We study the effect of an increase in capital requirements for residential mortgages on mortgage rates and house prices …. Using a difference-in-difference estimator we find that treated banks increase their mortgage rates by 18 basis points …-elasticity of house prices to changes in mortgage rates of 13, in line with predictions from a user cost model …

), whereby the household can default on mortgage repayments, what leads to housing collateral seizure. Foreign-owned banks, that … are subject to risk-sensitive macroprudential capital requirements, take into account not only the mortgage default rate … risk. Therefore, a tightening of LTV requirement should result in only a slight reduction in mortgage lending, coupled with …

have higher mortgage delinquency and charge-off rates and significantly higher probabilities of failure during the last … stronger capital buffers. Our results suggest that there is scope for improved measures of mortgage loan risk that could be …