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Hopeful home buyers rush to beat mortgage change deadline

Friday 30 November 2012

Home buyers are rushing to beat the January 1 deadline which will end tax relief on all but repayment mortgages, the Financieele Dagblad reports.

‘There is a run on property,’ Pieter van Santvoort, owner of one of the country’s biggest estate agent groups Van Santvoort Makelaars, told the paper. ‘We are dealing with double the number of transactions as a year ago.’

The country’s leading mortgage agent De Hypotheker also reports the number of mortgage requests has doubled.

Aegon, one of the country’s biggest mortgage providers, is processing 40% more requests and banks have put on extra staff to cope with the demand, the paper says.

Tax deduction

From January 1, 2013 tax relief will be limited to repayment mortgages only. This means popular mortgage forms such as a savings-based mortgage (spaarhypotheek) or interest-only mortgage (aflossingsvrij hypotheek) will no longer qualify for tax relief.

Existing mortgages are not affected.

Rabobank, the country’s biggest mortgage provider with some 40% of the market, expects house prices to fall a further 7% in 2013. Compared with the market peak of 2008, house prices are down by over 15%.

Almost 50% of the 228,000 homes currently on the market have been for sale for more than one year.

Are you trying to beat the deadline? Share your experiences using the comment form below.

© DutchNews.nl

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Readers' comments (11)

‘There is a run on property,’...

Almost 50% of the 228,000 homes currently on the market have been for sale for more than one year.

Mortgage application rush perhaps, sales boom - hardly.

Pure sales hype. Utter Fallacy.

By Artemis | November 30, 2012 9:34 AM

no i am not. i have to fisrt find a house i like. one without cheap walls or too much glass, detached, without space-capsule/submarine like stairways up to 2nd floor, nice rectange (not strip like) land, facing south, big kitchen, etc.

By dork | November 30, 2012 9:46 AM

Nice, at least I know when to expect prices to start dropping again, and that is quite soon: Next year!

By rapid | November 30, 2012 1:05 PM

Good Luck, dork :)ROFL

By jaycee | November 30, 2012 3:58 PM

Yup, nice guv controlled media trickery again, good luck with your millstones!

By The visitor | November 30, 2012 5:36 PM

Why would I rush now? That makes no sense at all! In 2013 the housing prices will have to fall, 'cause annuity mortgages will pretty much be our only choice and as a result people will be able to borrow less. Well, you can probably borrow the same, but your monthly mortgage payment will be significantly higher than with the 'creative' loan system that is currently being used. This means that people will borrow less in order to be able to make their payments. When this occurs en masse it will have a huge impact on the housing prices. So no need to rush now. Prices will drop and I'll buy cheaper!

By Jo29 | November 30, 2012 6:03 PM

@jaycee: we don't really have to buy a house here. NL is not my country. if something amazing comes by, I may consider buying it. Otherwise, I can always invest in real estate in my homeland.

By dork | December 1, 2012 10:28 AM

Jo29 - great comment, I agree completely.

By B | December 1, 2012 1:51 PM

You could not make it up, one would need to be 'dolly dimple' to invest in a slow car crash. Good luck, suckers!

By Highlander | December 1, 2012 4:25 PM

I am with Jo29 on this one! People rushing to buy based on increased ability to pay through tax subsidies that will soon run out = spike in demand = bad time to buy. The relative power of sellers is increased for a short time. After that, the power of sellers will fall as demand falls. Then prices fall. Then I pounce.

By Rob | December 2, 2012 12:30 PM

Great comments people..let the sheeple buy a houseboat with a slow leak & no repair-kit ;)

By The visitor | December 3, 2012 12:56 PM

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