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)

From January 2024, the general transfer (overdrachtsbelasting) tax rate will be 10,4%. 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 2024, the costs of this first property may not exceed 510.000 euros. Buyers ages 35 and over who are going to live in the house themselves pay 2% transfer tax. 

Maximum mortgage value or loan to value (LTV)

In 2024, the maximum mortgage value can be up to 100 percent of the buying price (same as 2023, 2022, 2021, 2020, 2019 and 2018). In 2017, the value was 101 percent and in 2016, it was 102 percent.

Tax-free parental gift

Before 2024, you could use the parental gift tax exemption (schenkinsvrijstelling) for your home. This exemption does no longer exist.  

However, you may be able to use the one-time gift tax exemption (eenmalige verhoogde vrijstelling), which you can make use of only once in your lifetime (from the same donor). In 2024, the amount is 31.813 euros for a purpose of your own choosing. Conditions apply. 

If you are not able to make use of the one-time tax exemption, you can make use of the yearly tax exemption (jaarlijkse vrijstelling). In 2024, parents may gift 6.633 euros tax-free to their child. 

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 2024, the National Mortgage Guarantee (NHG) covers properties with a maximum value of:

  • 435.000 euros for properties without energy-saving features
  • 461.100 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 this handy mortgage calculator (provided by Expat Mortgages), you can calculate the maximum Dutch mortgage amount that you can borrow.

Read also