A Dutch Mortgage in 2025: What’s Changing for Home Buyers This Year?

Each January brings new regulations that can affect prospective homebuyers, and 2025 is no exception. While the updates this year aren’t as extensive as last year’s, they still hold significant implications for buyers navigating the Dutch housing market. Here’s a closer look at the key changes shaping the mortgage landscape in 2025.

1. How Much Can You Afford in Monthly Mortgage Payments?

 

Your borrowing capacity largely depends on your income and the property’s value. In 2025, changes to affordability calculations reflect rising costs for essentials like heating and electricity. This means a smaller portion of your income will be allocated toward your mortgage.

 

For most buyers, this adjustment will reduce borrowing capacity by 1% to 5%. However, if you’ve received a salary increase of several percentage points, this could offset the reduced capacity, helping to balance the impact.

 

2. NHG Limit Raised to €450,000 and Fee Reduced

 

The National Mortgage Guarantee (NHG) scheme provides financial security for both lenders and borrowers. In 2025, the NHG limit will rise from € 435,000 to € 450,000, making it more accessible to buyers purchasing or refinancing homes under this new threshold.

 

Additionally, the NHG fee, which borrowers pay to secure the guarantee, will decrease from 0.6% to 0.4% of the mortgage amount, saving buyers potentially hundreds of euros. This fee reduction, combined with the higher limit, makes NHG mortgages an even more attractive option.

 

3. Higher Transfer Tax Exemption for Buyers Under 35

 

The transfer tax exemption for first-time buyers under 35 will see its property value cap increase from € 510,000 to € 525,000. This adjustment aims to support young buyers in overcoming financial barriers to homeownership.

 

Some buyers are already delaying property transactions to January 2025 to benefit from this expanded exemption.

 

4. Increased Borrowing Capacity for Single Buyers

 

Single applicants will see a slight boost in their borrowing capacity in 2025. The additional allowance for singles increases from € 16,000 to € 17,000, recognizing the financial challenges this group faces.

 

Still, a single buyer with an income of € 40,000 will qualify for a maximum mortgage of around € 185,000—an amount that remains limiting in many Dutch cities.

 

5. Changes to the Impact of Student Loans

 

Buyers with outstanding student loans will experience a slight decrease in their borrowing capacity. For instance, a dual-earner couple with € 20,000 in student debt each and a combined annual income of € 80,000 will see their maximum mortgage reduced by roughly € 1,900 compared to 2024.

 

While the change is minimal for many, it’s important to consider how even small adjustments can affect affordability.

 

6. Updates to the 30% Ruling for Skilled Migrants

 

The 30% ruling, which offers tax advantages to skilled migrants, will remain in place through 2025, with some notable updates:

 

• Transition to a 27% Ruling: Starting in 2027, the tax-free portion of income will reduce to 27%. However, current beneficiaries will retain the 30% rate for five years if they were already approved by January 1, 2024.
• Partial Non-Resident Taxation Changes: From 2025, the partial non-resident taxation scheme will no longer apply to new 30% ruling recipients. Skilled migrants will be treated as residents for all income categories (Box 1, 2, and 3). A transition period will allow current users to retain non-resident tax benefits through 2026.

 

These changes reflect efforts to balance fiscal policy while addressing feedback from major Dutch employers.

 

Conclusion

 

The 2025 updates to the Dutch mortgage process reflect a concerted effort to adapt to the changing housing market and economic conditions. From increased NHG limits and transfer tax exemptions to tailored considerations for single buyers and skilled migrants, these changes aim to enhance flexibility and accessibility.

 

As always, staying informed is key. For personalized guidance, reach out to us—our team is here to help you navigate these updates and secure the best mortgage solution for your needs.

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