Mortgages in the Netherlands in 2019 - What’s new?

Finsens, a financial consultancy firm providing services and expert knowledge for expats, tells us what has changed in 2019 when it comes to mortgages in the Netherlands. 

Every year, the conditions and requirements for mortgages are updated. This article will set out the most important changes that came into effect on January 1, 2019. First, however, we will talk shortly about the expectations for the housing market in general.

Expectations for the housing market in 2019

Over the past few years, house prices in the Netherlands have increased significantly. For 2019, the expectation is that house prices will increase further, but not as much as they have the last few years.

ABN AMRO expects the price increase to be 6% in 2019 and 4% in 2020. Furthermore, the expectation is that there will be fewer transactions as well.

At the moment, there are more buyers than there are houses for sale. Because of this, the expectation is that house sellers will wait until they have secured a new property before putting their houses up for sale.

When the house prices decrease, we expect that the gap between offer and demand will diminish, so the market is more balanced, which should result in a higher volume in transactions.

Higher mortgages with NHG

“Nationale Hypotheek Garantie”, also known as NHG, is the guarantee that your mortgage debt will be repaid if you can’t pay it back yourself. For example, if you get a divorce or lose your job and have to sell your house but the outstanding mortgage is higher than the result of the sale.

For more info about mortgages in the Netherlands, contact Finsens!

For 2019, the maximum market value for NHG mortgages has increased up to 290.000 euros in the Netherlands. Last year, it was only possible to get a mortgage with NHG up to a market value of 265.000 euros. Also, the costs of NHG mortgages has been reduced from 1% to 0,9%. So, if you’re looking for a mortgage with NHG for 2019, it’s possible to buy a property with a slightly higher purchase price.

WOZ value

The value estimated by the municipality for your main residence, known as the WOZ value of your house, will increase. Depending on the municipality, the increase is approximately 7,5% to 9,5%. Be aware that this results in higher taxes imposed by the municipality on homeowners.

A higher VAT for 2019

As per January 1, the low VAT tariff has increased by 3%. This low VAT rate mainly applies to food, for example. Previously, this VAT rate was 6%, but per January 2019 it is now 9%. Please note that some residence renovation costs are taxed at the low VAT rate. This means that in 2019, if you are having renovations done, a part of these renovations will be charged a higher VAT rate.

Tax rebate on mortgage interest

In 2018, homeowners in the highest tax bracket (income above 68.000 euros) could get a tax rebate on the paid interest of their mortgage at a tax rate of 49,5%. In 2019, this rate is has been limited to 49%. Based on the plans of the government, this reduction will be accelerated by 3% annually from 2020, which means that in 2023, the tax rebate will be similar to the lowest tax rate, which will be 36,93%.

Higher income for 2019

For all income groups in the Netherlands, the maximum loan capacity will increase in 2019 by approximately 2,9%. You will have more income to pay the mortgage costs with, which means it will be possible to get a higher loan.

The author of this article, Henk van Seijen, is a partner at Finsens. To learn more about mortgages in the Netherlands, contact Finsens: