The maximum amount of money home owners in the Netherlands can borrow must be reduced from the current 106% of the value of the property, according to central bank chief Klaas Knot.

In an interview with news magazine Vrij Nederland, Knot criticises the amount home owners can borrow. The maximum was already reduced this year.
‘Being able to borrow more than the price of the house is a typically Dutch phenomenon,’ the magazine, published on Thursday, quotes Knot as saying. ‘So I do think the ratio should be reduced further… abroad percentages of above 80% are very unusual.’
Last month, Knot said the Netherlands should also work to reform the current generous system of mortgage tax relief.
‘The large mortgage debt in the Netherlands (128% of GDP) reflects the current fiscal regime, which encourages households to take out maximum loans and make minimum repayments,’ the central bank said last month.