October 20, 2020

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Student debt could be less mortgage applications in 2021

Student debt could be less mortgage applications in 2021

From next year, students’ debts may be less high when determining the amount of a mortgage. As a result, people could borrow more. Finance Minister Hoekstra has proposed a change in the law that would for Internet consulting Is. The Financial Daily writes about it today.

At the moment, the student debt is included in the amount that determines how much you can borrow for a house. This is done according to a fixed calculation, a “weight ingestion factor”. On the advice of nibud, Minister Hoekstra is now proposing to make this weighting factor flexible and to link it to interest rates. It’s been around zero in recent years.

Under the new proposal, a student debt of 10,000 euros and a mortgage interest of 1 to 2% can be worth around 3,000 euros. With a student debt of 25,000 euros, it saves between 7,000 and 8,000 euros, which can still be borrowed. Interior Minister Ollongren presented a report on the subject earlier this month. Letter of the room.

Two-earners borrow more

The bill also states that two-earners could be able to get a higher mortgage from next year. Currently, the lowest income of two-earners is 80 percent included in the sum, which determines how much a couple can borrow. Minister Hoekstra wants to increase this to 90 percent.

Until 2012, the second revenue was not taken into account at all, and since then the rate has been increased to 80 percent in 2020. This is also done on the advice of the Nibud. The Budget Information Authority says the disposable income of two-earners is growing because it has been made more fiscally attractive for work in recent years. This is partly due to the reduction in the payment of the general tax credit to the lowest-earning partner. According to nibud, this should be taken into account when considering how much two-earners can borrow.

The Nibud is still working on calculations of how much this increase to 90 percent could be for different income groups. nibud expects to complete it by October. In the FD, Rene Wickerhoff of mortgage consultant Van Bruggen Advisory Group estimates that a mortgage of three tonnes can be around 10,000 to 12,000 euros.

Whether the change in the law comes into force in January remains to be seen later this year.