All posts by Billy Eberle

Maximum mortgage loan goes down again

We calculate each year (per income group) the mortgage amount that can be borrowed as much as possible. In this way the government tries to prevent people from getting into financial problems if something changes to their income or spending pattern. That is why Nibud takes the future into consideration: if people have children and / or want to work less, this has an immediate impact on their purchasing power. Larger expenses or less income must be able to be collected.

From 1 July 2015, the standards will be tightened again and you will be able to borrow even less for a mortgage. In calculating these standards, a standard table is used, the so-called financing burden percentage table, which takes into account purchasing power and mortgage interest. This table has been expanded, because the current historically low interest rates did not fit into the previous table.

A lower interest rate does not mean that you can borrow more

This expansion is important, because with a low interest rate, consumers tend to borrow a higher amount. Yet this is not always wise, because with a lower interest rate you can also deduct less from the tax. With a savings mortgage, it can happen that you lose just as much, or more, per month than when the interest rate is slightly higher.

This year, people with an income up to 28,000 euros per year can borrow 3 to 6.5 percent less than last year. Moreover, as of 1 July, the maximum loan amount for mortgages with interest rates will fall below 3.5 percent, which saves about 5 percent in loan amount. Especially home buyers who take out a mortgage with a National Mortgage Guarantee will notice this. The interest rates are always slightly lower.


The above loan standards are, incidentally, separate from the ‘loan-to-value rule’. This stipulates that a home buyer can not borrow more than 103 percent of the value of his home this year. In the coming years, this percentage will be reduced to 100 percent. The loan-to-value thus determines the absolute maximum that can be borrowed on the basis of the value of the house. In addition, the financial burden percentages table looks at the specific situation of each house buyer.


More new mortgage loans than repayments

In the second and third quarter of 2015, more new mortgages were taken out than were repaid. In the third quarter, for example, 2.8 billion euros more was paid in mortgages than repaid.

This is probably due to the termination of the gift tax exemption on 1 January 2015 and because the housing market is picking up again. The donation exemption ensured that people started to pay more and that new mortgages could be closed for a lower amount. Due to the improving housing market, almost 30 percent more homes were sold in the third quarter of 2015 than in the same period in 2014. Selling prices also rose by 2.9 percent in the third quarter.

Banks provide most mortgages

The market share of the banks on the mortgage market also rose sharply: nine percent compared to 2010. Their share now stands at 61 percent of all mortgages. Different intermediaries also have a share in the current outstanding mortgages, but since 2010 considerably fewer mortgages have been taken out through these intermediaries.

Insurers and investment institutions also have a share of the mortgage market: the insurers hold about seven percent of the mortgages and investment institutions about 2 percent. This has been a significant increase since 2010. At that time, insurers were still at over three percent, for example.


With repayment-free loan in trouble

Do you currently have a repayment-free credit? Then your financial situation will change in the coming period. This type of credit is in fact converted by the lenders to a form of lending that does repay. This can have huge consequences on your expenses. Fortunately, Bank can help you .

Change in financial situation interest-only loan

Perhaps you have already been informed, or you will soon be informed by your lender that your current interest-only loan will be converted into a loan that requires repayment. This means that you no longer only pay interest per month, but also pay part of it. Your monthly payment will increase, even up!

Example increase conversion monthly repayments loan

If you have a repayment-free loan of € 30,000 and your monthly installment is now between € 150 and € 300, you now only pay interest and do not settle anything. After the conversion you will also pay redemption alongside interest. This makes your monthly amount between € 450 and € 600. Your financial situation is therefore changing considerably, so you may get into trouble.

Bank helps you avoid problems with the loan

The lender may implement this change because they have stated this in the conditions. And it is also good to repay your loan, only if this brings you into trouble this is not a pleasant situation. We would like to help you to ensure that your monthly costs do not rise so insanely, so you will not run into problems. This way we can see for you what the best possibility is in your personal situation. Request free advice from our credit specialists here.


Private lease car affects your mortgage loan

You want a new car, so that you can easily get from A to B and go on a car holiday to the Costa del Sol. You are thinking of a private lease car; as that becomes increasingly popular, you have become curious about the possibilities. Private lease has many advantages, but also some hooks and eyes.

