In these coronavirus times, it's sometimes hard to keep your head up and stay positive. The pandemic has had a serious impact on all of our lives, and by the looks of it, we aren't going to get rid of it just yet.
But there is some good news for next year too, and we're happy to talk you through it.
2021 will offer possibilities for first-time buyers
The Christmas holidays always prove to be a great time for making plans for the coming year: drink less alcohol, find a job that really gets your blood pumping, and plan that amazing journey to… wherever you like - hopefully it will be possible in 2021!
All that lockdown time you’ve been spending at home combined with traditional end-of-year reflections might inspire you to find a new place. A place where you can live, work and simply enjoy life even more.
Are you dreaming of a new place? Then we've got some good news for you! Because 2021 can be a good year to buy a home.
Last year, the newspapers and the internet were full of articles about how important it is to give newcomers to the housing market a better chance of buying a home. The Dutch government responded to this!
What could this mean for you?
There are 3 important changes to the Dutch mortgage system that will get you some extra buying power:
1. First-time buyers will pay no transfer tax
In the Netherlands, there is a transfer tax of 2 percent when you buy an existing home. This 2 percent transfer tax will lapse for first-time buyers aged between 18 and 35 years. This can save you thousands! But it's worth noting that from April 1, the additional condition of a purchase price up to 400.000 euros will also have to be met to qualify for the exemption.
For example: suppose you buy your first house for 375.000 euros and you are younger than 35 years old, then you will have an advantage of 7.500 euros compared to people older than 35 years.
2. Your double income loan capacity just increased
According to Dutch regulation, your maximum mortgage costs may not exceed a certain percentage of your gross annual income. In Dutch, this is called het financieringslastpercentage. If you would like to buy a house with your partner, currently this percentage is based on the full yearly income of the highest wage and 80% of the lowest wage.
But, from January 1, 2021, lenders include 90 percent of the lowest wage in the calculations. This is 10 percent more than in 2020!
For example: suppose you earn 80.000 euros a year and your partner earns 70.000 euros. In 2020, your allowance would’ve been 136.000 euros, but with the new regulations, the allowance amounts to 143.000 euros - this means a higher borrowing capacity.
3. The Dutch National Mortgage Guarantee increases up to 325.000 euros
If you buy a home up to 325.000 euros, you can claim the National Mortgage Guarantee (NHG). The NHG is unique in Europe, and it helps you get a responsible and affordable mortgage. Problems meeting your payments beyond your control? The NHG will provide a safety net for you and your mortgage lender. And when you buy a home with NHG, your interest can even drop to 1,05 percent for a fixed period of 10 years (currently).
Make 2021 your year
Looking to buy your dream home and settle in the Netherlands? Make 2021 the year you achieve your dreams!
At
Klår Finance, they love making people happy and making dreams come true. Hoping to buy a house in 2021 but need a little help and guidance? Don't hesitate to
contact Klår and take your first step on the journey to buying your dream home!