The mortgage standards for 2020 are known. View all changes for the maximum mortgage and calculate how much you can borrow for purchase or transfer.
Mortgage standards for 2020 announced
The mortgage standards for 2020 have been announced by Nibud. According to the accompanying press release, the expected wage increase next year will result in a higher mortgage. We take the test and calculate the maximum mortgage for 2020 in various situations.
Wondering if you can borrow more or less next year? Calculate your maximum mortgage here.
Less mortgage with constant income
The National Institute for Budget Information (Nibud) determines annually what part of your income you can use for the mortgage. By applying these so-called financing burden standards, sufficient money remains on other expenses.
Maximum mortgage with and without wage increase
In 2020, Nibud will take into account rising house prices and the accelerated reduction in mortgage interest relief. It has therefore been decided that households with an income of around $ 42,000 can get a little less mortgage next year.
On the other hand, incomes are expected to rise. Nibud expects an average wage increase of 2.5% in 2020. This means that most households can borrow more next year.
This difference for the maximum mortgage (with and without wage increase) is clearly shown in the graph below.
Maximum mortgage for two-income households and single people
Next year the difference with the maximum mortgage between two-income households and single people will become slightly larger. The second income in 2020 can count for 80% for the mortgage. This year that is 70%.
Below some calculation examples for the maximum mortgage for single people and two-income households with different incomes.
Maximum mortgage for those entitled to AOW
For those entitled to AOW, the maximum mortgage in 2020 remains approximately the same. This is because Nibud expects that pensions will not or hardly be indexed next year. In our maximum mortgage calculation you can indicate that you are entitled to AOW. You will then receive a customized calculation.
Do not borrow more than the home value, except in the case of sustainability
Nowadays you cannot borrow more than the house value. The Rutte 3 Cabinet has agreed to keep the so-called Loan to Value (LTV) at 100% during the term of office.
With energy-saving measures, an exception is made to this rule. The mortgage is extended to a maximum of 106% of the home value.
In addition, in 2020 an amount can be disregarded in the case of sustainability. Depending on the energy label, this is $ 9,000 to $ 25,000, which does not count for the maximum mortgage when purchasing or when renewing.
Maximum borrowing with the optimal mortgage
Those who really want to borrow as much as possible must make smart choices. For example, the maximum mortgage is higher if you fix the mortgage interest for 10 years or more. You can then calculate with the actual interest rate instead of the (higher) test interest rate.
The maximum mortgage is always higher as the mortgage interest rate falls, but that is not unlimited. The cut is at 1.50%. How much this saves becomes clear in the calculation example below.
Maximum mortgage in 2020 with gross annual income: $ 50,000 + $ 25,000:
- Mortgage interest rate 5 years fixed at 5% test interest: $ 349,278.
- Mortgage interest rate 10 years fixed at 1.50% interest: $ 389,357.
- Mortgage interest rate 10 years fixed at 1.51% interest: $ 415,943.
This may make it interesting to choose a more expensive mortgage. With an extensive mortgage calculation we help you put together the optimal mortgage.