The director of the Christian Democratic party’s academic think-tank has called on members to consider the effect the tax break on mortgages is having on people borrowing too much money.

Speaking on television current affairs show Nieuwsuur, Raymond Gradus said the current economic situation ‘shows there is vulnerability in having too many debts’.
Cutting income tax would largely offset the effect of a reduction in mortgage tax relief, so home owners were not worse off, Gradus told the programme. Reducing the tax break would also stop stimulating people to borrow as much as possible, he said.
The current CDA VVD cabinet is committed to leaving the generous Dutch system intact.
However, earlier this month, the central bank said the current system is damaging the country’s financial stability.
The Dutch system is one of the most generous in Europe – home owners can fully deduct all the interest from tax for 30 years.
Earlier stories
Central bank launches onslaught on mortgage tax relief
Mortgage tax relief is distorting the housing market