Are you planning to take out a mortgage in 2018? Then it is wise to read it well now, so that you know what changes you have to take into account. A lot is going to change in the mortgage field. For example, home buyers will soon be able to borrow up to 100% of the home value. The maximum mortgage is therefore going down. In addition, the NHG limit will be raised and two-income households will be allowed to borrow a little more. Below we have placed the 5 biggest changes.
Mortgage to 100%
The main change in 2018 is that the maximum mortgage sum will fall to 100% of the home value. Now that is still 101%. The bottom line is that home buyers cannot borrow more than the home is worth. All additional costs must be paid out of pocket.
From 2018, double-income households can borrow more money for a home again. The second income then counts for 70%. That was only 60% in 2017.
The NHG limit is also going up. NHG stands for ‘National Mortgage Guarantee’. With a NHG mortgage you take out a safe mortgage. Do you want to take out this mortgage in 2018? Then you can borrow up to a maximum amount of 265,000 dollars. For homes that are equipped with energy-saving facilities, you can borrow up to 280,900 dollars with a mortgage with NHG.
Mortgage interest deduction
As you may already know, the maximum mortgage interest deduction is reduced annually. In 2017, the deduction is still 50%. From 2018 this will be reduced to 49.5%. The bottom line is that people with a low or middle income do not notice it.
Notional rental value
The notional rental value is a tax that the government levies on the possession of an owner-occupied home. The notional rental value will be reduced to 0.60% in 2018. This is compensation for the reduction of the maximum mortgage interest deduction.