More mortgage space for sustainability, singles and students
From 1 January 2024, a number of changes will be made to mortgage lending standards. Households will get more borrowing space for buying an energy-efficient home as well as for making their own home more sustainable. In addition, the impact of a student loan on the maximum borrowing limit for former students will be determined from 2024 on the basis of the current burden of their student loan and single people will get more borrowing limit.
This stands in the letter with which Minister Hugo de Jonge, also on behalf of the Minister of Finance and the Minister of Education, Culture and Science, informed the House of Representatives today about the lending standards for mortgage credit from 2024.
Balancing housing needs and financial risks
The government considers it important that people can finance a home that suits their needs and personal situation as much as possible. At the same time, buying a home with a mortgage should not lead to unjustified financial risks for households. That is why there are lending standards for mortgages on which Nibud advises the government every year. As the Netherlands Bureau for Economic Policy Analysis (CPB) expects wages to rise by 5.2% in 2024, the maximum borrowing limit for almost all households will be higher next year.
Loan space linked to energy label
From 1 January 2024, the maximum allowable mortgage for households will depend in part on the energy label of the property. More can be borrowed to buy a home with a better label than one with a poor energy label. Indeed, householders with a better energy label save on their energy bills. With this, the mortgage better matches homeowners' monthly budget for their mortgage payments.
Extra borrowing scope for energy-saving measures
From next year, it will be allowed to borrow more to make homes with poor labels more sustainable. For these homes, more borrowing can be justified because savings can be made on energy bills after preservation. The extra borrowing is available for homeowners who want to make their purchased home more sustainable as well as for homeowners who want to make their current home more sustainable. In this way, the minister wants to facilitate making owner-occupied houses more sustainable in a financially responsible way. The additional borrowing is not dependent on the level of income and replaces the current fixed additional borrowing amount of EUR 9,000.
Besides the mortgage, subsidies and the National Heat Fund remain available for sustainability with additional opportunities for low-income homeowners. In addition, some municipalities offer attractive financing through the Stimuleringsfonds Volkshuisvesting Nederlandse gemeenten.
Adjustment of borrowing space for former students
From 1 January 2024, the impact of a student loan on the maximum borrowing limit for former students will be determined based on the current burden of their student loans. This means that -in contrast to now- the original size of the student loan will therefore no longer be considered. It was announced last year that this methodology will be switched to 2024. Additional repayments on student loans are thus better taken into account when determining the maximum mortgage. This will give an accurate picture of the monthly charges associated with a study debt on which extra repayments have been made and offer those former students more room to borrow for a home.
In addition, the borrowing space for students borrowing from DUO under the new conditions (with a 35-year repayment period for study debt) increases slightly on average. This adjustment responsibly minimises the impact of student loans on the borrowing space for former students.
Extra borrowing space for singles
Single people with an income of at least 28,000 euros will have the option to borrow an additional 16,000 euros from next year. This additional amount will give this group a little more financial leeway when buying a home.
Extra loan amounts for home purchase and energy-saving measures per energy label
The table below shows the additional loan amounts for home purchase and energy-saving measures for each energy label.
| Energy label home | Extra amount that can be borrowed for purchase compared to a house labelled E, F or G | Additional amount that can be borrowed for energy-saving measures |
|---|---|---|
| E, F, G | € 0 | € 20.000 |
| C, D | € 5.000 | € 15.000 |
| A, B | € 10.000 | € 10.000 |
| A+, A++ | € 20.000 | € 10.000 |
| A+++ | € 30.000 | € 10.000 |
| A++++ | € 40.000 | € 0 |
| A++++ with an energy performance guarantee issued for a period of at least 10 years | € 50.000 | € 0 |