Good news for starters on the housing market, because they can finally take out a higher mortgage from 2018. In this case it concerns slightly more money and only a mortgage with a so-called ‘National Mortgage Guarantee’. Because the loan standards will be adjusted in 2018, it will be even more difficult for this category to be able to borrow money for a home. That is why the government parties want an exception for starters to be made. For this, only Minister Kajsa Ollongren has yet to approve the cabinet’s plan. Kajsa Ollongren is Minister of Housing.
Borrow 100% of the value of a home in 2018
As you may already know, from 2018 home buyers can finance up to 100% of the home value with a mortgage. The government has already reduced the maximum loan amount in phases to 101% in 2017. All additional costs such as notary costs and transfer tax will be entirely at your own expense in 2018.
The loan amount must remain at 101% for the NHG mortgage
If it is up to the government parties, the loan percentage for consumers who take out an NHG mortgage remains at 101%. Otherwise, many starters are unlikely to opt for a mortgage with NHG. Now only banks are allowed to offer this mortgage for homes with a value up to a maximum of $ 265,000. This mortgage type also has the advantage that the mortgage interest rate is a lot lower than with most other mortgage types. People with this mortgage also have the certainty that if they divorce, they will not be left with a residual debt. This is because it is waived with an NHG mortgage.
Extra premium with NHG mortgage
As a starter, you also have a lot of security with a cheap NHG mortgage. There is something opposite. For example, you must pay a one-off premium worth 1% of the value of the home. And that is often impossible for starters. That is why the government parties want starters to be able to borrow that one percent extra. The one percent must also remain tax deductible. According to Jessica van Eijs, MP of D66, this will give the starter much more rest. And that is also beneficial for the housing market.
And perhaps the NHG premium can be reduced?
The government parties will also examine whether it is possible to lower the premium for NHG mortgages. The premium percentage has increased during the credit crisis. Since the crisis is over, a cut is possible. That says Daniël Koerhuis, member of the VVD. A reduction in the NHG premium would mainly help starters. This makes buying your own home more attractive. In addition, Koerhuis also hopes that student loans have less influence on the amount of the mortgage amount.