Housing Finance Policy

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A. Legal and Regulatory Framework

A.1 Legal and Regulatory Framework
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Basis of the legal system: Civil, Common, Islamic, Other? (Describe)CivilCivilCivilA.1.1
Are there specific laws that deal with mortgages? YesYesYes
Maastricht University
A.1.2
Registration/Transfer of titles:A.1.3
Does the law clearly define different types of property rights?YesYesYesA.1.3.1
 Are property rights easily transferable?YesYesYes
Dutch Civil Law
A.1.3.2
Typical number of days needed for the transfer of title2.52.52.5
WDI
A.1.3.4
Can liens be effectively enforced?YesYesYesA.1.4
Number of months until lender acquires the property in case of foreclosure on a single-family residential property?333
Government of the Netherlands
A.1.4.1
Cost of foreclosure process as a percentage of the value of a typical loan? Not availableNot availableNot available
 
A.1.4.2
Main causes of inefficiencies (legal, judiciary, administrative, cultural, etc.)Not availableNot availableNot available
 
A.1.4.3
Are there legal constraints on the types of mortgage products that are permitted?YesYesYesA.1.5
Are there legal constraints on mortgage features?  YesA.1.6
Interest rate capsYesNot availableNot available
World Bank
A.1.6.1
Loan-to-Value capYesYesYesA.1.6.2
Payment-to-Income maximumYesYesYes
DNB
A.1.6.3
Other  Not available
 
A.1.6.4
Are there consumer rights for mortgage lending? YesYesYesA.1.7
Are there disclosure requirements for mortgage lending?YesYesYes
Rabobank
A.1.8
Is there specialized legislation covering:A.1.9
Issuance of covered mortgage bondsYesYesYes
Dutch Association of Covered Bonds Issuers
A.1.9.1
Issuance of RMBSYesYesYes
Thomas Reuters Practical Law
A.1.9.2
B. Housing Finance Subsidies
B.1 Subsidies to Housing Finance Institutions
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Are there subsidized funding sources for mortgage lenders?YesYesYes
Country Editor
B.1.1
Special government lines of credit NoNoNo
Country Editor
B.1.1.1
Government supported liquidity facilityNot availableNot availableNo
 
B.1.1.2
Labor or other tax funds for mortgage lendingNot availableNot availableNot available
 
B.1.1.3
Tax breaks on mortgage bonds or RMBSNot availableNot availableNot available
 
B.1.1.4
Loss and/or cash flow guarantees for RMBSNot availableNot availableNot available
 
B.1.1.5
OtherNot availableNot availableNot available
 
B.1.1.6
Is the lending side of the housing finance system subsidized?YesYesYes
Country Editor
B.1.2
Shared credit risk through public/private mortgage insurance YesYesYes
Bank of International Settlements
B.1.2.1
Guarantees for mortgage loansYesYesYes
National Mortgage Guarantee
B.1.2.2
OtherNot availableNot availableNot available
 
B.1.2.3
B.2 Subsidies to Households
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Are there subsidies to households on housing finance?YesYesYes
OECD
B.2.1
Interest rate subsidies by special government fundsYesYesYes
DNB
B.2.1.1
Buy-down of monthly/interest paymentsYesYesYes
IMF
B.2.1.2
Down-payment subsidies Not availableNot availableNot available
 
B.2.1.3
Subsidies to savings for mortgage loansYesYesYes
IMF
B.2.1.4
Mortgage interest deductibility from income taxYesYesYes
IMF
B.2.1.5
OtherYesYesNot available
IMF
B.2.1.6
Reach of subsidies in 2.1.1 to 2.1.4 ?B.2.2
What is the highest income decile targeted?Not availableNot availableNot available
 
B.2.2.1
What is the lowest income decile targeted? Not availableNot availableNot available
 
B.2.2.2
What proportion of loans is affected by the subsidies in 2.1.1 to 2.1.4?Not availableNot availableNot available
 
