Are you planning on buying a house in the Netherlands? For a while now house buyers can benefit from very low interest rates.
The reason is the rate at the capital markets have been at a historic low. Before the summer it seemed that the bottom had been reached. All major banks increased their rates slightly, after the rates at the capital market showed increase.
However, the last couple of weeks the mortgage rates have clearly gone down again. According to some experts this is caused by increased competition on the mortgage market. New parties have gained a 10 percent market share in a short period.
How can you benefit from this historic low? For some valuable background info on the subject, you can also visit the article published on the ExpatsHaarlem website in June: What do historically low interest rates mean for you and how can you take advantage?
The Dutch government has encouraged home ownership for many years by offering tax benefits for home owners. However, after the financial crisis in 2008, the government felt they needed to safeguard homebuyers against running into excessive debt. This led to tighter regulations, making it harder for some parties to get a mortgage. Expats are usually not affected as they typically earn above average salaries, however the self-employed may now find it harder to get a good deal.
Let’s assume you were already planning on buying a house. These low interest rates will make more expensive houses affordable. You have probably heard about the tax benefits you receive in the Netherlands as a house owner. The biggest benefit for most of us is usually the mortgage tax relief. There have been some changes however in the last couple of years.
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