MPs want to make it easier for some tenants to get mortgages

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A parliamentary majority wants to make it easier for tenants who earn too much for social housing, but too little for a mortgage to be able to buy a home. The CDA submitted a proposal for these tenants' spotless rent records to be taken into account when they apply for a mortgage - let their history of faithfully paying rent show that they can bear the monthly costs of a mortgage, is the idea, RTL Nieuws reports.

These tenants often pay large amounts in rent, sometimes over a thousand euros. If they can manage that, they can likely also manage paying a mortgage, CDA parliamentarian Julius Terpstra believes. He wants banks to take a so-called rental statement into consideration as part of the mortgage advice. "Because then young people between 20 and 30 years who have been renting for years can more easily get a higher mortgage, even if they have a flexible contract," he said, according to the broadcaster.

In principle, this is already allowed in the Netherlands, but rarely happens. BLG Wonen, part of the Volkskbank, launched an experiment with rental statements last year. Hundreds of people applied, but so far BLG Wonen only issued six mortgages based on rental statements. According to the company, several dozen customers are still looking for a home. And a large group could qualify for a regular mortgage on closer inspection.

Homeowners association Eigen Wonen told RTL that the rental statement is a good initiative to help people starting on the housing market, but added that it does have limitations. Even if you do qualify for a mortgage with a rental statement, it does not mean you'll be able to find a house in the current tight housing market, spokesperson Hans Andre de la Porte said to the broadcaster. And the pressure on the housing market will increase further if more people can borrow money to buy a house. This could push housing prices even higher, he warned. 

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