B.2.2.3
What proportion of loans on main residences is affected by the mortgage interest deductability in 2.1.5?Not availableNot availableNot available
 
B.2.3
C. Taxation
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
What taxes apply to Residential Real Estate?C.1
Tax on property (home-owners) YesYesYes
Deloitte
C.1.1
Property transaction taxes (purchase/selling)YesYesYes
Deloitte
C.1.2
Mortgage transaction taxesNot availableNot availableYes
 
C.1.3
Tax on mortgage interest pmtsNot availableNot availableYes
 
C.1.4
Tax on capital gains on property NoNoNo
Deloitte
C.1.5
OtherYesYesYes
Global Property Guide
C.1.6
Are there tax benefits on rental properties?Not availableNot availableNot available
 
C.2
Describe tax benefits (if any) from C.1.2A once in a life-time gift tax exemption of up to EUR 100,000 for a house purchase was in effect from October 2013 until the end of 2014, and has been reintroduced and made permanent as of January 1, 2017A once in a life-time gift tax exemption of up to EUR 100,000 for a house purchase was in effect from October 2013 until the end of 2014, and has been reintroduced and made permanent as of January 1, 2017Not available
IMF
C.2.1
back to top | Country Data:
Notes: €248,325. IMF annual average market exchange rate for 2007 used (€0.73 = 1 USD).
Notes: €252145. IMF annual average market exchange rate for 2008 used (€0.68 = 1 USD). E248000 1st Q 2010; 3.2% below 1st Q 2009.
Notes: 1956; Nationale Hypotheek Garantie is a private guarantor that receives support from the state. It is not an insurer and can claim back losses from former owners. It is not supervised by the Central Bank.
Notes: 2010=100
Notes: 2010=100
Notes: 2010=100
Notes: In addition, interest accrcruing on principle payments deposited in special savings or investment accounts are tax excempt.
Notes: LTVs are high because of the high upfront transaction costs and taxes. LTV's are calculated on the foreclosure value rather than the marketprice. Average LTV on total outstanding mortgages is 40%.
Notes: -0.02%
Notes: -0.26%
Notes: -0.32%
Notes: -0.33%
Notes: 100% deduction for pre-2013 loans and post-2013 fully amortizing loans (within 30 yrs).
Notes: 100% interest deductions
Notes: 100% interest deductions
Notes: 16% from insurers, 24% from pension funds
Notes: 19% from insurers, 24% from pension funds
Notes: 1956; Nationale Hypotheek Garantie is a private guarantor that receives support from the state. It is not an insurer and can claim back losses from former owners. It is not supervised by the Central Bank.
Notes: 1956; Nationale Hypotheek Garantie is a private guarantor that receives support from the state. It is not an insurer and can claim back losses from former owners. It is not supervised by the Central Bank.
Notes: 2010=100
Notes: 2010=100
Notes: 2010=100
Notes: 2010=100
Notes: 2010=100
Notes: 2010=100
Notes: 25% of the overall market share belongs to insurance companies. 12% belongs to state municipalities and private persons.
Notes: 30 firms fund mortgage loans; approximately 60 brands originate mortgages
Notes: 30 firms fund mortgage loans; approximately 60 brands originate mortgages
Notes: 5% from insurance group banking subsidiaries, 8% from insurance companies, 3% from pension funds, 8% from other domestic and international parties
Notes: 6% transfer tax on existing homes; 19% VAT on new homes
Notes: 6% transfer tax on existing homes; 19% VAT on new homes
Notes: ABN AMRO / Fortis was taken over by the state in 2008 (intended to be a temporary measure); ING received state support.
Notes: all areas, not just urban
Notes: all areas, not just urban
Notes: all areas, not just urban
Notes: all areas, not just urban
Notes: all areas, not just urban
Notes: all areas, not just urban
Notes: all areas, not just urban
Notes: all areas, not just urban
Notes: Approximately 30% of outstanding mortgages are securitized; after 2008 this proportion fell.
Notes: Approximately all transactions costs are 10% of the home value including 6% transfer tax for existing homes. This is an estimate in a context of fierce competition on fees
Notes: As of 2010 the max LTV is 112% and is allowed only for NMG guaranteed mortgages.
