Maximise your borrowing capacity
As we come to the end of one year, it’s always a good idea to look ahead to the next and take stock of what will change, especially for those of you hoping to buy a house in the Netherlands in 2025.
There are a few changes on the horizon for 2025, most of which will affect how much you can borrow. So, I thought it would be useful to go through some of the steps you can take to maximise your borrowing capacity, particularly if you’re concerned about rising house prices.
To begin with, keep an eye on the energy label of any properties you’re interested in. If you opt for a property with a high energy label, you can borrow more money from the bank, as you will spend less on electricity and possibly gas. For example, if it’s an A+ or A++ property, you can borrow an additional €20,000 on top of the amount determined by your salary.
A Low Energy Label Is Not a Problem
However, don’t worry if the property has a low energy label. In that case, you can still borrow more money—not to buy the property itself, but to invest in energy-saving improvements. The lower the energy label, the more you can borrow.
So, if the property has a label of E, F, or G, you can borrow an additional €20,000. Even if the home is highly efficient with an A+ label, you can borrow an extra €10,000 to make it even more environmentally friendly! This extra amount is placed into a special fund, so you won’t see it on your bank statement, but you can access it when you begin making improvements, which must be completed within two years.
Extra Borrowing for Singles
If you’re single, you will also be able to borrow more. This was already the case this year, but in 2025, the extra allowance for singles will increase to €17,000. This top-up is only available to singles, however, so a couple with only one earner will not benefit from this boost, which might seem unfair.
Special Rules for Under-35s
For those under 35 who haven’t previously bought a property, you will still be exempt from paying property transfer tax next year. The limit for this exemption will rise from €510,000 to €525,000, which is above the current average asking price for a property.
It’s also worth noting that there is no transfer tax on newly built properties, and since these typically have very high energy labels, you can borrow a bit more on top.
Impact of the 30% ruling
If you benefit from the 30% ruling, you may not be able to borrow more, as it’s your gross salary that determines how much the bank will lend. While your disposable income may be higher for up to five years, banks are considering what will happen after the five years, when the tax break ends and your disposable income decreases.
How parents can help
Another question I often get asked is about receiving money from parents who live abroad. If your parents have the capital available, they can give you as much as they like towards buying a house, and you won’t have to pay tax on it, which would be the case if your parents were living in the Netherlands.
If your parents live in the Netherlands, they can give you a one-off gift of around €32,000 in 2025, plus an additional €6,700 per year. The exact figures will be published at the end of December. Your parents in the Netherlands could also lend you a large sum and gift you the interest that you would otherwise have to pay them on an annual basis.
A 30-minute meeting
When you consider all the ways to boost your borrowing capacity, it’s easy to see why, when someone comes to me to discuss a mortgage, I always schedule a 30-minute call to go through the numbers with them.
During this call, I can explain their particular situation, calculate their maximum mortgage amount, and outline any additional sums they can borrow. After all, it’s the one question everyone planning to buy a house wants to know:”What’s my budget?”