Advantage private lease car

The nice thing about private leasing is that you do not have to put a big bag of money on the table in one go, you pay a fixed amount per month for the use of the car, insurance and maintenance. And of course you pay for refueling yourself. Over the past year there has been a doubling of private lease contracts compared to 2015. Many see the positive characteristics of a private lease car.

Sharper rules for private lease cars and mortgages

What is sometimes forgotten is that there are currently sharp rules around a mortgage. Are you planning to buy another house soon? Then it is wise to take this into account. Private leasing is seen as a loan since 1 July and therefore also registered with the BKR as operational lease, code OA.

Of the monthly pay they see 65% as financing and 35% for the insurance and maintenance of the car. The part financing lowers the maximum mortgage that you can get, 2% of the loan sum is noted as an expense.

Example influence private lease car and maximum mortgage

Suppose you can get a maximum of € 180,000 in mortgage, of which the monthly payment is € 850, -. You also have a 3-year private lease contract of € 400 per month. The financing part is then: € 400 x 36 months = € 14,400 x 65% = € 9,360, – Of this amount 2% is used to calculate the burden, that is: € 9,360 x 2% = € 187.20.

Thanks to your private lease contract, your maximum mortgage per month drops from € 850 to € 662.80 (€ 850 – € 187.20). Depending on your other expenses, this amount may be even lower.

So are you planning to buy a new home soon? Then you better consider buying a car yourself, because the costs are not included in a mortgage calculation.

Do you want mortgage advice ? We would like to bring you in contact with an independent mortgage advisor. Pleasantly arranged.


Problems after term mortgage loan

Are you one of the 2 million people with an interest-only mortgage? Then check your long-term income. About ten percent of the 2 million has a major financial problem if the income falls in the future. That says Vereniging Eigen Huis (VEH). These figures come from an analysis of the first outcomes of the recently launched VEH mortgage scan.

The first analysis is based on 56,000 completed mortgage scans. Monthly charges threaten to become unaffordable for many people, for example because they retire. A study by ANBO (advocacy organization for seniors), that the organization started together with EénVandaag, shows that more people are in trouble. This may also be due to higher interest rates being applied or the benefit of mortgage interest relief being canceled. Furthermore, it appears that few people are worried about the future. According to ANBO often unjustified.

Especially the elderly

Recently, on 1 October 2018, VEH launched the mortgage scan. This launch coincided with the campaign ‘Relaying Settlement’, an initiative of Dutch banks. Because only the income counts for a new mortgage – and not the surplus value or the assets of the person concerned – it is negative for many people. Especially for the elderly. ANBO believes that banks should view the entire situation and then assess the risk. Currently, many people are in uncertainty because they have to pay off their mortgage, while there is no possibility for financing.


The ANBO survey, conducted among 4,000 members and non-members, also shows that seniors still have substantial mortgage debts. Problems are expected especially between 2035 and 2038. During that period, the interest-only mortgage for 700,000 households will expire, thus ending the right to interest deduction.


Mortgage loan arrangement 2019 not wise for energy-neutral houses

Association Wide Rapids disagrees with the proposal of the Ministry of Finance for only € 5.000 euro difference in mortgage space between zero-on-the-meter homes (NOM homes) and those with an energy performance coefficient (ECP / EI = 0, measure for energy efficiency) of 0 or lower. According to the association, that is irresponsible. The association Wide Rapids is a coalition of, among others, industry, municipalities and housing corporations.

Energy-efficient homes

The aforementioned houses generate as much (or even more) energy as it needs for the house and the household. This can be achieved through an upgrade of the house with, among other things, facade approach, smart installations and own energy generation. Currently, buyers of this type of house can borrow € 25,000 on top of the usual maximum financing burden. According to the Mortgage Credit Regulations 2019, this will change for the EPC = 0 homes next year: this will be reduced to € 20,000. No energy performance guarantee needs to be provided.

Energy saving measures

Buyers of low-energy houses can borrow up to € 25,000 extra on top of the usual maximum financing burden if they opt for energy-saving measures such as:

  • High efficiency boiler
  • Heat pump
  • Solar water heater and cells
  • Cavity wall roof and floor insulation
  • HR ++ glazing

Difference homes

Both houses are sustainable, yet different. At NOM homes, the building-related and the user-related energy costs do not exceed zero. An EPC house has no building-related, but user-related energy costs. That is the energy consumption for household appliances.