Notes: As of 2010 the max LTV is 112% and is allowed only for NMG guaranteed mortgages.
Notes: As of July 1, 2009, the cost limit increased up to 48,611.10 USD, meaning that the NMG reaches 80% of the housing market.
Notes: Besides real estate taxes, municipal authorities levy other taxes and charges such as building charges that are related to building permits. Such charges can be very high so a critical review is advised before payments are to be made. Other possible taxes include polder board taxes orland-draining rights, wastewater pollution tax and sewage system tax, sufferance tax, refuse matter tax, groundwater tax, ecological taxes and the energy tax. These taxes and their rates vary from municipality to municipality, so consultation with makelaar or notaris is necessary.
Notes: borrower has to pay upfront fee of 0.7% of the mortgage amount for the NHG
Notes: Converted from EURO to USD using yearly exchange rates
Notes: Converted from EURO to USD using yearly exchange rates
Notes: Converted from EURO to USD using yearly exchange rates
Notes: Converted from EURO to USD using yearly exchange rates
Notes: Converted from EURO to USD using yearly exchange rates
Notes: Converted from EURO to USD using yearly exchange rates
Notes: Converted from EURO to USD using yearly exchange rates
Notes: Converted from EURO to USD using yearly exchange rates
Notes: Converted from EURO to USD using yearly exchange rates
Notes: Converted from EURO to USD using yearly exchange rates
Notes: Converted from EURO to USD using yearly exchange rates
Notes: Converted from EURO to USD using yearly exchange rates
Notes: Deduction of mortgage interest payments. There is a maximum deduction percentage of 51% in 2015. This maximum is reduced by 0,5%-point every year until it reaches 38%. The interest deductibility is conditional on amortization: at least based on an annuity scheme with a 30-years repayment scheme
Notes: Discount on purchase price of a formerly rental home.
Notes: Discount on purchase price of a formerly rental home.
Notes: Dutch Mortgage Law
Notes: Estimate from 2 to 3.
Notes: Estimate from 2 to 3.
Notes: Estimate from 2 to 3.
Notes: Estimate.
Notes: Estimate; ABN AMRO label.
Notes: Estimate; ABN AMRO label.
Notes: Growth rate is on a national scale.
Notes: Growth rate is on a national scale.
Notes: Growth rate is on a national scale.
Notes: Growth rate is on a national scale.
Notes: If a property is rented out, a flat rate tax of 30% is levied based on the assumption that a taxable yield of 4% is made on the asset. This results in an annual tax of 1.2% of the value of the asset.
Notes: If a property is rented out, a flat rate tax of 30% is levied based on the assumption that a taxable yield of 4% is made on the asset. This results in an annual tax of 1.2% of the value of the asset.
Notes: If a property is rented out, a flat rate tax of 30% is levied based on the assumption that a taxable yield of 4% is made on the asset. This results in an annual tax of 1.2% of the value of the asset.
Notes: If a property is rented out, a flat rate tax of 30% is levied based on the assumption that is taxable yield of 4% is made on the asset. This results in an annual tax of 1.2% of the value of the asset.
Notes: IMF annual average market exchange rate for 2009 used (€0.72 = 1 USD).
Notes: IMF annual average market exchange rate for 2009 used (€0.76 = 1 USD).
Notes: IMF annual average market exchange rate for 2011 used (€0.78 = 1 USD).
Notes: IMF end of period market exchange rate for December 2007 used (€0.68 = 1 USD).
Notes: IMF end of period market exchange rate for December 2008 used (€0.72 = 1 USD).
Notes: IMF end of period market exchange rate for December 2009 used (€0.69 = 1 USD).
Notes: IMF end of period market exchange rate for December 2010 used (€0.75 = 1 USD).
Notes: IMF end of period market exchange rate for December 2011 used (€0.77 = 1 USD).
Notes: In 2016, securitisations fell further behind covered bonds as a funding source for Dutch banks. The amount outstanding in external securitisations fell by 11% to EUR 50 billion, EUR 47 billion of which relates to residential mortgage loans. The amount outstanding in covered bonds in 2016 on the other hand climbed by 10% to EUR 67 billion
