Law changes for 2018 so far: Housing

With the new year starting, the Dutch government is implementing a number of new laws and changing some existing ones. Below is an explanation of changes to the law applying to housing and living environment. 

In 2018 prospective homeowners can take out a mortgage up to 100 percent of the value of their home. Home buyers can no longer borrow more than the house is worth. Other costs like advice, notary or valuation costs can no longer be co-financed from the mortgage. In 2017, home owners could loan up to 101 percent of their home's value.

The maximum mortgage amount for two-income households increases next year. From January 1st, the second income will count for 70 percent, compared to 60 percent in 2017.

The maximum mortgage interest deduction in the highest tax bracket is reducing by 0.5 percent. From January 1st, the maximum tax rate at which mortgage interest can be deducted is 49.5 percent.

From next years home owners associations are obliged to reserve money for major maintenance. This reserve fund must be separate from the associations' savings or debit account. Major maintenance includes maintenance to the facade or roof, as well as sustainability measures like floor- or roof insulation. The amount to be reserved can be determined through a multi-year maintenance plan, or the association must save 0.5 percent of the building's reconstruction value. More information can be found here.

Energy tax is increasing next year. The rates can be found here. 

The cost limit for a mortgage with National Mortgage Guarantee is increasing next year. This limit is linked to the average house prices. As of January 1st, the cost limit will rise to 265 thousand euros. For houses in which investments are made in energy saving facilities, the limit increases to a maximum of €280,900. 

As of July 1st, the maximum allowable rent increase for social housing is 3.9 percent for income up to and including 41,056 euros, and 5.4 percent for higher incomes. For housing associations, in 2018 the total rent increases may not exceed 2.4 percent.