A&H Finance is one of the fastest growing companies of the Netherlands. Therefore it is awarded the FD Gazelle award by the Dutch financial newspaper Het Financieel Dagblad.
April 1, 2021, the start date of new regulations regarding the purchase of a house and the associated property transfer tax. From this date, an exemption from the transfer tax applies for a home with a maximum sale price of € 400,000, on the condition that the buyers are between 18 and 35 years old. The government has set this upper limit to prevent the higher segment from being stimulated to buy houses without transfer tax. This favorable scheme is specifically intended for starters on the housing market, so that they too get a chance to buy a home.
No transfer tax from April 1, 2021
Anyone between the ages of 18 and 35 and who buys a house between January 1st and 31 March 31st of this year pays no transfer tax. This 0% rate applied to every owner-occupied home regardless of the purchase price. As of April 1, you will not pay any transfer tax for a maximum purchase amount of € 400,000. As a starter, do you buy a house that is more expensive? Then you pay 2% transfer tax on the purchase price. The condition is that you become the residents of the owner-occupied home in all situations
Exemption to use once
The exemption from the transfer tax can only be used once but applies to everyone between the ages of 18 and 35. Have you previously bought a home but have not used this exemption? Then you do not pay transfer tax when purchasing a home under € 400,000.
One partner over 35 years old
Do you buy a house together and is one of the two partners older than 35 years, while the other falls in the 18-35 age category? The exemption from transfer tax is personal. In this case, you pay 0% transfer tax on half of the purchase price, and the rate of 2% on the other half.
Only live in the purchased home yourself
To be eligible for the exemption from the transfer tax to be paid, you must live in the house yourself and be between 18 and 35 years old at the time of passing by the notary. You must also have this recorded in writing at the notary. The exemption may only be used once.
Buying a property as an investment
Are you buying a property or home as an investment? Then you pay 8% transfer tax at the notary. Are your parents buying a home for you and your partner? They also pay this 8% rate
Find out about other beneficial changes to a 2021 mortgage.
We are happy to help
Call 020-4651951 or fill in our contact form for a first meeting.
Starting 2021 some government policy changes make it easier for you to buy your first house in the Netherlands. For instance transfer tax is cancelled under certain conditions and student debt is less heavily assessed than in past years. When you decide to buy a house with your partner this creates even more opportunities.
Mortgage opportunities in 2021
No tranfer tax for first time buyers
When you’re aged between 18 and 35 and buy a house valued less then €400.000 you don’t pay transfer tax at all. When you are over 35 a transfer tax of 2% over the value of the house is mandatory.
Higher NHG (national mortgage guarantee) rate
The maximum price of a house under the guarantee of NHG is higher then the year before. The maximum is set on € 325.000, that’s € 15.000 more than last year. You can buy more a higher value house with the guarantee and insurance the NHG offers. The premium for NHG costs 0,7% of the total mortgage sum. In addition, with installing energy-saving facilities you can even borrow up to € 344,500.
Student debt less heavily assessed
When you apply for a mortgage, your debts are an important factor for lenders. Even student debt are included as debt. Starting january 2021 a student debt is less heavily assessed by lenders who determine your maximum amount of mortgage.
Cohabitation: lowest income counts for 90%
For most households the maximum mortgage will be higher than previous years. When you apply with your partner and both incomes for a mortgage the lowest income still counts for 90% in the calculations of the lender. In previous years only the highest income was taken into account.
The advisors of A&H Finance can tell you a lot more about these favorable conditions in buying your first house in the Netherlands.
We are happy to advise you!
Call us on +31 (0)20-4651951 for a first introduction. Or fill in our contact form and we will contact you.
9am to 6pm (Mon-Fri)
Meetings also possible
after 6pm of course!
Your mortgage advice and arrangements can be organized in our office, by video-calls and/or phone.