Raun van Ooijen|Maarten <!>van Rooij
Mortgage Risks, Debt Literacy and Financial Advice
University of Groningen|De Nederlandsche Bank|Network for Studies on Pensions, Aging and Retirement
limited understanding mortgage contracts risks involved may contributed origination financial crisis designed special questionnaire relate mortgage loan decisions financial literacy financial advice findings show homeowners seem well aware mortgage risks loans perceived risky large compared home value entail high mortgage payments compared income linked investment vehicles homeowners riskier mortgages know may encounter financial problems housing prices income declines individuals lower level financial literacy likely take traditional mortgages pay principal maturity riskier mortgages prevalent among homeowners better understanding loan contracts financially less sophisticated homeowners consult intermediaries professional financial advice hold risky mortgages well