SNS REAAL : ‘Bouwsparen’ Symposium SNS Bank: widespread desire for behaviour change in housing finance

Lower risks in mortgage lending are important and a behaviour change towards saving for a home can contribute to this. This common basis was one of the outcomes of the Bouwsparen symposium organised by SNS Bank on Wednesday, 31 October in The Hague. The symposium was attended by politicians, representatives from the government, regulatory bodies, building sector, banking sector, insurance companies and legal representatives such as the FNV Jong (Dutch Trade Union Organisation), NVM (Dutch Association of Real Estate Agents) and VEH (Dutch Homeowners' Association).

SNS Bank believes Bouwsparen can make a significant contribution to a stable and sustainable housing market. In this context, Ernst-Jan Boers, Chairman of the Board of SNS Retail Bank, states: "Dutch people have en masse begun to consider it normal to take out an unlimited loan for their home. With all the associated consequences. Other countries take a different view on this. There, it is customary to bring in some of your own money. It is this change in mentality that we have to bring about in the Netherlands. It will ultimately lead to less lending, lower financing costs and a more stable housing market."

"It will ultimately lead to less lending, lower financing costs and a more stable housing market."

Ernst-Jan Boers, Chairman of the Board SNS Retail Bank

At the symposium several speakers entered into debate with each other. Otto Fricke, a member of the German Parliament representing the German, liberal FDP, discussed the fact that Bouwsparen and the accompanying change in mentality are not accomplished overnight: "The current German law dates back to the fifties, with a few revisions since then. A change in mentality to save for a home can therefore not take place at once."

The discussion showed that mortgage loans and the financing of the housing market must not be viewed in isolation. Ernst-Jan: "It is a broad issue: it not only concerns the housing market and the rental market, but the labour market too. Even the financial position of first-time home buyers with a student loan debt has its effect."

In the coming period, SNS Bank will continue to actively put the importance of a behaviour change to save more to buy a home and the role of Bouwsparen in this respect on the political agenda.

An earlier study commissioned by SNS Bank showed that nearly 70 percent of the Dutch population would like to finance a home with as much (private) savings as possible in order to get the lowest mortgage payments.