In an attempt to make the housing market more accessible for first-time buyers, the Dutch government will make it easier for prospective buyers to take out larger mortgages from 2023, and is looking to set up a scheme that provides financial support for those hoping to buy property but struggling to finance the purchase. 

New rules for mortgages in 2023

According to recent figures from the Netherlands Bureau for Economic Policy Analysis (CPB), many prospective buyers should be able to take out bigger mortgages from 2023. If the average interest rate on Dutch mortgages remains the same next year, and if salaries rise by the 3,7 percent predicted by the CPB, then most households will be able to borrow up to an additional 10.000 euros compared to this year, NOS reports.

In addition to these changes, the Dutch government has agreed that, for couples who choose to buy a home together, the full amount of both salaries will be taken into account when calculating the maximum mortgage. 

While this news has been welcomed by many, it’s worth noting that nothing has been guaranteed. Firstly, Statistics Netherlands (CBS) reports that salaries increased by just 3,5 percent in October, suggesting that the CPB’s figures are overly optimistic. Furthermore, the additional cash will only be available if mortgage interest rates remain the same, which is unlikely considering they have already risen sharply this year. 

Dutch government's fund to financially support first-time buyers

In addition to these changes to mortgages, the Dutch government is also setting up a fund to help individuals cover the cost of buying a house in the Netherlands. At the request of the Christian Democratic Appeal (CDA), the cabinet will make 40 million euros available for the new National Fund for Affordable Owner-Occupied Homes (Nationaal Fonds Betaalbare Koopwoningen).

"Everyone in the Netherlands should be able to live affordably," says the CDA's Jaco Geurts. “However, owner-occupied homes have become unaffordable for an increasing group of people. It is especially difficult for first-time buyers to find a home for sale. They need a helping hand,” he told RTL Nieuws.

According to the AD, “individuals and families with a gross annual income between 40.000 and 65.000 euros will soon be able to receive a discount of up to 75.000 euros on the purchase of a new-build home.” One key detail of the fund, however, is that the money as well as a proportion of any profit must be repaid once the property has been sold. If the property has depreciated in value, then the amount to be repaid will be reduced.