5 December 2023Mortgage Insights For Expats 2024

So, you’ve fallen in love with the Netherlands, and now you’re eyeing a little piece of it to call your own. But hold on tight, because as we step into 2024, the Dutch mortgage game is changing faster than you can say “stroopwafel.”

Navigating the complexities of real estate and mortgages can be challenging, but fear not – we’ve got your back. Whether you’re a first-time buyer or a seasoned investor, our team is here to guide you through the process, ensuring a smooth and informed journey towards making your Dutch dream home a reality.

2023 has been less turbulent than the preceding years. Interest rates have been quite consistent, and there have been no spikes in energy prices. But, that isn’t to say that there are some changes happening in the coming year that could benefit you.

If we take the perspective of the government, there are two important factors about their incoming regulations:

• Making houses more affordable, especially for starters
• A large focus on sustainability also reflected in the bank guidelines

1. The Transfer Tax discount will increase

People under the age of 35 do not have to pay transfer tax if they purchase a house below € 510,000. This only counts if you haven’t made use of this advantage in the past. This is positive news because in 2023 the purchase price was limited to houses below the value of € 440,000.

2. The National Mortgage Guarantee limit will increase

If you buy a house with a purchase price or value below € 435,000 you can claim a mortgage with the NHG (in 2023 the limit was € 405,000). This is positive news because the NHG gives you the option to claim better mortgage conditions.

3. Single home purchasers are able to borrow more

Individuals wishing to purchase a home on their own are able to borrow € 16,000 more in 2024 (based on an income of at least € 28,000). This is a new initiative with the reasoning that single person households have lower costs than other households.

4. The one-time gift limit will be abolished

In 2023 parents were allowed to gift their children € 27,231 (tax free) for the purchase of a property. In 2024 the government has removed this initiative. It is possible to make use of the one-time € 31,813 tax-free gift option (for the incentive, the funds have to come from your parents, and have to be under 39 years of age)

Sustainability has become a larger focus than ever, and this is also seen in how the government handles mortgages on new, and existing homes. Two important details to know going forward are:

1. Buying a new home: Depending on the energy label of the home you wish to purchase, there is potential to borrow an additional € 5,000 (label C, or D), to a maximum of € 50,000 (label A++++ with a 10-year energy performance guarantee), on top of your maximum borrowing capacity.
2. Renovating your existing home: Depending on your current energy level, you may be able to borrow up to €20,000 more if you are renovating your home with sustainable initiatives.

Having a favourable energy will not only save you energy costs, but additionally, lenders also provide a favourable interest rate to houses with higher energy labels, lowering your monthly costs.

Ready to make a plan? Give us a call! Let’s plot the course together – we’ve got the roadmap to make your plan a reality.