Raun van Ooijen|M.C.J. van Rooij
Mortgage risks, debt literacy and financial advice
Network for Studies on Pensions, Aging and Retirement|University of Groningen|Network for Studies on Pensions, Aging and Retirement|De Nederlandsche Bank
limited understanding mortgage contracts risks involved may contributed outbreak 20072008 financial crisis developed special questionnaire relating mortgage loan decisions financial knowledge financial advice results demonstrate homeowners appear well aware mortgage risks large loans relative home value perceived riskier loans large mortgage payments relative income loans linked investment vehicles homeowners riskier mortgages indicated could encounter financial problems house prices income decline homeowners relatively low debt literacy likely take traditional mortgages principal repayments maturity loan riskier mortgages prevalent among homeowners better understanding loan contracts financially less sophisticated homeowners consulting mortgage brokers hold riskier mortgages