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A micro view on home equity withdrawal and its determinants. Evidence from Dutch households

Listed author(s):
  • Ebner, André

Home equity is the most important part of a household portfolio, but only recently has it become more accessible through innovations in the mortgage market and financial deregulation. This study looks at the factors driving home equity withdrawal on a household level using Dutch survey data and assesses to which degree different theoretical predictions can be empirically supported. There is little evidence that equity withdrawal is used as a buffer against adverse income shocks, with financial motives and life-cycle effects likely to dominate a household’s decision. Finally, the study provides first evidence of the impact of changing supply side conditions on home equity withdrawal.

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Paper provided by University of Munich, Department of Economics in its series Discussion Papers in Economics with number 11309.

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Date of creation: Jan 2010
Handle: RePEc:lmu:muenec:11309
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