The rules around buying a house change every year. We have listed three issues that we deal with on a daily basis.
NHG
As a first-time buyer, you can opt for a mortgage with National Mortgage Guarantee (NHG) if the property does not cost more than € 355,000. This gives you the certainty that your mortgage is in balance with your income and that you have a safety net if any drastic changes in your life make it impossible for you to pay your mortgage. An additional advantage is that the interest rate for this type of mortgage is often lower than for a regular mortgage.
By 2023, the upper limit for an NHG mortgage will be € 405.000,-.
First-time buyer’s exemption
As a first-time buyer, there’s a chance you will not need to pay stamp duty. You will need to meet the following conditions:
- Be under the age of 35;
- The property must not be over € 400.000,-;
- You will be living in the house yourself for a longer period of time;
- You have not previously made use of the first-time buyer’s exemption allowance.
Do you already own a house? If you meet the above conditions, you may still qualify for this exemption.
As from 2023, the upper limit for the starter’s exemption will increase to a maximum of € 440.000,-.
Parental gift to children
In 2022, parents are allowed to gift a tax-free allowance of € 5,677 to each child (foster and stepchildren are also covered by this scheme). The children’s ages do not matter.
You may gift your child a one-off higher tax-free amount. This can be used for three spending purposes:
-
- o A gift whereby the child decides on how to spend the money. The maximum amount for this allowance is € 27.231,-.
- o A gift for the purpose of financing an expensive course of study. The maximum amount for this allowance is € 56.724,-.
- o A gift for the purpose of financing a property. The maximum amount for this allowance is € 106.671,- (the so-called ‘jubelton’ allowance).
Please note! The higher exemption is not in addition to the standard tax-free allowance of € 5.677,- but replaces that allowance.
As from 2023, the limit for tax-free gifts for the purpose of buying a property will be reduced to a maximum of € 28.947,-. As from 2024, this gift exemption will be abolished altogether.
Buying a property for your child who’s studying? Take a look at the 10 most frequently asked questions about the homeowner scheme in Utrecht.
This article provides a summary by topic. For a comprehensive list of all allowances, we recommend that you contact us.
Menno Grandia
NVM buyer’s agent