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Dutch mortgage rules

Dutch mortgage rules

On January 1, 2013, new rules for mortgages were introduced to safeguard homebuyers against running into excessive debt.

Mortgages in the Netherlands: New Rules

The changes are listed below, along with more recent updates and other important information about mortgages in the Netherlands.

Tax deduction on interest (renteaftrek)

Only annuities and linear mortgage models are eligible for the tax deduction on interest (renteaftrek), whereby the loan is paid off within 30 years via monthly repayments.

Transfer tax (overdrachtsbelasting)

The transfer tax (overdrachtsbelasting) for residential properties is 2 percent of the buying price. Prior to 2013, it was 6 percent. Other real estate, such as commercial properties, still has a transfer tax of 6 percent. From January 1, 2021, people aged 18-35 who are buying their first property in the Netherlands will not have to pay the transfer tax. From April 1, 2021, the costs of this first property may not exceed 400.000 euros.

Maximum mortgage value or loan to value (LTV)

In 2022, the maximum mortgage value can be up to 100 percent of the buying price (same as 2021, 2020, 2019 and 2018). In 2017, the value was 101 percent and in 2016, it was 102 percent.

Tax-free parental gift

From January 1, 2022, homebuyers aged between 18 and 40 can receive a gift of up to 106.671 euros, tax-free, from their parents or others as a contribution towards buying, renovating or paying the mortgage on a property. The parental gift tax exemption (schenkingsvrijstelling) has been raised and lowered in recent years in response to changes in the housing market.

Increasing an existing mortgage

Conditions for mortgages existing prior to January 1, 2013, remain unchanged, however, if you wish to increase an existing mortgage it will fall under the new rules.

National Mortgage Guarantee (NHG)

In 2022, the National Mortgage Guarantee (NHG) covers properties with a maximum value of:

  • 355.000 euros for properties without energy-saving features
  • 376.300 euros for properties with energy-saving features

First-time home-buyers

On January 1, 2013, the Dutch government eased the mortgage conditions for first-time home-buyers if they expect an increase in income.

Online Dutch mortgage calculator

With the mortgage calculator below (provided by Expat Mortgages), you can calculate the maximum Dutch mortgage amount that you can borrow.

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