Taking out a mortgage in 2021? These are the biggest changes
Are you planning to buy a (first) house in 2021? There are a few things to consider. Every year a number of things change in the area of mortgages and the housing market. Even if you already have a mortgage. Time for an update!
I intend to buy a house and take out a mortgage in 2021
Are you buying a house in 2021 and/or taking out a (new) mortgage? Then the following changes are important for you.
1. Transfer tax exemption
For buyers under 35 years of age, this is the best news: if you meet the right criteria, you will not have to pay any transfer tax as of this year. That makes a considerable difference to your wallet.
2. NHG threshold raised to € 325,000
Do you want to buy a house with a Nationale Hypotheek Garantie (in short NHG)? In 2021 you can do so on homes with a purchase price up to € 325,000. In 2020, this was still € 310,000.
3. Second income is given more weight
Good news for couples: from 2021, the second incomes of dual-income couples carry more weight when calculating your maximum mortgage. It will go up from 80% to 90% as of this year.
A calculation example:
Gross annual salary of applicant 1: € 50,000
Gross annual salary of applicant 2: € 40,000
DUO student debt: € 30,000
Maximum mortgage in 2020: € 433,000 (based on 1.7% interest)
Maximum mortgage in 2021: € 452,000 (based on 1.7% interest)
4. Student debt has less impact on your borrowing capacity
As of 2021, the impact of your student debt in the calculation of your maximum mortgage will decrease slightly. What that means for you depends on your specific situation.
I already have a mortgage, what will change for me?
Even if you already have a mortgage, quite a few things will change in 2021. We list the most important ones here.
1. Mortgage-interest tax deduction will decrease faster
Do you already have a mortgage and are you in the highest tax bracket (this is the case if your gross annual salary is over € 68,507.)? Then keep in mind that the tax deduction rate will fall at an accelerated pace, from 46% to 43%.
A calculation example:
Gross annual salary: € 90,000
Interest paid: € 10,000
Notional rental value (Eigenwoningforfait): € 3,000
Mortgage interest deduction in 2020:
(€ 10,000 – € 3,000) x 46% = € 3,220
Mortgage interest deduction in 2021:
(€ 10,000 – € 3,000) x 43% = € 3,010
Difference: € 210 per year
2. The Eigenwoningforfait will be lowered slightly
In 2021, the eigenwoningforfait (home owners tax) falls from 0.6% to 0.5% of the WOZ value (the act on the valuation of real-estate).
A calculation example:
Assuming a WOZ value of € 400,000
Eigenwoningforfait in 2020: € 400,000 x 0.6% = € 2,400
Eigenwoningforfait in 2021: € 400,000 x 0.5% = € 2,000
Difference: € 400
The difference in tax benefit in the 37.05% tax bracket = approx. € 148 per year.
It should be noted, however, that the WOZ value usually increases each year, which reduces the benefit.
3. Benefit of ‘Wet Hillen’ decreases (in case of no or low owner-occupied home debt)
From this year, only 90% of the addition to the eigenwoningforfait is deductible (benefit of the ‘Wet Hillen’).
4. Energy label will become more expensive
Are you going to sell your house this year? Then bear in mind that the energy label, which you are now required to arrange when selling, will become a lot more expensive. That’s because, from this year on, an expert will visit your home. An online application for the label will no longer suffice.