News that the outgoing government plans to get tougher than expected on tax breaks on mortgage interest payments has angered VVD parliamentarians, news agency ANP reports on Wednesday.

Earlier, the Volkskrant revealed first-time buyers and people taking out a new mortgage will only be able to deduct the interest from tax if they are also actually paying off their debt, if new rules drawn up by the caretaker government win parliamentary approval.
The measure is to be included in the September 18 budget plans which will be presented by the caretaker government one week after the general election.
Austerity package
Although restrictions were agreed between the five parties who drew up a package of emergency austerity measures in April, in order to meet eurozone deadlines, the VVD’s junior finance minister Frans Weekers has opted for a stricter interpretation, the Volkskrant says.
‘This is extremely unfortunate. We want more room to allow de-facto repayments,’ VVD parliamentarian Helma Neppérus is quoted as saying.
For example, the VVD thinks mortgages which give first-time buyers a year’s grace before repayments start should also be eligible for the tax break. Other ways of spreading repayments in different ways or lump-sum systems would also be hit if the new rules come into effect.
New government
However, there is no certainty this, or any measure contained in the September 18 budget, will come into force. Not only will it be up to the new intake of MPs to vote on them, but the new cabinet can also make changes.
The Volkskrant says banks are opposed to the new mortgage measures because most of their profitable mortgage policies will not qualify for the tax break.
Estate agents and home owners’ lobby group VEB are also against the changes which they say will further hit the housing market and saddle first-time buyers with massive repayments.
At the moment, home owners can deduct all the interest paid on their mortgage from tax for a 30-year period.