Notes: In 2016, securitisations fell further behind covered bonds as a funding source for Dutch banks. The amount outstanding in external securitisations fell by 11% to EUR 50 billion, EUR 47 billion of which relates to residential mortgage loans. The amount outstanding in covered bonds in 2016 on the other hand climbed by 10% to EUR 67 billion
Notes: In addition, interest accrcruing on principle payments deposited in special savings or investment accounts are tax excempt.
Notes: In addition, interest accrcruing on principle payments deposited in special savings or investment accounts are tax excempt.
Notes: Interest only mortgage with a 5 year fixed rate calculated over a 30 year term is the prevalent mortgage product. Tax incentives gave rise to different types of mortgage products where interest is paid to the lender and principle payments are deposited in tax excempt savings, investment and/or insurance accounts at third party institutions. Principle payments may or may not amortize the loan. Interest payments can be variable or fixed for different period between 5 and 30 years.Most mortgages have fixed interest rates.
Notes: Interest only mortgage with a 5 year fixed rate calculated over a 30 year term is the prevalent mortgage product. Tax incentives gave rise to different types of mortgage products where interest is paid to the lender and principle payments are deposited in tax excempt savings, investment and/or insurance accounts at third party institutions. Principle payments may or may not amortize the loan. Interest payments can be variable or fixed for different period between 5 and 30 years.Most mortgages have fixed interest rates.
Notes: Interest paid on a mortgage is tax deductible for up to 30 years.
Notes: Interest paid on a mortgage is tax deductible for up to 30 years.
Notes: Interest paid on a mortgage is tax deductible for up to 30 years.
Notes: Interest paid on a mortgage is tax deductible for up to 30 years.
Notes: It is currently 103% and will decrease by 1% every year until it is 100%
Notes: Law Financial Supervision
Notes: Law Financial Supervision
Notes: Law Financial Supervision
Notes: Law Financial Supervision
Notes: Law Financial Supervision
Notes: Law Financial Supervision
Notes: Law Financial Supervision
Notes: Level 2009: 2235 arrears for 120 days or more past due.
Notes: LTVs are high because of the high upfront transaction costs and taxes. LTV's are calculated on the foreclosure value rather than the marketprice. Average LTV on total outstanding mortgages is 40%.
Notes: Maximum LTV for NMG guaranteed mortgages.
Notes: Municipal authorities levy property tax on all immovable properties, based on the council-rated value which is determined yearly. The rate varies depending on location.
Notes: Municipal authorities levy property tax on all immovable properties, based on the council-rated value which is determined yearly. The rate varies depending on location.
Notes: Municipal authorities levy property tax on all immovable properties, based on the council-rated value which is determined yearly. The rate varies depending on location.
Notes: Municipal authorities levy property tax on all immovable properties, based on the council-rated value which is determined yearly. The rate varies depending on location.
Notes: Municipalities and the state back up the Guarantee Fund until 2011. After 2011 only the state will provide back up.
Notes: Municipalities and the state back up the Guarantee Fund until 2011. After 2011 only the state will provide back up.
Notes: Municipalities and the state back up the Guarantee Fund until 2011. After 2011 only the state will provide back up.
Notes: National minimum wages, including non-urban areas
Notes: National minimum wages, including non-urban areas
Notes: National minimum wages, including non-urban areas
Notes: National minimum wages, including non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: notary, real estate agent, taxation
Notes: Number of arrears after 120 days in terms of outstanding NHG mortgage loans.
Notes: Number of arrears after 120 days in terms of outstanding NHG mortgage loans.
Notes: Percentage of people living in owner occupied homes
