Major Changes in Mortgage Rules Coming in 2024

-translated article from Leven Wonen-

Planning to buy a house or already have a mortgage? Be prepared for significant changes in mortgage rules set to take effect in 2024. Here’s a breakdown of the key amendments:

1. Boost for Energy-Efficient Homes

Starting 2024, the maximum mortgage you can secure will be influenced by the energy label of the property. The better the label, the more you can borrow without additional conditions. Expect an additional €5,000 for homes with energy labels C and D, and a substantial €10,000 for those with energy labels A and B. If you opt for an exceptionally sustainable home with an A++++ label and a guaranteed energy performance of at least ten years, you could access an extra loan amount of up to €50,000.

2. Increased Mortgage Options for Homes with Lower Energy Ratings

Even homes with ‘poorer’ energy labels will open up possibilities for additional borrowing in 2024. The catch? The extra amount must be invested in making the home more eco-friendly. The additional loan varies based on the current energy label, ranging from €10,000 for labels A and B to €15,000 for labels C or D, and up to €20,000 for labels E, F, and G. For homes without an energy label, a maximum of €10,000 extra can be borrowed for sustainability.

3. Solo Buyers Get More Leeway

Singles with an annual income of at least €28,000 can look forward to borrowing an extra €16,000 in the coming year, providing them with increased financial flexibility when entering the housing market.

4. NHG Changes

In 2024, those opting for a mortgage with National Mortgage Guarantee (NHG) can borrow a maximum of €435,000, up from €405,000 in 2023. For those planning to make their homes more sustainable, the limit increases to €461,100 in the upcoming year.

5. Navigating Mortgages with Student Loans

The impact of student loans on mortgage borrowing is set to change. From 2024, banks will consider the actual monthly payment rather than a percentage of the total debt amount, affecting the borrowing capacity for individuals with student loans.

6. Property Transfer Tax Update

Buyers under 35 years of age, moving into their newly purchased homes, continue to enjoy property transfer tax exemptions in 2024. The revised cap is set at €510,000, up significantly from €440,000 in 2023. However, those above 35 or with previous exemptions will face a 2% property transfer tax on the purchase price. For non-owner occupants, such as those purchasing for rental purposes, the tax rate stands at 10.4%.

7. Steady Changes in Mortgage Interest Deduction

The maximum mortgage interest deduction undergoes a marginal increase in 2024, from 36.93% to 36.97%. The eligibility criteria remain tied to the type of mortgage, with continued deductions available for certain mortgage forms under transitional rules.

Certified Mortgage Advisors

If you’re eyeing a home purchase in 2024 or have questions about your current or potential mortgage, consult with our Certified Financial Advisors, also known as a Certified Mortgage Advisor. Expert guidance is available to help you navigate these upcoming changes and explore the best options for your financial journey.

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