AFM working visit in 2018: mortgage market under review


The AFM carried out a supervisory visit to the Caribbean Netherlands in October. During this visit, the AFM met with various institutions and relevant stakeholders. The findings of the 2018 Market Monitor, payment arrears and the Wwft BES were among the important topics discussed. The AFM also used its working visit to expand its knowledge of the mortgage market.

The mortgage market

The mortgage market in the Caribbean Netherlands is different from the market in the Netherlands. There are currently 11 providers with around 2,000 mortgages outstanding in the Caribbean Netherlands. Around 16% of the households in the Caribbean Netherlands have a mortgage. Our interviews revealed that the maximum LTV permitted by the providers is significantly lower than in the Netherlands, and also that the interest rate is set in a different way. Market parties stated that the interest rate has been declining for a long time. The AFM stated that it is important to assess the impact on customers of an increase in interest rates. If interest rates rise, customers could have difficulty in meeting their payments. The AFM will decide on its actions with respect to the mortgage market in the coming period.

Other activities during the working visit

  • The AFM’s working visit also involved the following: on-site investigations of potential illegal financial services providers
  • a presentation to compliance officers on the role of compliance at institutions
  • a discussion with the Government Representative
  • consultation with the BBA
  • attendance at the ‘Technisch Overleg’: the consultation between the supervisors CBCS, CBA, DNB and AFM. The AFM gave a presentation here on data-driven supervision
  • consultation with Unkobon.

The next working visit is scheduled for May 2019.

The AFM is committed to promoting fair and transparent financial markets.

As an independent market conduct authority, we contribute to a sustainable financial system and prosperity in the Netherlands.

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