New energy driven mortgage rules in 2024
2023/12/19 | By A&H Finance | Photo by Dreamstime
The end of the year is nearby which means time for family, friends, festivities and making new plans for 2024. If buying a house is one of your plans make sure you know what it takes. The rules for mortgages change every year so it’s important to know that all mortgage calculations that were made over 2023 will be different if you buy a house in 2024. What changes are there if you would like to buy a house next year? Let us point out a few and contact us if you want to know them all.
The big change: the energy label has an effect on your loan capacity
For example Patricia and Thomas with an income of €55,000 and €35,000 were eligible for a mortgage of €428,000- in 2023. They want to buy a house for this amount in 2024 but the house has an energy label E. The maximum mortgage loan in 2024 is €398,000-, which is a significant drop of 7% for the maximum mortgage. But if the energy label would have been A, the maximum mortgage would be €408,000,- and in case of energy label A++++ it will even increase to €438,000-.
For single buyer Brad with an income of €60,000- the energy label F gives an eligibility of €253,000 and the A++++ energy label is €295,000.
If you want to buy a new home, please let a mortgage broker like A&H Finance recalculate the mortgage possibilities for you, compare the different banks and renew the income statement for your bid. Normally, with indefinite contracts, a bid with a short financial clause is possible, if you are updated on your possibilities for 2024.
Sustainable housing is important for the future of our children and it’s expected that more and more governmental rules and funds will come to increase the energy label.
NHG applicable up to €435,000
Other news for 2024 is that the National Mortgage Guarantee fund (NHG), which gives you the lowest interest rate, is applicable up to €435,000. And for starters on the housing market between 18 and 35 years of age buying their first house no transfer tax of 2% needs to be paid for purchase prices up to €510,000.
Prepare your bid
You might think: so many rules… Indeed that is the case. So prepare your bid, ask for a quote and an income statement and walk through your mortgage possibilities. As soon as you are going to make a bid, you are ready for a smooth process and the seller will love that.
Martha wanted to buy her first apartment, the bid was not the highest, but the income statement with just a two week financial clause was the reason for the sellers to sell to Martha.
Happy to help you all the way
At A&H Finance the first mortgage conversation is free of charge. In this meeting your wishes and financial situation are the center point of the conversation. Our advisors present their services and the way they work. After this meeting you can start your search well informed. After having found the house of your dreams, we will be up to speed in no time helping you all the way.
We wish you a happy 2024 and best wishes for finding the house/apartment of your dreams! Our colleagues at A&H Finance are happy to help!