Friday, December 30 2020 7:31 PM

Will the maximum mortgage amount be reduced in 2021?

There is a good chance that in 2021 the maximum mortgage amount for home buyers in our country will be reduced. Klaas Knot, the president of De Nederlandsche Bank, makes a case for that.

In an interview with Vrij Nederland, Knot says that in 2020 the maximum mortgage amount that can be borrowed compared to the value of the home was already reduced to 106 percent. However, the banker believes that the ratio is still far too high. That is why, according to him, this standard should be adjusted as soon as possible. His arguments: house debts in the Netherlands are very high compared to debts abroad. In other countries, a buyer's own contribution is often expected, after which a mortgage of seventy percent to eighty percent of the value of the home can be provided. On the other hand, it is almost self-evident in our country that people borrow a higher amount than the actual purchase price of the home. Brussels can therefore also blame the Netherlands in connection with the sky-high house debts in this country. Knot's appeal was recently quashed by the cabinet to curb the mortgage deduction with regard to interest.


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