EMF ECBC: Enhancing Single Market Competitiveness through a 28th Regime to Support a Harmonised European Mortgage Framework
The European Mortgage Federation – European Covered Bond Council (EMF-ECBC) has today published a strategic pathway designed to develop a more integrated, efficient and competitive European mortgage market, reinforcing the Single Market and supporting the EU’s broader economic, social and climate objectives.
A Stronger, More Cohesive Single Market for Housing Finance
The EU’s mortgage markets, which represent more than 40% of EU GDP, play a fundamental role in financing households, supporting financial stability and enabling the effective transmission of monetary policy. As such, the EMF‑ECBC argues that a more harmonised European framework would promote:
- Greater competitiveness and efficiency across Member States;
- Improved consumer outcomes through better access to homeownership;
- Enhanced regulatory and market convergence; and
- A deeper and more integrated Savings & Investment Union.
Building on the strong foundations of the Mortgage Credit Directive (MCD) and targeted adjustments within the European implementation of Basel III, a clear path emerges for aligning national best practices and encouraging a coherent set of common market features.
Introducing a European “28th Regime” Mortgage Guarantee Scheme
At the centre of the EMF-ECBC strategic pathway is a proposal for a European‑level mortgage guarantee scheme, designed as a 28th regime to complement already successful national public‑private guarantee systems. Building on decades of proven experience in countries such as Italy, France, the Netherlands, Romania and Greece, the proposed European guarantee scheme would:
- Enhance convergence in retail lending and funding best practices, as well as data disclosure, in the context of the Savings and Investment Union.
- Facilitate access to affordable and sustainable mortgages, while supporting Member States in the effective implementation of the Energy Performance of Buildings Directive (EPBD).
- Scale up private capital towards strategic objectives through enhanced risk-sharing mechanisms with public institutions.
- Expand and facilitate access to housing finance and energy renovation, particularly for young people, first-time buyers, low-income households, single-parent families and elderly borrowers.
- Strengthen the competitiveness of European lenders by optimising capital requirements and reducing execution risks.
- Promote sustainability across the housing value chain, including SMEs and consumer lending, notably through the development of energy-efficient renovation and green mortgage standards.
- Support the construction, renovation and rental housing sectors to ensure adequate housing supply and accelerate decarbonisation.
- Reinforce financial stability while maintaining respect for fiscal constraints.
- Enhance Europe’s leadership and attractiveness within the global investor base.
Unlocking Housing Affordability and Social Mobility
The initiative highlights that many governments face limited fiscal space due to high public debt and rigid budgets. Guarantee schemes therefore offer a cost‑effective and fiscally responsible alternative to traditional expenditure-based housing programmes. A well-designed European guarantee would act as a powerful social mobility mechanism, facilitating access to affordable and sustainable housing while encouraging private investment and supporting the broader residential construction sector.
Catalysing Market Integration and Capital Markets Development
Beyond retail mortgage lending, a more harmonised European mortgage framework would strengthen banks’ balance sheets and improve the efficiency of capital markets funding — benefiting instruments such as covered bonds, securitisations and sustainable debt. This would further enhance the competitiveness of European lenders globally.
A Complementary Initiative to Existing EU Tools
The proposed 28th regime mortgage guarantee is intended as a market-shaping initiative, complementing the existing InvestEU guarantees, which primarily serve as wholesale de-risking mechanisms. The new scheme would directly reshape retail mortgage markets, improving access to mortgage loans and reduce structural barriers to homeownership across economic cycles.
Commenting on the publication, EMF-ECBC Secretary General, Luca Bertalot said:
“This strategic pathway sets out a vision for strengthening the competitiveness of the EU Single Market by advancing toward a more harmonised European mortgage framework. At its core is the proposal for a European ‘28th regime’ mortgage guarantee — an initiative designed to improve access to homeownership, enhance financial stability and mobilise private capital, all while respecting the fiscal constraints faced by many Member States.”
Contact:
Luca Bertalot
Secretary General
Tel: +32 2 285 40 35