Dutch Tax Blog

Dutch Tax Blog

Higher mortgage 2-income households in 2017

Expat tax matters mortgagePosted by Mike de Gruijl Sun, August 21, 2016 10:46:07

From 2017, two-income households can take out a higher mortgage than currently is the case.

Currently a second income is in taken in to account for half when applying for a mortgage. Next year it will be increased to 60 percent.

The Ministry of Finance confirms that this proposal for consultation was submitted to mortgage lenders and mortgage advisers.

Every year
Every year the Ministry of Finance looks if the rules on mortgage loans have to be adjusted. The proposal to take in account the second income for a higher percentage count is part of that.

Loan to value
Also, next year, according to the VEH (Vereniging Eigen Huis) in some cases it will be possible to get an exception for so-called loan-to-value ratio, the ratio of the amount of the mortgage and the value of the house. Which for this year is 102 percent and will be reduced in 2017 to 101 percent.

The exception applies to buyers and owners of houses that need "necessary improvements to security," said the VEH. This concerns, for example foundation repairs or roof reconstructions.

January 2017

Mortgage lenders and mortgage consultants can respond until 22 September 2016 at the proposal made by the Ministry of Finance. As of January 1, 2017 all new rules will be effectuated.

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