A Risk Assessment for Residential Property Financing in Germany

In fact, however, an empirical model shows that the growth in credit volumes is considerably weaker than might have been expected under current circumstances. Moreover, data on loan-to-value ratios, amortisations, loan periods and the borrowers themselves give no indication of additional risks. Further tightening of residential property financing is therefore not only unnecessary but would actually have an unfavourable effect on households and banks.