The cabinet plans to give the housing market a boost by increasing the national mortgage guarantee scheme (NHG) to €350,000.
At the moment, only loans of up to €265,000 can be covered by the guarantee, which can be applied for by home owners for certain types of houses.
The number of house sales in the Netherlands has fallen 40% since last September, due to the economic crisis.
Ministers will discuss the plan on Friday, the Telegraaf reports.
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