More mortgage space for sustainability, singles and students | News item

News item | 01-11-2023 | 2:43 PM

As of January 1, 2024, the lending standards for mortgage credit will be changed on a number of points. Households will have more borrowing space to purchase an energy-efficient home and to make their own home more sustainable. In addition, the impact of a student loan on the maximum borrowing space for former students will be determined from 2024 on the basis of the current costs of their student loan, and single people will have more borrowing space.

This is stated in the letter with which Minister Hugo de Jonge, also on behalf of the Minister of Finance and the Minister of Education, Culture and Science, informs the House of Representatives today about the lending standards for mortgage credit from 2024.

Balance between housing needs and financial risks

The government believes it is important that people can finance a home that meets their wishes and personal situation as much as possible. At the same time, purchasing a home with a mortgage should not lead to irresponsible financial risks for households. That is why there are lending standards for mortgages on which Nibud advises the cabinet annually. Because the Central Planning Bureau (CPB) expects wages to rise by 5.2% in 2024, the maximum borrowing capacity for almost all households will be higher next year.

Borrowing space linked to energy label

From next year, more can be borrowed to make homes with poor labels more sustainable. More can be responsibly borrowed for these homes because savings can be made on the energy bill after sustainability. The additional borrowing space is available for homeowners who want to make their purchased home more sustainable and for homeowners who want to make their current home more sustainable. In this way, the minister wants to facilitate the sustainability of owner-occupied homes in a financially responsible manner. The additional borrowing space does not depend on the level of income and replaces the current fixed additional loan amount of € 9,000

In addition to the mortgage, subsidies and the National Heat Fund remain available for sustainability with additional options for homeowners with a low income. In addition, some municipalities offer attractive financing through the Dutch Municipalities Housing Incentive Fund.

Adjustment of borrowing space for former students

From January 1, 2024, the impact of a student loan on the maximum borrowing capacity for former students will be determined based on the current costs of their student loan. This means that – unlike now – the original size of the student loan is no longer taken into account. Last year it was announced that this methodology will be switched to in 2024. Additional repayments on the student loan are therefore better taken into account when determining the maximum mortgage. This provides an accurate picture of the monthly costs associated with a student loan that has been repaid additionally and offers former students more scope to borrow for a home.

In addition, the borrowing space for students who borrow from DUO under the new conditions (with a repayment term of 35 years for student debt) will increase slightly on average. This adjustment will responsibly limit the impact of a student loan on the borrowing space for former students as much as possible.

Extra borrowing space for singles

From next year, singles with an income of at least 28,000 euros will have the option to borrow an additional 16,000 euros. This extra amount offers this group slightly more financial scope when purchasing a home.

The table below shows the additional loan amounts for the purchase of a home and for energy-saving measures per energy label.

Energy label home

Additional amount that may be borrowed for the purchase of a home with the label E, F or G

Additional amount that may be borrowed for energy-saving measures

E, F, G

€0

€20,000

C, D

€5,000

€15,000

A, B

€10,000

€10,000

A+, A++

€20,000

€10,000

A+++

€30,000

€10,000

A++++

€40,000

€0

A++++ with an energy performance guarantee issued for a period of at least ten years

€50,000

€0

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