Posted by Brian Mason on June 10, 2019
How much can you borrow in 2019? The mortgage standards are known. What will change this year? And calculate the maximum mortgage you can get.
The mortgage standards for 2019 are known
The mortgage standards determine how much you can borrow this year. What is the maximum mortgage on the basis of the home value and the income in 2019? If you opt for Good Lender or energy-saving measures, the standards are slightly different. Wondering how much you can borrow?
Do not borrow more than the home value
Since last year, you cannot borrow more than the house value. This means that you have to pay the full buyer costs, about 5 to 6% of the purchase price, from your own pocket. This is particularly difficult for starters who have not saved much (or with study debt). They often knock on the door of their parents or borrow extra for consumption.
The good news is that the maximum mortgage on the basis of the home value in 2019 has not fallen any further. It has been agreed in the coalition agreement that the borrowing standard will remain at 100% until 2021.
Low and high incomes can borrow more in 2019
How much you can borrow based on your income is determined every year on the advice of Good Finance. The average income and expenditure of households is taken into account. Financing burden percentages determine how much of the income you can spend on the mortgage.
An examination of the financing burden percentages for 2019 shows that these have largely remained the same. Only incomes up to 28,000 euros can borrow a little more this year based on income. Yet for many households, the maximum mortgage will increase in 2019. This is because Good Finance takes into account an average wage increase of 2.9%. This has the following effect on how much you can borrow:
Small change in maximum ‘green’ mortgage
A small change will be made to the maximum mortgage for a climate-neutral house in 2019. Slightly less can be borrowed for a house with an energy performance coefficient of 0 or lower. Maximum 20,000 euros on top of the financing burden. For a zero meter home this remains the same at 25,000 euros.
Read how you can borrow extra with energy-saving measures.
The Good Lender limit is expected to follow the house price
The cost limit for an Good Lender mortgage rose again in 2019. This Good Lender limit is after all linked to the average house price and it is still rising. This year you can take out an Good Lender mortgage for owner-occupied home up to 290,000 euros. Reprocessing with Good Lender is possible up to a mortgage amount of 290,000 euros. If you take energy-saving measures, the cost limit is 307,400 euros
In this way, starters also continue to have the option of taking out a mortgage with a Good Finance. In addition, the foundation is aiming for new target groups behind the guarantee. With Good Lender, elderly people and entrepreneurs are more likely to be eligible for a mortgage.