School of Profit
Mortgage Markets
Last Updated: Nov 20, 2009
What countries can I get a mortgage in, and on what terms?
Unfortunately mortgages are complex. It is not easy to present what’s on offer simply – nor to persuade mortgage providers to keep the data updated.
If you buy abroad, there are essentially two ways of getting a mortgage:
- Use a specialist International Mortgage Broker.
Rather than trying to approach a local mortgage company, you can use a specialist Overseas Mortgage Broker. - Ask a foreign bank or mortgage provider.
These companies are familiar with the local bureaucracy and language and will work to find you the best mortgage as well as look after all negotiation and paperwork.
We’ve partnered with Which Way to Pay to bring you a list of specialist mortgage brokers.
You simply have to ask leading local banks in the country where you are buying. There’s a list of types of mortgages available in different countries below.
Many countries don't have active mortage markets. Where (in the table below) "Mortage Debt (% of GDP)" is less than 2%, the country doesn't have an active mortage market. Abandon hope now!
GLOBAL PROPERTY GUIDE MORTGAGE MARKET INDICATORS |
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| COUNTRY | MORTGAGE MARKET STRUCTURE1 | LTV OF NEW LOANS (%)2 | TYPICAL LOAN TERM (YEARS)3 | MORTGAGE DEBT (% OF GDP)4 | HOME OWNERSHIP RATE (YEAR OF CENSUS)5 |
| Algeria | .. | 90 | 30 (max) | 1.5 | 63 (1985) |
| Argentina | Variable | 80 - 90 (avg.) | 12 - 20; 20 (max) | 1.7 | 68 (1990) |
| Australia | Variable | 90 - 100 | 25 | 71.0 | 69 (2004) |
| Austria | Fixed | 60 (avg.) | 25 | 26.1 | 57 (2001) |
| Bangladesh | .. | 50-70 (avg.) | <15 | 2.5 | 86(2001) |
| Belgium | Fixed | 100 | 20 | 28.3 | 68 (2001) |
| Bolivia | .. | 70 (avg.) | 15 - 20 | 9.5 | 60 (1997) |
| Brazil | Variable | 75 - 100 | 20 (max) | 5.0 | 75 (2000) |
| Bulgaria | .. | 90 | 30 | 4.7 | 97 (2002) |
| Canada | Fixed | 75 or 95 | 25 | 43.0 | 66 (2004) |
| Chile | Variable | 75 | 8 - 20 | 16.0 | 73 (2002) |
| China | Variable | 80 | 10 - 15; 30 (max) | 12.0 | 80 (2006) |
| Colombia | Variable | 70 | 30 (max) | 12.0 | 61 (1997) |
| Croatia | Fixed/ Variable | 50 | 20 or 30 | 10.0 | 61 (1999) |
| Czech Rep | Fixed (Mixed) | 100 | 20 | 5.5 | 47 (2001) |
| Denmark | Fixed | 80 | 30 | 87.9 | 53 (2004) |
| Egypt | Variable | 60 | 10 - 15 | 3.0 | 69 (1996) |
| Estonia | Variable | 90 | 30 | 22.0 | 85 (2002) |
| Finland | Variable | 75 - 80 (avg.) | 15 - 20 | 35.7 | 64 (2005) |
| France | Fixed | 100 | 15 - 20 | 29.0 | 56 (2002) |
| Germany | Fixed | 80 | 20 - 30 | 54.0 | 43 (2002) |
| Ghana | .. | 80 | 20 - 25 (max) | 0.5 | 57 (2000) |
| Greece | Variable | 55 (avg.) | 15 | 17.6 | 74 (2004 |
| Honduras | Variable | 70 | 20; 30 (max) | .. | 72 (2001) |
| Hong Kong | Variable | 90 | 15 | 44.0 | 57 (2004) |
| Hungary | Variable (Mixed) | 70 | 5 - 35 | 11.0 | 92(2003) |
| India | Mixed | 85 | 20 (max) | 2.0 | 87 (2001) |
| Indonesia | Variable | 90 | 8, 10, or 15; 20 (max) | 5.8 | 96 (2001) |
| Iran | 70 - 80 | 18 (max) | 3.0 | 73(1996) | |
| Ireland | Variable | 100 | 20 | 59.2 | 77 (2004) |
| Israel | Variable | 70 - 95; 80 (avg.) |
15, 30 (max) | 22.0 | 74 (2002) |
| Italy | Variable (Mixed) | 80 | 5 - 20 | 15.0 | 80 (2002) |
| Japan | Fixed (Mixed) | 70 - 80 (avg.) | 20 - 30 | 36.4 | 61 (2003) |
| Jordan | Variable | 80 - 90 (avg.) | 20 (max) | 11 | 66 (2004) |
| Korea | Variable | 70 | 3; 20 (max) | 2.1 | 54 (2000) |
| Latvia | Variable | 100 | 30 | 14.0 | 60 (2000) |
| Lithuania | .. | 100 | 25 | 12.6 | 87 (2002) |
| Luxembourg | Variable | 80 (avg.) | 20 - 25 | 33.5 | 67 (2002) |
| Malaysia | Variable | 80 | 30 (max) | 31.5 | 85 (1998) |
| Mexico | Variable | 100 | 10 - 15 | 11.0 | 79 (2000) |
