It looks like 2024 is bringing a whole lot of changes — and the best part? More beneficial mortgage laws for first-time house hunters have finally arrived! 🏡✨
Buying a house in the Netherlands is definitely no easy feat, especially with a rampant housing crisis and skyrocketing prices.
However, for first-time buyers, there’s a small glimmer of light: Dutch mortgage laws are set to be overhauled in 2024.
READ MORE | 8 steps to getting a mortgage and buying a house in the Netherlands for expats
Let’s run through these changes and find out what they mean for you — and your wallet! 👇
1. More borrowing power for sustainable energy labels
First things first, err… what’s an energy label? Simply put, the EU classifies homes on an A-to-G scale of how energy efficient they are, with houses rated A and above being the most energy-efficient.
READ MORE | Utilities in the Netherlands: the ultimate guide to gas, electricity, and water
New Dutch mortgage laws for 2024 will allow prospective homeowners to borrow more money if their energy label is sufficiently high.
And just how much “more money” are we talking about? Well, homes rated A++++ can borrow a whopping €50,000 — and that’s ten times as much as those with an energy label C or D.
2. Increased borrowing power for singles
There’s yet another change chugging down the tracks that’ll affect how much money you can borrow in 2024 — but this one’s for singles only. 🙅🏻♀️
From next year, singles earning at least €28,000 will be able to borrow an additional €16,000, according to RTL Nieuws.
3. No transfer tax for those younger than 35
When transferring ownership of an existing property from one owner to another, the buyer is generally required to pay a transfer tax.
Come 2024, however, this transfer tax will be scrapped for all purchase prices under €510,000 — provided that the buyer is younger than 35.
This is a €70,000 increase from the previous transfer exemption limit of €440,000 in 2023.
4. Increased National Mortgage Guarantee limit
If you’re on the hunt for a Dutch home, it’s advised that you register with the National Mortgage Guarantee or Nationale Hypotheek Garantie (NHG).
READ MORE | What is the Dutch National Mortgage Guarantee (NHG)?
This guarantee will afford you protection if you’re unable to pay your mortgage (due to involuntary unemployment or divorce) or if you’re being forced to sell your house for less than your mortgage balance.
As of 2024, the NHG’s limit on house prices will rise an additional €30,000 — to €435,000.
5. No more tax-free donations to family mortgages
In the Netherlands, relatives used to be able to make tax-free donations (dubbed ‘Jubelton’) to their relatives, in order to help finance their home.
Whilst parents will still be able to make a one-off tax-free donation to their children, they will no longer be able to donate tax-free sums to their grandchildren, cousins, or other relatives.
One bright spark, however? For parent-to-children transactions, the limit had been raised to €31,813.
What do you think of the new mortgage rules heading our way in 2024? Tell us your thoughts in the comments below!