Why the European mortgage market is facing a tipping point

Opinion piece by Jamie Burink, managing director at Akkuro

The FiDA reality: mortgages go digital

With the entry into force of the European Financial Data Access Regulation (FiDA), mortgages, like all other financial products, will soon have to become a packet of bits and thus as transferable as transferring money.

FIDA isn't just about open finance; it embodies Europe's vision for open finance and now makes the concept mandatory. Financial institutions must make all customer data available in standardized, machine-readable formats, making every service portable, comparable, and open to competition.

The current situation allowed for protectionism, but these new rules break that cycle.

A wake-up call for the sector

At the VIP Congress 2025, I was shocked that in a room full of professionals, more than half bankers, only one person vaguely knew what FiDA was. This is worrying, because the impact of FiDA will be greater than that of open banking and will fundamentally change how banks handle customer data, creating real competitive pressure.

I came across one of the best and clearest explanations at Deloitte, which helped me sharpen my thinking about the potential impact of FiDA: a must-read for anyone in the sector: FiDA: Open finance is coming .

Why the mortgage market needs to move

Mortgages are one of the last bastions of local banking. They are large, illiquid, and heavily tied to country-specific processes. But FiDA creates the conditions for mortgages to become transferable and competitive across borders.

Some say switching isn't worth it because of costs like notary and appraisal fees, but that misses the opportunity that arises at the end of the fixed-interest period: a small interest rate improvement can result in thousands of euros in savings over ten years.

Consider the average Dutch house price of €520,369 (source: Hypotheker). An 80% mortgage after your first fixed-rate period means €416,000 outstanding. A 0.1% lower interest rate saves €416 per year; over ten years, that's €4,160, enough to cover typical refinancing costs.

Breaking myths about local barriers

Others are cynical about the supposed impossibility for Dutch notaries to register mortgages for foreign lenders or for appraisers to work with foreign banks. INCORRECT. Why wouldn't they be able to? I haven't heard a valid argument yet. Our home appraisals already follow harmonized, transparent standards. And why shouldn't a Dutch notary be able to register a mortgage on behalf of a foreign bank? Notaries handle cross-border transactions in inheritances and commercial real estate every day. Mortgages are only local because we've decided they should be, not because it's technically or legally impossible.

When price alone isn't enough

Today's consumers want a financial brand they love; banking habits have become part of their identity. My 11-year-old daughter immediately recognized my Revolut card, but had no idea where her own savings and checking accounts were. Loyalty is no longer defined by the brand your parents chose.

True: a mortgage isn't as trivial as a checking account. But switching banks was once unthinkable. That's changed.

What to do now?

For banks:

• Assess your readiness for FIDA's data sharing requirements, not only for compliance but also as a competitive opportunity.

• Explore partnerships to offer cross-border mortgages or refinancing options.

• Review your core banking systems: can they handle portable mortgage data? If not, start modernizing now.
  

For fintechs:

• Build tools that help consumers compare and switch mortgages; the market opportunity is coming.

• Set the standard. The European Commission is leaving this to the market. I'd say: HDN, raise your hand and show that you've been setting this standard in the Netherlands for years. The European version isn't far off.

• See how digital wallets can store and manage mortgage data.
  

For supervisors:

• Ensure that the implementation of FiDA includes clear protocols for cross-border mortgage registration and enforcement.
  

For consumers:

• Start learning what FiDA can do for your financial options. Don't assume you're stuck with your current bank or mortgage terms forever.

The call to action

I don't know if Europe wants this, but the timing is perfect. FIDA is creating the conditions, the technology is ready, and consumers are increasingly mobile. It's all or nothing now.

I've set my own alarm for Q3 2028, when I believe mortgages can realistically become fully portable if the EC's timeline is met and banks transition to financial information service providers.

The real obstacles are mental and cultural, not legal or technical. As my CCO, Eric Euwes, said: "We need a challenger who dares to break with rusty habits and national boundaries. Then the market will open up." CORRECT!