Dutch Mortgages

  • Aegon is one of the largest non-bank mortgage originators and a household name

  • We manage around € 28bln* of Dutch Mortgages for pension funds and insurance companies

  • We have 28 years of experience

  • Mortgages remain very attractive in this volatile market

Learn more on investing in Dutch Mortgages here >

Dutch residential mortgages versus alternatives

Attractive risk-adjusted return

4.6% yield**

Aegon Dutch Mortgages Strategy has higher yields vs assets with a comparable credit rating - internal AA rating***

Low capital charge for pension and insurance investors

Low capital requirements make it an attractive strategy for matching portfolios 

Natural duration hedge & additional diversification

Mortages are a natural long duration hedge and offer exposure to consumer risks enabling further diversification


Other alternatives are sometimes very complex. Mortgages offer a simple and time tested entry point to direct lending to consumers.

Institutional investors face a challenging low interest rate environment

Low rates on government bonds lead to a search for safe alternatives

Low expected returns on government bonds


Lack of safe alternatives with higher risk adjusted yields

Fixed income alternatives can be hard to implement

Mortgage impairments have consistently been low




** Average of France, UK, Spain, Portugal, Italy, Belgium.


Due to a high payment discipline of Dutch borrowers losses on Dutch mortgages have always been extremely low.

Maximum losses per annum in Dutch Mortgages strategy amount to 0.3bps, with total losses since inception below 1bp of current AUM.


Past performance is not indicative of future results.

Source: Aegon AM. As at 30-06-2023.

Dutch residential mortgages – perceived concerns by international investors

Risk - Defaults & market structure


Healthy economy and debt levels

High home ownership, supported by government, seen as important pillar for building wealth, leading to a culture of consistent mortgage payment.

Well regulated market & government guarantees and incentives

Origination is governed by Code of Conduct which is part of the Dutch Law (sets limits on Debt Service-to-Income). 

Tax treatment incentivizes annuity mortgages, reducing risk over time. Leading to ± 50% market share of annuity mortgages.

Robust origination process & Strong legal position of lenders

Must meet Aegon’s and national underwriting criteria, strict loan to income criteria, credit check and fraud prevention.

Lenders can repossess and sell property e.g. by public auction and have recourse to other wealth. No court order required for repossession.

Risk - Prepayments

Extensive scenario planning and shareable research

Given the large exposure of Dutch Mortgages of our own balance sheet, we have extensively researched the impact of several scenarios and are happy to share this research with our clients.

DMF uses a dynamic CPR model

An extensive model in combination with loan level data is used to forecast a Conditional Prepayment Rate (CPR).

Liquidity and accessibility

Our structure makes subscriptions easy 

Transparent and investor friendly structures make Dutch Mortgages an accessible asset class.

Clients can invest through funds and segregated managed accounts.



Client servicing and reporting

We distribute monthly reports and organize an annual meeting for participants.

Additional liquidity

Large pools of Dutch Mortgage investments provide investors additional liquidity.

Aegon & Investors - alignment of interest

Aegon is one of the largest non-bank mortgage lenders in the Netherlands

Part of Aegon Ltd, a global insurance company and asset manager.


Aegon entities have significant exposure to the same strategy

Identical risk-return profile for Aegon entities and institutional investors creates alignment of interest. (Vertical Slice of mortgage production for fair distribution).

ESG focus with Aegon Dutch Mortgages

Aegon AM has a 21 strong Responsible Investment Team, that is responsible for policies on exclusions, engagements, and helps with ESG integration in the investment process. 

Supporting our borrowers in times of need

  • The originator offers customers experiencing financial difficulties various options, such as budget coaching and job coaching.

  • The originator have a humane special servicing process, focussing on constructive work out scenarios with customers. 

Actively help transition to a sustainable future

  • The originator helps customers make their houses more sustainable and improve their energy labels.

  • Customers can take out sustainability loans to install energy-saving measures, such as solar panels or double glazing in their house.

  • For energy-efficient houses, customers can obtain a higher mortgage amount (within the affordability limits).


Past performance is not indicative of future results.


* Assets under Management per 31-03-23 based on market value

** Yield per 28-04-23 

*** Internal rating model based on inputs from Moody’s and Fitch