Mortgage finance across OECD countries

Mortgage Finance Across OECD Countries

Housing loan markets across OECD countries differ widely due to national preferences and varying policy frameworks. The report offers a comparative overview of these differences and explores their underlying causes.

Variations in Mortgage Structures

The study presents significant discrepancies in mortgage arrangements among OECD nations, focusing on factors such as the prevalence of fixed versus variable interest rates and the average duration of mortgages. These distinctions shape financial stability and accessibility to homeownership.

Policy Influence on Mortgage Outcomes

Government policies play a central role in shaping mortgage markets. The paper suggests that promoting equal access to housing should rely on balanced tax and public spending policies, rather than on costly tax privileges for mortgage borrowers.

“Encouraging inclusive access to housing works best through neutral tax-and-spending programmes rather than expensive tax breaks for mortgage borrowing.”

Balancing Borrower and Lender Rights

As a key contribution, the paper introduces an innovative indicator that assesses the balance between borrower and lender rights. The analysis shows that mortgage markets thrive most where these rights are evenly aligned, rather than disproportionately favoring one side.

Author’s Summary

OECD mortgage markets differ widely, and the healthiest ones balance borrower and lender rights while avoiding policy biases that favor ownership at high fiscal cost.

OECD — 2025-11-06