There are a lot of changes in the housing market in 2021. Hence, in this blog, we highlight the most important changes.
In 2021, the law changed so that first-time buyers no longer pay transfer tax. Normally, this tax consisted of 2% of the purchase price. This change will help starters on their way in this overheated housing market.
First, the lowest income counted for 80% when calculating the maximum mortgage. Since 2021, this has changed to 90%. This way, two-income earners can borrow more.
On a student loan, you pay no interest in many cases. This means that a student loan has a much lower impact on the maximum mortgage, than an ordinary consumer loan.
Since 2021, student debt will count for slightly less when applying for a mortgage. The weighting factor will depend on the average interest rate on the student loan over the last 5 years. First, this was a fixed percentage. This is favourable because the interest rate on a student loan has been incredibly low for years.
From 2021, mortgage interest deduction will be phased out at an accelerated rate. In 2020, the rate at which mortgage interest could be deducted was up to 46%. This rate has been brought down to 43% per cent since 2021. In 2022, it will become 40% and in 2023, it will be reduced to 36.9%.
Since 1-1-2021, a different energy label has been introduced. This requires an energy advisor to visit a property and then inspect it. This costs €190 for a house and €100 for a flat.
Since 2021, new houses will only receive planning permission if they meet the BENG standard. This means that conversions must be completed in a nearly energy-neutral manner.
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