Rabobank in doubt over Dutch mortgage proposals
Buyers may end up taking on personal loans to cover conveyancing fees and notary costs, says the Dutch bank.THE NETHERLANDS – The Rabobank Tuesday expressed reservations about the proposal by the Authority for the Financial Markets to tighten regulations governing mortgages.
The leading player in the Dutch mortgage market expressed concern for house buyers who will have to take on personal loans to cover the conveyancing fees and notary costs. Buyers will not be able to claim for tax relief, leaving them worse off.
Measures under the proposal include establishing a maximum loan of 100 percent of the value of a property for house buyers and homeowners who want to apply for a second mortgage.
The guideline that buyers should be allowed to borrow no more than 4.5 times their annual income will also be more strictly applied.
The announcement to tighten mortgage restrictions has been slammed by a number of associations.
The Dutch Real Estate Agents' Association and the Home Owners' Association have been highly critical of the move. The Home Owners' association described it as a "deathblow" for the housing market in the present economic climate.
While the Consumers' Association supports ending second mortgages, it is calling for strict supervision of mortgage advisers to avoid potential buyers from falling victim to mortgage advice not tailored specifically to their needs.
Radio Netherlands / Expatica