Notes: Percentage of people living in owner occupied homes
Notes: Percentage of people living in owner occupied homes
Notes: Percentage of people living in owner occupied homes
Notes: Percentage of people living in owner occupied homes
Notes: Phased out in 2010
Notes: Phased out in 2010
Notes: PMT-to-income on € 100.000 household income, given 5.25% interest rate.
Notes: PMT-to-income on € 100.000 household income, given 5.25% interest rate.
Notes: Price discount for purchasing social rental houses under special schemes of housing associations.
Notes: Privacy law.
Notes: Purchase subsidies for low incomes will be phased out in 2010; interest free loans for first time buyers in a number of municipalities.
Notes: Sale prices of houses, converted from EURO to USD with average exchange rate
Notes: Sale prices of houses, converted from EURO to USD with average exchange rate
Notes: Sale prices of houses, converted from EURO to USD with average exchange rate
Notes: Sale prices of houses, converted from EURO to USD with average exchange rate
Notes: Sale prices of houses, converted from EURO to USD with average exchange rate
Notes: Sale prices of houses, converted from EURO to USD with average exchange rate
Notes: Sale prices of houses, converted from EURO to USD with average exchange rate
Notes: Sale prices of houses, converted from EURO to USD with average exchange rate
Notes: Sale prices of houses, converted from EURO to USD with average exchange rate
Notes: Sale prices of houses, converted from EURO to USD with average exchange rate
Notes: Sale prices of houses, converted from EURO to USD with average exchange rate
Notes: Sale prices of houses, converted from EURO to USD with average exchange rate
Notes: Sale prices of houses, converted from EURO to USD with average exchange rate
Notes: Sale prices of houses, converted from EURO to USD with average exchange rate
Notes: Sale prices of houses, converted from EURO to USD with average exchange rate
Notes: Sale prices of houses, converted from EURO to USD with average exchange rate
Notes: Sale prices of houses, converted from EURO to USD with average exchange rate
Notes: Sale prices of houses, converted from EURO to USD with average exchange rate
Notes: Sale prices of houses, converted from EURO to USD with average exchange rate
Notes: Sale prices of houses, converted from EURO to USD with average exchange rate
Notes: Subsidies are provided for first time home-owners and low-income households; estimate at less than median income.
Notes: Subsidies are provided for first time home-owners and low-income households; estimate at less than median income.
Notes: Tax on imputed rental income for owned homes.
Notes: Tax on imputed rental income for owned homes.
Notes: Tax on profit gains social rental sector.
Notes: Tax on profit gains social rental sector.
Notes: The financial supervisor (AFM) established rules that require lenders to inform the customer of the most suitable mortgage options available.
Notes: The financial supervisor (AFM) established rules that require lenders to inform the customer of the most suitable mortgage options available.
Notes: The financial supervisor (AFM) established rules that require lenders to inform the customer of the most suitable mortgage options available.
Notes: The number is decreasing since subsidy funds are drying up.
Notes: The number is decreasing since subsidy funds are drying up.
Notes: There is no centralized coduit or liquidity facility in Netherlands.
Notes: Transfer tax is levied at a rate of 2% for private residences and 6% for other immovable properties.
Notes: Transfer tax is levied at a rate of 2% for private residences and 6% for other immovable properties.
Notes: Transfer tax is levied at a rate of 2% for private residences and 6% for other immovable properties.
Notes: Transfer tax is levied at a rate of 2% for private residences and 6% for other immovable properties.
Notes: Transfer tax on existing homes of 6% of the market value of the house.
Notes: With the invention of Conditional Pass-Through (CPT) covered bonds, the relative attractiveness of RMBS as funding instruments has fallen further as several (mainly smaller) issuers were now also able to enter the covered bond market.