| Morocco | .. | 70-100 | 25 (max) | 7.0 | 69 (1985) |
| Netherlands | Fixed | 125 | 30 | 100 | 55 (2005) |
| New Zealand | Variable | 60 - 80 | 30 | 78.2 | 68 (2001) |
| Norway | Variable | 70 | 15 - 20 | 45.0 | 77 (2001) |
| Pakistan | 80 | 20 (max) | 0.7 | 81 (1998) | |
| Peru | Variable | 90 | 25 | 2.5 | 79 (2001) |
| Philippines | Variable | 70 - 80 (avg.) | 20 - 30 (max) | 12 | 71 (2000) |
| Poland | Variable | 100 | 5 - 32.5 | 5.2 | 75 (2004) |
| Portugal | Variable | 90 | 25 - 30 | 50.7 | 75 (2001) |
| Romania | Variable | 75 | 10 - 20 | 1.8 | 97 (2002) |
| Russia | Fixed/ Variable | 90; 64 (avg.) | 15 - 20 | 0.6 | 64 (2003) |
| Saudi Arabia | .. | .. | .. | 1.0 | 45 (2000) |
| Singapore | Variable | 80 | 30 - 35 | 61.3 | 92 (2005) |
| Slovakia | Variable | 75 | 5 - 15 | 5.9 | 76 (2001) |
| Slovenia | Variable | 50 (avg.) | 10 | 3.5 | 82(2002 |
| South Africa | Variable | 80 | 10 - 20 | 26.1 | 56 (2001) |
| Spain | Variable | 100 | 15 - 20 | 40.2 | 83 (2004) |
| Sweden | Variable | 80 - 95 (avg.) | 30 - 45 | 50.3 | 49 (2003) |
| Switzerland | Fixed | 80 | 15 - 20 | 130 | 31 (2003) |
| Taiwan | Variable | 70 | 25 | 26.0 | 87 (2004) |
| Thailand | Variable | 80; 90 - 100 | 10 - 20; 30 (max) | 16.0 | 82 (2000) |
| Tunisia | Variable | 80 | .. | 6.0 | 80 (1989) |
| Turkey | Variable | 75 - 80 | 10 | 2.5 | 64 (2000) |
| UAE (Dubai) | Variable | 90; 60 (avg.) | 15 - 25 | .. | .. |
| UK | Variable | 110 | 25 | 64.0 | 71 (2004) |
| Uruguay | Variable | 70 | 25 (max) | 9.8 | 81 (2004) |
| US | Fixed | 76 (avg.) | 30 | 69.4 | 69 (2004) |
| Venezuela | Fixed | 70 - 75 | 25 (max) | 0.7 | 76 (1990) |
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1 Mortgage Market Structure shows the predominant type of mortgage loans. Mortgages with interest rates fixed for more than five years are regarded as Fixed rate mortgages. Variable rate mortgages are mortgages with interest rates fixed for less than five years. In several countries, mortgages interest rates are fixed for 1 to 3 years before adjusted (these mortgages are still considered variable rate mortgage). In Chile, Colombia and Mexico, most mortgages are indexed to inflation (i.e. nominal interest rate plus inflation). Since the actual amount of amortization is subject to fluctuations due to inflation, these mortgages are also considered variable rate mortgages. 2 Loan to Value (LTV) Ratio is the amount of the loan that can be taken as a percent of property value. A higher LTV ratio implies a lower down payment or equity to be produced by the borrower. 3 Loan Term is the number of years before the loan is paid. A longer loan term implies a smaller amount of periodic amortization. 4 Mortgage Debt as percent of GDP is a measure of the depth of the housing market. Higher ratios are correlated with 1) faster and deeper financial innovations in the mortgage market; and 2) more liberal financial markets. Latest data available. 5 Home Ownership Rate shows the number of households which own their dwelling units as a percent of total number of households. In some cases, the figure represents the number of owner occupied housing units as a percentage of total occupied units. Sources: EMF, BIS, OECD, UNECE, ECLAC, IADB, IUHF, IUT, national statistics, and central bank statistics |
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Mortgage market structures are important
The type of mortgages available to borrowers in a country can strongly affect house price dynamics.
- Where floating rate mortgages predominate, house prices are in general likely to be volatile.
- Where fixed rate mortgages are normal, house prices will tend to be more stable (though mortgage structures are only one of several factors)
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