A micro view on home equity withdrawal and its determinants. Evidence from Dutch households

Published: Jan. 1, 2010, 11 a.m.

b'Home equity is the most important part of a household portfolio, but only recently has it become more accessible through innovations in the mortgage market and financial\\nderegulation. This study looks at the factors driving home equity withdrawal on a household level using Dutch survey data and assesses to which degree different theoretical predictions can be empirically supported. There is little evidence that equity withdrawal is used as a buffer against adverse income shocks, with financial motives and life-cycle effects likely to dominate a household\\u2019s decision. Finally, the study provides first evidence of the impact of\\nchanging supply side conditions on home equity withdrawal.'