October 31, 2020


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“Mandatory valuation unnecessarily increases homeowners’ costs”

"Mandatory valuation unnecessarily increases homeowners' costs"

Divorce, renovation or interest rate cut on the mortgage: From June 2021, every time the mortgage changes, homeowners must have their home valued by a local appraiser. The new European regulation can cost people hundreds of euros more. writes The Financial Times. Nowadays, an online and cheaper evaluation report, a WOZ declaration from the municipality or no evaluation at all is usually sufficient.

The change is the result of a new directive of the European Banking Authority (EBA), which will come into force next year. The EBA wants to limit the risks for banks. Accepting a mortgage without a rating can result in the mortgage being more than the value of the home. The measure does not apply to other mortgage providers such as insurers.

De Nederlandsche Bank (DNB) can deviate from the European directive, but does not seem to be planning to do so for the time being. The cabinet, banks and homeowners have little support for the directive.

Bad idea

Vereniging Eigen Huis (VEH) calls the assessment obligation a “bad idea” which also “hunts home owners unnecessarily”. “That is disproportionate. Any small change in the mortgage will soon have your home reevaluated by an appraiser. Even if you switch to a lower interest rate, as many people do now,” a spokesman said in the report. kup R.adio 1 Journal.

If there is no assessment in the file from June next year, sanctions can be imposed. The VEH calls this an exaggeration. “In the Netherlands we have the highest mortgages in Europe, but also the lowest mortgage default rate. There are very few people who cannot pay their mortgage. What problem do you solve with that?”

The DNB must inform the European regulatory authority before the end of this week whether it is making an exception. “It would help to apply for an exceptional position, but I don’t think that’s likely,” says policy advisor Robin Beentjes of the Dutch Banking Association (NVB) in the FD. ‘