Association Wide Rapids find the scheme not wise. According to the organization, the difference of € 5,000 is too low. She fears that it leads to irresponsible financing situations. To make it clear, the Association calculated the average difference at € 5,000 difference in mortgage space: that equates to € 197 net mortgage debt per year. The energy costs vary from € 616 to € 911 per year. Regarding apartments and detached houses respectively.

Mortgage advisor

The mortgage lender places the extra mortgage amount in a depot and checks whether the entire energy-saving measures are actually spent. For this they will ask to view the purchase notes. An independent mortgage adviser will gladly tell you under what conditions you can take 106% of the value of the home as a mortgage.


Interest-only mortgage interest-free mortgage loan expires

Mortgage rates have been in the news a lot lately because of the historically low position. Mortgage interest rates have never been as low in the last ten years as in the last quarter of 2017. Unfortunately, this only applies to an annuity or linear mortgage. The interest rate for a interest-only mortgage is rising significantly.

What is a interest-only mortgage?

With this form of mortgage you do not have to repay during the term. You only pay interest on the mortgage sum. Because you do not pay off, this interest amount will remain the same if you have secured it over the entire term. You do not accrue capital with this form of mortgage because you do not pay off the mortgage. With the sale of the house or with savings you have to pay off this mortgage. This form of mortgage carries a great risk, especially if you fall into an older age category.

Rising mortgage interest

The interest-only mortgage is still loved by the Dutch despite the high risk. More than 1.1 million Dutch people use this form of mortgage. The new capital requirements for banks have recently become known. It establishes that banks must maintain larger buffers on the balance sheet with the aim of preventing a new financial crisis. The Netherlands is hit hard by these new requirements. The mortgage system has a relatively high mortgage debt compared to the rest of Europe. Because such a large part of the Dutch uses a interest-only mortgage, this will not be easy to catch up.

The new standard will not take effect until 2022, but the banks will already take action for this. Through an extra store for interest-only mortgages, they want to discourage mortgages from closing this form. Redeeming this mortgage due to the rising interest rate differential can become interesting.


Do not penalize shopping for a loan

Credit rating agencies measure the financial health of millions of Dutch people. Their scores determine whether you qualify for a telephone or energy subscription, a loan, credit card or mortgage. As soon as you buy something on payment, it is predicted how great the chance is that you do not pay.
Those scores are opinions; clients can not automatically take over without a person looking at them. In practice this is different: mortgage lenders block customers with negative credit registration, telecom providers often designate an external credit check as a reason for a rejection.

Negative stories
In the outside world, negative stories dominate about rating agencies. Being rejected is annoying. It stresses that agencies collect personal data that is used against you at critical times. If you loose a payment arrears, the ‘negative registration’ haunts you for another five years. Correcting mistakes takes a long time, so people can miss a mortgage or a dream home.

Credit rating agencies are complaining about lack of understanding. They think that they have a social task: prevent people from being too deeply indebted. They also see themselves as an economic lubricant for their clients: credit providers, telecom providers, energy companies, leasing companies and web shops. And complaints? According to the evaluators, it is ‘only’ a few hundred per year, on millions of reviews.

To cut yourself in the fingers
The Credit Registration Agency (BKR) in Tiel legally obliges the data of 10.5 million Dutch people. You will be included in a file there as soon as you take out a personal loan or credit. From 250 euros onwards, credits must be reported; if your telecom provider forwards your new device, for example. The BKR also counts the number of reviews you received in the past year. But the same ‘shopping rule’ also means that consumers who compare personal loans – in search of favorable rates, for example – are punished with a lower BKR score. The credit registration agency therefore wants to adjust its scoring method. When the new weighting comes into force, it is not yet known.

BKR score
The score awarded by the agency, based on various criteria, indicates the probability that someone will be in arrears. In this calculation, it counts how often credit providers test someone in the previous twelve months. The BKR uses two ‘scorecards’ (statistical models). One person predicts the probability that you will have a payment arrears in 18 months, the other the chance that this will happen in the course of 18 months. That way, financial institutions keep an eye on their client portfolio.

Banks use the BKR to gauge the financial health of their customers. Whoever pays out a continuous credit or credit card expenditure without problems, therefore increases his BKR score. The disadvantage is that the maximum amount of loans to be borrowed decreases due to other outstanding credit.


