value (LTV), debt-to-income (DTI) and debt-service-to-income (DSTI) ratios started to reverse in 2022. Higher interest rates in combination with elevated house prices are pushing up servicing costs for mortgages, resulting in higher shares of new loans with DSTIs over 30%. In countries with regulatory caps on monthly mortgage repayment ratios, an increasing share of new loans have DSTIs close to the limits. However, banks are not making full use of the flexibility allowed to them to lend above the DSTI limits, suggesting the measures in place are not excessively constraining lending.
- JEL Code
- G21 : Financial Economics→Financial Institutions and Services→Banks, Depository Institutions, Micro Finance Institutions, Mortgages
G51 : Financial Economics
R30 : Urban, Rural, Regional, Real Estate, and Transportation Economics→Real Estate Markets, Spatial Production Analysis, and Firm Location→General