We calculate each year (per income group) the mortgage amount that can be borrowed as much as possible. In this way the government tries to prevent people from getting into financial problems if something changes to their income or spending pattern. That is why Nibud takes the future into consideration: if people have children and / or want to work less, this has an immediate impact on their purchasing power. Larger expenses or less income must be able to be collected.
From 1 July 2015, the standards will be tightened again and you will be able to borrow even less for a mortgage. In calculating these standards, a standard table is used, the so-called financing burden percentage table, which takes into account purchasing power and mortgage interest. This table has been expanded, because the current historically low interest rates did not fit into the previous table.
A lower interest rate does not mean that you can borrow more
This expansion is important, because with a low interest rate, consumers tend to borrow a higher amount. Yet this is not always wise, because with a lower interest rate you can also deduct less from the tax. With a savings mortgage, it can happen that you lose just as much, or more, per month than when the interest rate is slightly higher.
This year, people with an income up to 28,000 euros per year can borrow 3 to 6.5 percent less than last year. Moreover, as of 1 July, the maximum loan amount for mortgages with interest rates will fall below 3.5 percent, which saves about 5 percent in loan amount. Especially home buyers who take out a mortgage with a National Mortgage Guarantee will notice this. The interest rates are always slightly lower.
The above loan standards are, incidentally, separate from the ‘loan-to-value rule’. This stipulates that a home buyer can not borrow more than 103 percent of the value of his home this year. In the coming years, this percentage will be reduced to 100 percent. The loan-to-value thus determines the absolute maximum that can be borrowed on the basis of the value of the house. In addition, the financial burden percentages table looks at the specific situation of each house buyer.