News item | 03-11-2022 | 11:40
Most households will be able to borrow slightly more to purchase a home in 2023, if expected wage increases are taken into account. For dual earners, the second income will count in full from 2023 when determining the maximum mortgage. In addition, the government plans to adjust the standards in 2024 to take into account student debts and the energy efficiency of the home.
Hugo de Jonge, Minister for Housing and Spatial Planning: “Most households will be able to borrow a little more responsibly for a home next year. This is mainly due to the expected wage increases and the purchasing power measures taken by the government. It is important that people can buy a house that matches their wishes and personal situation as much as possible. At the same time, households must have enough money left over for other essential expenses such as groceries and energy. The annual update of the lending standards is a good system to prevent home buyers from borrowing too much and being unable to pay their mortgage.”
Maximum loan space
If the wage increase expected by the CPB of 3.7% and a constant interest rate are taken into account, most households will be able to borrow slightly more next year. Without a wage increase, the maximum borrowing capacity for all households will fall. Changes in the interest rate also affect the amount of the mortgage. Mortgage interest rates have risen sharply in the past year, which has had a negative impact on the maximum amount of the mortgage loan. As usual, the government has set the lending standards for 2023 on the basis of the independent advice of the National Institute for Budget Information (Nibud).
Fully count second income
From 2023, mortgage lenders can include the second income in full when determining the maximum mortgage for two-income couples. Nibud advised this. This year, the second income still counts for 90%. Giving more weight to the second income of two-income couples prevents the borrowing capacity of two-income couples from declining as a result of the phasing out of the transferability of the general tax credit. The impact of this change on the borrowing space is limited. Two-income households can borrow about € 3,200 more on average over all incomes than when the second income is included for 90%.
New method taking into account student debts
The government intends to switch to a new method in 2024 to determine the influence of student debts on the borrowing capacity of former students. The coalition agreement stipulates that the current state of the student debt will be decisive for first-time buyers when applying for a mortgage. This should offer former students who have made extra repayments more room to borrow.
Nibud has established that the current method provides an accurate picture of the monthly costs associated with a student loan when a former student has not made extra repayments – in addition to the regular repayments – on the student debt. But in situations in which extra repayments have been made on the student debt, the current method can lead to an unnecessary limitation of the borrowing space. That is why Nibud advises developing the option of switching to a method based on the current monthly payments of the student loan as of 1 January 2024.
Differentiation of lending standards according to energy consumption
From 2024, the government plans to take greater account of the varying energy consumption of homes when determining the maximum mortgage. When purchasing a home with low energy consumption or when taking energy-saving measures, consumers can responsibly take out a higher mortgage. The monthly energy costs will be relatively low for this consumer. Nibud advises that you carefully consider a few points regarding the use of the energy label during the elaboration. The Ministries of the Interior and Kingdom Relations (BZK) and Finance will work out these points together with the sector.