The major changes coming for Dutch mortgages in 2024

2023 has been less turbulent than the preceding years in terms of mortgages. Interest rates have been quite consistent and there have been no spikes in energy prices. But, that isn’t to say that there aren’t some changes happening in the coming year that could benefit you.

Opportunities in 2024

If we take the perspective of the Dutch government into account, there are two important factors that play into their incoming regulations: making houses more affordable (especially for first-time buyers) and putting a large focus on sustainability. Here's what's changing in 2024:

1. The transfer tax discount will increase

One major change to mortgages in 2024 is regarding the transfer tax. People under the age of 35 do not have to pay transfer tax if they purchase a house for less than 510.000 euros. However, this only counts if you haven’t made use of this advantage in the past. This is positive news because, in 2023, the discount was limited to houses below the value of 440.000 euros.

2. The National Mortgage Guarantee (NHG) limit will increase

If you buy a house with a purchase price or value below 435.000 euros in 2024, you can claim a mortgage with the Nationale Hypotheek Guarantee (NHG). The limit in 2023 was 405.000 euros. This is positive news because the NHG gives you the option to claim better mortgage conditions.

3. Single home purchasers are able to borrow more

In 2024, individuals wishing to purchase a home on their own are able to borrow 16.000 euros more based on an annual income of at least 28.000 euros. This is a new initiative with the reasoning that single person households have lower costs than other households.

4. The one-time gift limit will be abolished

In 2023, parents were allowed to gift their children 27.231 euros (tax-free) for the purchase of a property. Next year, however, the government will remove this initiative. 

Next to this, it is nice for you to know that there is still an option available. There is a separate initiative that will still run, where parents can gift their children (up to age 39) a tax-free gift of 31.813 euros that can be used for any purpose, which includes purchasing a home. As this is a general-purpose gift, it is restricted to one-time use.

5. Sustainability and borrowing power

Sustainability has become a larger focus than ever, and this is also seen in how the government handles mortgages on new and existing homes in 2024.

Two important details to know going forward are:

• Buying a new home: Depending on the energy label of the home you wish to purchase, there is potential to borrow an additional 5.000 euros (label C or D) to a maximum of 50.000 euros (label A++++ with a 10-year energy performance guarantee) - on top of your maximum borrowing capacity.
• Renovating your existing home: Depending on your current energy level, you may be able to borrow up to 20.000 euros more if you are renovating your home with sustainable initiatives.

Overall, having an energy-efficient home will not only save you energy costs but also on other costs. For instance, lenders provide favourable interest rates to houses with higher energy labels, which can lower your monthly costs.

Take out a mortgage in 2024

Depending on your unique situation, 2024 might be the best year for you to buy a home in the Netherlands. First-time buyers and single homeowners will have more advantages than in previous years and you will be able to borrow more money if you opt for an energy-efficient home.