close

Mortgages in 2018: What is going to change?

Mortgages in 2018: What is going to change?

Finsens Mortgages specialises in financial planning for individuals and families in the Netherlands and provides full support during the entire mortgage process, from start to finish.

A new year means updated rules and requirements regarding buying a house and receiving a mortgage. In this article, we will discuss the most important changes which will come into effect as of January 1, 2018. If you are planning on buying a house, it may be wise to either succeed in doing so within the next couple of months or wait until 2018, depending on your situation.

Maximum mortgage

This year is the final year that it is possible to partly finance the additional costs of buying a house and arranging a mortgage by lending 101 percent of a house's market value. For example: if you buy a house with a market value of 300.000 euros, it is possible to cover additional costs of 3.000 euros by receiving a mortgage of 303.000 euros.

As of January 1, 2018, the maximum mortgage will be 100 percent of the market value. This means that any additional costs will need to be financed with your own savings. The government stated that the 100 percent loan-to-value is the bottom line for the future, which means no further reductions will take place.

Tax rebate on mortgage interest

In 2017, homeowners in the highest tax bracket (income above 67.072 euros) can get a tax rebate for the paid interest of their mortgage at a tax rate of 50 percent. In 2018, this rate will be limited to 49,5 percent and in 2019 this will be 49 percent. This means the fiscal advantage will become lower.

Based on the plans of the new coalition, this reduction will accelerate annually from 2020 by three percent, which means that in 2023 the tax rebate will be similar to the lowest tax rate, which will be 36,93 percent.

Double-income couples

Families with a double income can get a higher mortgage in 2018. Currently, the maximum mortgage is determined by calculating only 60 percent of the lower income of two salaries. This rule safeguards banks from interest and repayment problems should one partner’s income suddenly stop, meaning the couple will not be able to make their monthly payments.

In 2018, this maximum will increase from 60 to 70 percent, which means double-income couples can get, on average, 10.000-20.000 euros more for their mortgage.

The WOZ value

The value estimated by the municipality for your main residence, known as the WOZ value of your house, will increase in 2018. The estimated increase is five to seven percent. Be aware that this will result in higher taxes imposed by the municipality on homeowners.

Residual debt financing

During the crisis, a special arrangement was created due to falling house prices. Many homeowners had an outstanding mortgage which was greater than the value of their house.

With this special arrangement, it became possible to finance the residual debt (mortgage value minus home value) in a “fiscal friendly” manner when you sold your house. People in this situation were able to deduct the interest payments from their taxable income.

This is still possible, however, if the sale of your home results in a residual debt, it should be transferred from the seller to the buyer at a notary before January 1, 2018.

Do you need more information about your own particular situation? Contact Finsens Mortgages by filling in the form below.

After clicking submit, the information you have given will be shared with the author / business partner in line with our Privacy Policy

CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
Henk

Author

Henk van Seijen

With 20 years of experience Henk van Seijen is the professional to contact mortgages and financial planning. He is partner at Finsens.

Read more

JOIN THE CONVERSATION (2)

COMMENTS

Leave a comment

AMBERERIN 09:30 | 26 January 2019

Hi everyone am AMBER ERIN, I do hope my post gets read and hopefully helps somebody along the line.i will never forget the help the wonderful spell caster Dr Larry render to me in my marital life. i have been married for 4 years now and my husband and i love each other very dearly . after 4 years of our marriage my husband suddenly change he was having an affair with a lady outside, i notice it then i was praying for divine intervention but nothing happen. my husband just came home one day he pick up his things and left me and the kids to his mistress house.. At this time i was confuse not knowing what to do. i was so depressed and had to tell a friend who told me how a spiritualist helped her out with her marital problems so i contacted him and i told him my problem and after he made some consultations he told me what went wrong with my husband and how it happened, that he will restore my marriage but i never believe him. To my greatest surprise 3 days after he has cast the spell my husband came to my office begging me on his knees that i should find a place in my heart to forgive him that he is very sorry for everything he has done to me and the kids .... now am happy we living happily with my husband and kids...thanks to the help of the great Spiritualist Dr Larry, contact him with any problem and am sure he will help email assurancesolutionhome@gmail.com website https://assurancesolutionhome.blogspot.com http://assurancesolutionhome.website2.me/ whatsapp him on +1(424)-261-8520

AMBERERIN 09:30 | 26 January 2019

Hi everyone am AMBER ERIN, I do hope my post gets read and hopefully helps somebody along the line.i will never forget the help the wonderful spell caster Dr Larry render to me in my marital life. i have been married for 4 years now and my husband and i love each other very dearly . after 4 years of our marriage my husband suddenly change he was having an affair with a lady outside, i notice it then i was praying for divine intervention but nothing happen. my husband just came home one day he pick up his things and left me and the kids to his mistress house.. At this time i was confuse not knowing what to do. i was so depressed and had to tell a friend who told me how a spiritualist helped her out with her marital problems so i contacted him and i told him my problem and after he made some consultations he told me what went wrong with my husband and how it happened, that he will restore my marriage but i never believe him. To my greatest surprise 3 days after he has cast the spell my husband came to my office begging me on his knees that i should find a place in my heart to forgive him that he is very sorry for everything he has done to me and the kids .... now am happy we living happily with my husband and kids...thanks to the help of the great Spiritualist Dr Larry, contact him with any problem and am sure he will help email assurancesolutionhome@gmail.com website https://assurancesolutionhome.blogspot.com http://assurancesolutionhome.website2.me/ whatsapp him on +1(424)-261-8520