Mortgage insights for expats in 2023

Opportunities in 2023

Let’s start with the housing market. Although (or maybe, because of) the rise of interest rates, the market is shifting and cooling down - great news for people who’ve been eager to buy a home. We believe 2023 will bring interesting investment opportunities for home buyers.

Also, energy prices are going through the roof. While this might not be your favourite way to spend your money, if you are thinking about options to make your house more sustainable to save energy costs, please note that the government and mortgage providers are there to support you in financing the investments.

If you are making new plans and investigating your mortgage options, it’s good to check out the Mortgage Guidelines for 2023:.

Important changes to the Dutch mortgage system

There are changes for 2023 when it comes to the Dutch mortgage system. We’ve listed the important ones below.

1. The transfer tax discount limit will increase

People under the age of 35 do not have to pay transfer tax if they purchase a house for 440.000 euros or less. This only counts if you haven’t made use of this advantage in the past. This is positive news! Because in 2022, the purchase price was limited to houses below 400.000 euros.

2. The National Mortgage Guarantee limit will increase

If you buy a house with a purchase price or value below 405.000 euros, you can claim a mortgage with the NHG (in 2022, the limit was 355.000 euros). This is also positive news because the NHG gives you the option to claim better mortgage conditions.  

3. Update maximum mortgage calculation

Each year, the government re-evaluates the regulations regarding loan-to-income ratios. For 2023, they decided to (slightly) lower the average borrowing capacity. If you are interested in the impact of this change on your specific situation, please contact a mortgage advisor.

4. The one-time gift limit will decrease

In 2022, parents were allowed to gift their children 106.671 euros (tax-free), to be used to purchase a property. In 2023, the limit of the tax-free gift will decrease to 27.231 euros.

Making your current home sustainable 

Like last year, the Dutch government and mortgage providers will offer solutions to help make homes more sustainable.

Important to know:

• The vast majority of lenders offer an interest discount if a home has a favourable energy label (label A+++ - to B).
• Lenders offer a credit facility purely aimed at energy-efficient-related investments. It is usually a loan of a maximum of 15 years at very favourable rates.

Especially with the current high energy prices, we advise taking the above into consideration.