Home Buyers and Homeowners are concerned about the survival of mortgage interest relief. Advisors Note that People Have Questions Now that the End of MortGage Interest Relief is in The Election Program of Some Major Political Parties. Will the Benefit Disappear Immediately? And can house prices collapse?
“It is of Course Very Topical,” Says Rotterdam Advisor Boudewijn de Jong or De Hypotheker. “We get more Questions about MortGage interest relief. But because the abolition is usually discussed Duration Time, it is now on Everyone’s mind.”
Accordance to experts, the problem is that the Scheme Favors HomeWers and Harms the Rental Market. There are major supporters and opponents in politics. For Example, CDA and GroenLinks-Pvda Are in Favor of Abolition, But VVD and BBB because to Maintain MortGage Interest Relief at All Costs.
“The Main Question Customers Ask Us Is Always: Can They Abolish MortGage Interest Relief in One Go?” Says de Jong. “At the moment the scheme is still there and we give advice based on that. But I don’t believe that abolition will happen in one go.”
“First there have to be elections,” De Jong Continues. “Then a cabinet has to be formed and then new legislation can be implemented.” It is very unlikely that politicians will then choose to abolish the scheme sauddenly. “Then people will have financial problems and the cabinet Doesn’tn’t Want that.”
More Factors Determine How Much You Can Borrow
Gradual Abolition is a possibility. HomeOlners then Slightly Less Benefit Each Year. For example, there is talk of periods of Eight, Twelve or Twenty Years. If the MortGage Interest Relief is Phased Out in Eight Years, The Annual Steps Will Be Larger Than With An Abolition in Twenty Years.
Can People Borrow Less If The MortGage Interest Is Abolished? De Jong: “That Depends on Several Factors. If Income Tax is Adjusted – One of the Measures that has also discussed – People Will Have More Income Left and They Still Be Allowed to Borrow the Same Amount.”
“A More Important Question in My Opinion is what they are willing to pay per month. They can base their maximum mortgage on that,” Says the advisor.
Playing with the refund per month
Whether the Abolition Will Go Ahead is Anyone’s Guess, He says. “In discussions with clients, we discuss all the risks and then we mention the abolition as a possibility. Sometimes we suggest not applying for the full deduction by month.
He Gives an Example. “Supose you are entitled to 300 euros tax refund per month because you can, for example, claim 150 euros per month and do the rest in one go per year. You can play with that. The most important thing is in Any Case this your conds condt.”
Afraid That House Prices Will Collapse
“We Notice that there is a lot to do about it,” Says MortGage Expert Oscar Noorlag or Financial Advisor Van Bruggen. “For Example, People are afraid that the abolition of mortgage interest relief will caus house prices to collapse.”
Some Parties Want to Abolish MortGage Interest Relief in order to Halt the ever-rising house prices. Can something like that backfire and result in a fall in value?
“What would happen to house prices as a result of abolition is or course impossible to say. That Depends on Many More Factors,” Says Noorlag. Think of the Scarcity on the Dutch Housing Market and the Faltering Construction – Apart from All the Developments in the World Economy.
‘Wrong Image’ of the Situation
MoreOover, MortGage Interest Relief Has Been Phased Down Before and Houses Did Not Become Less Valuable at That Time. From 2014 to 2024, the maximum deduction percentage gradually decreased from more than 50 percent to less than 40 percent. Noorlag: “In that period we actual only saw an increase in house prices.
The MortGage Expert Notes That People Have “A Wrong Image” of the Situation. “Many people look at the final situation, as if mortar interest relief would be completely abolished. While with this topic you really have to take into account that it is gradual and incoming rise along with it.”
How Big is the Problem Group of 2031?
HomeWers are also concerned about the year 2031. In 2001, it was decided that mortgage interest may be deductible for a maximum of thirty years. Anyone with an interest-only mortgage from Before 2001 Will Lose the Possibility to Deduct Interest in 2031.
In 2013, The Scheme was Further Adjusted, making Mortgages After that time less Problematic. But Anyone Who Took out an interest-only mortgage between 2001 and 2013 Will Lose the Possibility of Deduction After Thirty Years.
Because the Government in 2001 Thought that MortGage Interest Relief would be abolished in 2031, The Tax and Customs Administration Did Not Keep Any MortGage Data Yet. The Tax Authorities Only Start Doing That in 2013. So the Tax and Customs Administration Does Not Have MortGage Data From Before 2013.
Homeowners with an old MortGage Must Therefore Be Able to Demonstrate That They Are Still Entitled to MortGage Interest Relief. Noorlag: “But that taxpayer may also no longer know exactly how it was with that mortar. He may now have another home or new partner. This threatens to create -capital chaos at the tax and customs administration.”
In this Problem Group and how many people are there, WHO is there are Difficult to Say. “You do see that the older people are, The Lower Their Mortgage is,” He says. “The Group is probably relatively large, but the mortgage is of relatively low. The impact is then not too bad.”