Mortgage Markets in Selected Industrialized Countries: General Characteristics
|Typical Rate Structure||Recent/Peak LTV ratios (In percent)1||Typical Term (Years)||Prepayment Fees||Equity Release Products||Tax Regime2|
|Denmark||Fixed||80||30||Administration fee only||Used||Partial Ded; WT; IT|
|France||Fixed||70/100||15||Limited to 3% of repaid principal3||Not used||WT; IT|
|Germany||Fixed||70/80||25||Lender entitled to compensation for lost income4||Not used||IT|
|Japan||Fixed||85/100||25||Lender entitled to compensation for lost income||Limited use||Limited term Ded; WT; IT|
|Netherlands||Fixed||100/115||10||No fees up to 10% of capital prepaid each year||Used||Ded; IT|
|United Kingdom||Floating||70/110||25||Usually no fees||Used||IT|
|United States||Fixed||80/100||30||Usually no fees||Used||Ded; IT|
Maximum loan-to-value (LTV) for eligibility to Realkreditobligationer in Denmark, Obligations Foncieres in France, and Pfandbriefe in Germany are 80 percent, 60 percent, and 60 percent, respectively.
Interest deductibility (Ded); Wealth tax on housing (WT); Inheritance tax on housing (IT). In most countries, capital gains are taxable. However, owner-occupiers also benefit from various degrees of tax exemptions after a number of years of occupation.
Three percent of prepaid capital maximum.
In the first 10 years of the loan.