Dutch Mortgage changes in 2022

The most important Dutch Mortgage Changes in 2022

The mortgage rules change every year in the Netherlands. Read in detail below what the most important changes are as of 1 January 2022.

What has changed in 2022 for your (new) mortgage and your equity?

In 2022 you should take into account the following most important changes, in short:

• NHG cost limit has been raised to € 355,000. In 2021 this was still € 325,000. With energy-saving features 6% higher
• Mortgage interest deduction will be further limited in 2022
• Decrease in the “Eigenwoningforfait” (an extra Dutch tax on home owners)
• Less Mortgage with Private lease
• “Borgtochtprovisie” (a mortgage guarantee fee) goes from 0.7% to 0.6%
• “Overdrachtsbelasting” (Transfer tax) adjustment 2022
• Change in “eigenwoningregeling” home ownership regulation 2022

View all Mortgage changes explained in detail below:

The mortgage rules change every year. Read in detail below what the most important changes are as of 1 January 2022.

Higher NHG (National Mortgage Guarantee) limit

When you buy a house with the Dutch National Mortgage Guarantee (NHG), the NHG limit in 2022 will be € 355,000. In 2020 this was still € 325,000. For a home with energy-saving facilities, the cost limit is even 6% higher, namely € 376,300.

Mortgage interest deduction will be further limited in 2022

The maximum settlement rate at which you can deduct mortgage interest will fall from 43% to 40% in 2022. This is only if your income in box 1 is above € 69,398 and is taxed at the top rate of 49.5%. The maximum settlement rate will be further reduced by 3% points per year, until in 2023 it will be equal to the base rate in box 1 of approximately 37% for all taxpayers.

Decrease in the notional rental value

The notional rental value for homes with a WOZ value (Tax Property valuation value) between € 75,000 and € 1,130,000 will decrease further by 0.05% point. In 2022, the rate will therefore be 0.45%. This compensates homeowners for the accelerated limitation of the mortgage interest deduction. With a WOZ value of more than € 1,130,000, the income addition remains 2.35%.

Less Mortgage with Private lease

Private lease reduces your maximum mortgage loan amount! If you lease a private car, this will have a negative effect on your maximum mortgage amount from 1 April 2022. From then on, your private lease contract will be registered for 100% with the BKR (The Dutch Bureau for Credit Registration). Now it is only 65%. This change can therefore ensure that your maximum loan amount is many euros lower.

Lower mortgage guarantee fee

The mortgage guarantee fee goes down from 0.7% to 0.6%. If you take out a mortgage with NHG, you pay a percentage of mortgage guarantee fee. If you as a home buyer take out a mortgage with NHG in 2021, you pay 0.7% on the mortgage. As of January 1, 2022, this percentage will be reduced and you will pay 0.6%.

Transfer tax adjustment 2022

In 2021, the exemption for paying transfer tax was introduced. This exemption applies to home buyers under the age of 35 who buy a home for a maximum of € 400,000. Is the total home value higher than this limit? Then you just have to pay 2% transfer tax on the whole. In all cases where the house does not become your main residence, a rate of 8% transfer tax will apply from 2022.

Change in “Eigenwoningregeling” home ownership regulation 2022

The house owner regulation has been amended in three parts as of 1 January 2022. This is to make the rules as fair as possible for, among other things, homeowners whose partner has died. If you would like to read more about this in Dutch, please visit Rijksoverheid.nl. (https://www.rijksoverheid.nl/onderwerpen/belastingplan/belastingwijzigingen-wonen/eigenwoningregeling)

Increase of the WOZ value (Tax Property valuation value)

The average WOZ value of homes is expected to increase by 8.5 to 9.5% in 2022.

The municipality uses the WOZ value of your home to determine the amount of municipal taxes, such as sewer charges, water authority tax  and real estate tax (ozb).

Less tax benefit in 2022 for small (or already paid off) mortgage

Anyone who no longer deducts mortgage interest – because the mortgage has been repaid in full – or who deducts less mortgage interest than the addition to the notional rental value, will have a positive balance. Since 2005, the ‘Wet Hillen’ (the Hillen Act) has ensured that this positive balance has been reduced to exactly zero by means of an additional deduction. But as of 2019, the government has started to phase out the Hillen-deduction in 30 annual steps of 3.33% points. In 2022, the Hillen-deduction will only compensate for 86.67% of any positive balance of notional rental value and mortgage interest deduction (still 90% in 2021). As a result, you will still have to pay income tax in box 1 on almost 14% of the positive balance.

Do you want to know exactly which rules apply? Make a free appointment now.

The exact rules and numbers for mortgages in 2022 were presented on Budget Day, the 3rd Tuesday in September. At the end of October 2021, Nibud also presented the latest financing burden tables. Now that all changes are final, we know exactly what we can borrow in 2022 in terms of mortgage. You are most welcome for a free mortgage conversation, see you soon!