MORTGAGES, IMMIGRANTS AND DISCRIMINATION: AN ANALYSIS OF THE INTEREST RATES IN SPAIN

In this paper, we use a unique data set on granted mortgages to investigate whether immigrant and nativeborrowers are treated differently by lenders in the Spanish mortgage market. We observe that immigrantborrowers are charged substantially higher interest rates in their mortgages than their native counterparts.These differentials remain high and significant even after controlling for differences in creditworthiness andother factors. Further analyses based on the decomposition of the native–immigrant interest rate gap revealthat the differences in observable factors only account for 12% of the gap. The empirical evidence we find heresuggests that these differentials are due to discrimination.

Dr. Josep Maria Raya

Publicat per Dr. Josep Maria Raya

Dr.Josep Maria Raya es profesor titular de la Escola Universitaria del Maresme (Universitat Pompeu Fabra). Su investigación se centra en economía de la vivienda y economía del turismo.

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