Whatever the government decide they need to understand the repercussions for existing mortgage holders. With already 700.000 mortgage holders in payment arrears what will happen if the tax break is reduced? Most probably even more people will join these 700.000 . Reducing the break for interest only mortgages will probably hit the lower wage earners more as they are the one's who needed low monthly payments in the first place. Personally I would opt for a maximum level to which you receive tax break and above not.

It is grossly unfair to move the goal posts after the fact. Existing mortgages were determined based on conditions at the time (>5-10 years ago). Extracting oneself from a mortgage incurs fines from the lenders, so the borrower is left with a mortgage he might no longer be able to afford, and unable to afford the refinancing. The borrower's only solution is to sell up, for a drastically reduced price, negative equity and a collapse in the housing market.

The only winners are the banks in this scenario: they get their money back, buy the house for less than it's value and sell it off for an additional profit.

Looks like the same receipe again, still these european governments don't understand they must create new jobs before increasing taxes. Furthemore we all know how high is the credit the Ductch banks have been given for the house market. People who already have lost their jobs will strugle in paying off the mortgage with conseguences for bank and governement which sometime ago had the great idea to put some public money in their volt.

I don't understand exactly how this would help the economy by pushing families with a mortgage even closer to the edge. They should start and apply this to those who can afford it first (banks & co)

With the housing market in the crapper? Absolutely!!! There has to be incentives to buy a house right now and having a tax deduction on your mortgage payment is the BEST one!

Agreed with the comments above- give people incentive to work- create value; for themselves, their family the community- instal a feeling of confidence, in society and the policy frameworks. This is not the way to do it- more specifically, create the buffer that will allow for necessary housing market reforms.
Besides, aren't they now changing what both parties originally had in their manifesto?
I think so..

So , they want to remove the moretgage tax relief from the existing mortages while the income tax remains at the previous rates?

Would it not be better to just raise the income tax to 65% on all? At least house prices would not be affected this way.

I have been hearing about several solutions on this mortgage tax relief! to be honest, the Dutch tax relief on mortgages is not fair and reasonable. It is more advantageous to rich people than helpful to the middle-class. Those being said, I just don't understand why no one talks about just simply putting a limit on the mortgage or on the amount of interest you can deduct each year!? Many countries have a solution like this! for instance, they can say that only up-to 300,000.00 Euros of the house price is deductible. This seems fairer as every one benefits equally and people who are richer are responsible for the additional value of their property!

Already well into trouble and the banks wont listen or help. Trying to get help as a non-dutch speaker is impossible.
They sooner see people on the street than actually help !

That must really be an hoax!

This will definitely cause even more issues. The tax break on interest-only morgages will eventually be ruled out the must give the lender the possibility to refinance (change mortgage type for instance) WITHOUT ANY fine or extra costs. When you engage your liability in such an investment, none of the involved parties (lender, bank, insurance, tax office) should change the rules once you've already signed

Unfortunately we are at the point of no return.
It is the war among the poors.
Privileges for the Lobby taken from the pocket of the citizen.
Too much money wasted in social benefit given to people which does not do anything to find a job. I think the system should be fair in this matter.
You are tax debtor or creditor based on your contribution history an not forever. This is valid for childcare, social benefit, mortgage, health insurance, social house, etc...

This is an area where not only were we sold out by Rutte and his banker friends, but clearly the PvDA also sold out too. The whole economic mess was created by the banks.. who then stuffed their pockets with our money.. and now want to rip us all off again. Oh, wait? I get it.. isn't Wouter Bos (of the Great ABN-AMRO Swindle) their Formateur? We got fooled again.

What would make sense is to stop the mortgage break for high income earners and/or for homes, for instance, over 500,000 euros. That would save the most money without affecting those who really need it to keep their homes.

@H, you are so right. The problem is that those with interest only mortgages, are most likely the ones that have negative equity on their homes, plus had to pay full transfer tax on purchase. When they bought there was no talk about change in mortgage deductability rules. Recent buyers buy homes on low transfer tax, plus heavily discounted purchase price, and are aware the rules on mortgage deductability will change. To treat both groups the same is unfair. In about 10 years the first group will no longer exist as all their mortgages expire anyway.

Don't forget for every mortgage holder in negative equity there is someone on the otherside of the trade. It hurts me to still see so much faith in a corrupt system.

They should focus on getting the economy on track such as tax cuts rather on such things that will only hurt the people and make banks rich.

@ufo: How does no longer having this tax deduction on interest-only mortgages make the banks rich? By taking away some of their business??
About a retroactive change - I doubt it that it's likely. Still, should that happen - which I certainly hope it won't - that won't make the banks rich either. They'd loose yet more business for a while and end up with houses they definitely don't want nor they have the means to take care of.