Dutch parliament raises mortgage guarantee

10th December 2008, Comments 0 comments

In a move to encourage banks to give more loans, the national mortgage insurance guarantee will be raised to EUR 350,000.

THE NETHERLANDS – A majority in the Dutch lower house, including the coalition partners the Christian Democrats and the Labour Party, voted Tuesday in favour of a proposal by the conservative VVD temporarily to increase the national mortgage insurance guarantee to EUR 350,000.

The measure will guarantee that banks and other financial institutions get their money back if a borrower defaults on payments, and encourage banks to hand out loans more easily.

At present, mortgage insurance guarantees are only available for properties worth a maximum of EUR 265,000.

The Association of Dutch Project Developers says it expects around 70 percent of new residential properties to be covered by the new measure.

[Radio Netherlands / Expatica]

0 Comments To This Article