Monday 05 December 2022

Banks come up with their own mortgage tax relief plan

The Netherlands’ two biggest mortgage providers have come up with their own plans to phase out mortgage tax relief, the Financieele Dagblad reports on Tuesday, quoting banking sources.

The paper says both ING and Rabobank have drawn up their own plans to gradually cut back on the tax break and handed them over to the banking association NVB.
NVB chairman Boele Staal said on Monday the organisation wants to talk about ‘necessary reforms’ to the housing market without ‘taboos and blockades’. He was speaking at a New Year drinks party for the sector.
The banks say uncertainty about the tax break on mortgage interest payments is one of the main reasons why houses are not selling at the moment.
Earlier this month central bank president Klaas Knot said home owners should be able to borrow no more than 90% of the value of their house. At the moment people can borrow 106% of the value of their homes but a gradual reduction to 90% would ‘bring stability’ to the housing market, Knot said.
In November, the central bank called on the government to limit the tax breaks for mortgage holders, saying 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 – and the current government has pledged to leave it untouched.
The Rabobank plan envisages tax relief being restricted to mortgages which involve paying off the loan, while ING proposes stopping the tax break overnight – in 30 years time.
Staal said he did not have a preference for either option. ‘No-one believes mortgage tax relief will be left alone by the next government,’ he said.
The current cabinet has committed itself to making no changes, and Geert Wilders, whose anti-Islam party props up the government, says he will go for an election if ministers change their mind.

Thank you for donating to

The team would like to thank all the generous readers who have made a donation in recent weeks. Your financial support has helped us to expand our coverage of the coronavirus crisis into the evenings and weekends and make sure you are kept up to date with the latest developments. has been free for 14 years, but without the financial backing of our readers, we would not be able to provide you with fair and accurate news and features about all things Dutch. Your contributions make this possible.

If you have not yet made a donation, but would like to, you can do so via Ideal, credit card or Paypal.