Savings or mortgage loan repayments?

At times when savings rates are low, it is less attractive to put your money in a savings account. There are several alternatives that you can consider, such as paying off your mortgage. But what is the reason for low savings rates and what are the advantages and disadvantages of paying off your mortgage?

Save or redeem?

If you are going to pay off your mortgage, your mortgage debt will be lowered and you will often reduce the monthly costs. As a result, the mortgage lender misses interest income and you will have to pay a fine for this. You can often freely pay a certain amount of fine. This differs per mortgage lender and is in the conditions of your mortgage. Always be informed by an independent mortgage advisor in your area before you make a choice.

Benefits of repaying:

  • When the mortgage interest rate is higher than the savings rate, it is wise to partially repay your mortgage with your savings. Here you will benefit more.
  • The monthly payment decreases when you pay off and you are more owner of your home for a small part. This allows you to build up more capital.
  • The risk of a residual debt with possible sale of your home will be lower.
  • Are you going to retire and will you contribute part of your income? By paying off your monthly fixed costs will be lower and you will not suffer from this during your pension.
  • Is your fixed-rate period declining and interest rising? This will have less impact if you have repaid a part because your debt is lower.

Disadvantages of paying off

  • Less tax benefit
  • Do you deduct more than the maximum fine-free amount? Then you have a chance of a fine from your mortgage lender.
  • Your savings balance will be a lot lower after redemption. If you have to make an unexpected expense, you can not just use this money and you will have to take out a consumer loan with a much higher interest rate than your mortgage.

Let yourself be informed by an independent mortgage advisor

Before you make a choice between (partially) paying off your mortgage or putting your money into a savings account, you are wise to get your first advice. Consumind is happy to put you in touch with an independent mortgage advisor in your area to discuss the various options. Only then do you know for sure whether the choice you make is the right one for your situation.

Causes low savings rates

Low savings rates do not just happen. There are various causes for this, including the influence of the European Central Bank. The ECB can set the so-called ECB interest rate to zero percent in order to give economic growth a boost. This reduces the interest on loans, which stimulates the population to borrow more money and therefore spend more money. Normally, loans are financed with assets held with the banks on savings accounts. Due to the low ECB interest rate, banks can borrow money at a low interest rate. As a result, there is less demand for assets on savings accounts and therefore the savings interest automatically falls.

Another cause is the aging of the population. The group of people approaching their pensionable age is proportionately larger than the rest of the population. That large group of people now save for their pension and gives relatively less than the younger population. So there is a lot of capital available at banks and thus the savings interest decreases.


Starters apply for fewer mortgage loans

The number of starters that took out a mortgage loan for the first time fell by 16% in the last quarter of 2016 compared to the last quarter of 2015. Even though the number of people moving through rose by 26% during the same period, the Hypotheker research shows. The reason? Residential properties are too expensive for starters and the competition from the transfer companies is too high.

101% of housing value financing

Due to the stricter mortgage loan rules, it is increasingly difficult for starters to buy a house. For example, as of this year, only 101% of the market value of the home can be financed with a mortgage loan. Starters must therefore increasingly use savings or financial support from family or friends. In more cities it has become easier for new owners to buy a house because of the sale of their own house with surplus value.

mortgage loan interest deduction only with linear or annuities mortgage loan

Starters who now take out a mortgage loan must, in order to make use of the mortgage loan interest deduction, pay off the mortgage loan in full. This is possible with a linear or annuities mortgage loan . Forwarders, on the other hand, can finance part of the housing value without interest. As a result, they benefit more from low interest rates and mortgage loan interest deductions.

Large cities unaffordable for starter

The problem for starters is the most acute in the big cities. In Amsterdam the number of starters that closed a mortgage loan fell by 33% and in Utrecht by 27%. The number of people moving on with a closed mortgage loan rose by 34% in Amsterdam and Rotterdam by 42%. Housing prices in Amsterdam have risen sharply. For example, for a square meter you will lose almost 90% more than the rest of the Netherlands; 3 years ago that was 50%.

Are you a starter? Do not let yourself be bothered by this message. Because some headwind does not mean that it is impossible. An independent mortgage loan adviser will be pleased to see if your dream home is within your reach.