End-of-year crowds are threatened by new mortgage standards. Start your application for a mortgage on time under the current rules. Waiting can also be interesting.
Benefit from the current mortgage standards
The mortgage standards will be slightly stricter next year. In 2018 you cannot borrow more than the house is worth. Now the maximum mortgage is 101% of the home value. This means that you have to contribute more own money for the mortgage. For a home of € 250,000 around € 2,500.
In addition, the interest deduction for a residual debt financing will be canceled next year. Relocation with a residual debt will therefore become more expensive.
These may be reasons to buy that one house in 2017 or to relocate it, because that too is being tested against the currently applicable mortgage standards.
Binding mortgage offer required
Since last year, the binding mortgage offer has determined whether you fall under the old or new mortgage standards. Previously, a provisional quotation was sufficient to establish the old mortgage standards.
To get used to this new way of working, last year the deadline for the binding offer was extended by one month. This year there is no transition period for the new mortgage standards. Update: there will nevertheless be a transition period for the mortgage standards.
Be ahead of the busy season
This means that you must have a binding mortgage offer from the bank before 31 December in order to be able to use the old mortgage standards. Don’t think now: ‘oh, that will take 10 weeks’.
For a binding mortgage offer, all mortgage documents must be complete and approved. In addition, lenders receive many applications at the end of the year.
A mortgage within a week sounds nice, but this is rarely achieved. For a somewhat complex case (freelancer, flexible contract) or a rejected or missing mortgage document, you have to add a few more weeks.
Be ready for the end of the year and start your mortgage application before mid-November.
Reasons to postpone your mortgage plans
There are also reasons to postpone your mortgage plans until next year:
- The mortgage interest rate remains at the current low level for the time being.
- Double earners can borrow more next year.
- Next year you can borrow more under the National Mortgage Guarantee.