Netherlands to offer higher mortgages for energy efficient homes from 2024

From 2024, Netherlands residents may be able to get a higher mortgage for an energy-efficient home than for a home with a lower energy label. According to Minister Hugo de Jonge for Housing, people who pay less for energy because their homes are well insulated, for example, can responsibly afford a higher mortgage.

The Cabinet plans to take this measure based on advice from the budgeting institute Nibud. The Ministries of Home Affairs and Kingdom Relations and Finance will work on making this happen.

The government is also changing how student debts weigh against a mortgage. Currently, mortgage lenders look at the total student debt and associated monthly repayments when determining how high a mortgage can be. But if former students made extra repayments to their student loans, their actual monthly repayments are lower. From 2024, mortgage lenders will take that into account.

According to De Jonge, most households will be able to borrow slightly more to purchase a home in 2023, thanks to the expected wage increases and purchasing power measures taken by the government. Without these, the maximum mortgage would decrease for everyone due to the higher mortgage interest rates.

Dual earners will be able to borrow even more next year because both incomes will count 100 percent. Currently, the second earner’s income only counts for 90 percent under the mortgage standards.

“It is important that people can buy a house that matches their wishes and personal situation as much as possible. At the same time, households must have enough money left over for other essential expenses like groceries and energy,” De Jonge said. “The annual update of the lending standards is a good system to prevent home buyers from borrowing more than they can afford.”