The interest rate for a ten-year mortgage with national mortgage guarantee NHG has fallen below 1 percent for the first time. Investment bank NIBC now offers such a mortgage, called Lot Hypotheken, with an interest rate of 0.99 percent. Until now, the lowest interest rate for a 10-year mortgage with guarantee was 1.04 percent, AD reports.
The falling mortgage rate broke a new record on Monday. For the first time in Netherlands history, the interest for the longest fixed-interest mortgage period of 30 years dropped to 2 percent, AD reports based on figures from Actuelerentestanden.nl.
The mortgage provider that broke this record first was Reaal with its annuity mortgage called Lekker Wonen. The interest rate only applies to homes that are eligible for a National Mortgage Guarantee - homes with a value up to 290 thousand euros.
The International Monetary Fund believes that the Dutch tax system encourages the accumulation of debt and has advised the Dutch authorities to address the situation. According to the IMF, both Dutch businesses and individual consumers are guilty of borrowing too much.