2025: Changes in the Dutch Housing Market

As 2024 ends, new regulations for the Dutch housing market in 2025 are already set, bringing with them a range of changes that aim to improve affordability, and adjust to the dynamic real estate market of the Netherlands. Whether you're a first-time buyer, an investor, or planning your next property purchase, understanding these updates is crucial for making informed decisions in the year ahead.

National Mortgage Guarantee (NHG)

When purchasing a home, you can opt for a mortgage backed by the National Mortgage Guarantee (NHG), which allows you to have the lowest possible interest rate and reduce potential risk. If unexpected circumstances, like job loss or illness, cause you to struggle with payments, NHG provides a safety net. If you need to sell your home but the sale price doesn't cover your mortgage, NHG will cover the difference, ensuring you're not left with the remaining debt.

In 2025 the costs and conditions of taking out a mortgage with a National Mortgage Guarantee are the following:

• Higher Eligibility Limit: The maximum property value eligible for NHG will rise from €435,000 to €450,000, with an even higher threshold of €477,000 for homes with energy-efficient upgrades (106% of the house market value). This change expands NHG access to a larger segment of the housing market, especially in areas with rising property prices.

• Lower Guarantee Fee: The upfront fee for obtaining NHG will drop from 0.6% to 0.4% of the mortgage amount. For example, on a €300,000 mortgage, buyers will save €600. This reduction lowers entry costs, particularly benefiting first-time buyers.

• Support for Sustainability: The increased NHG limit for energy-efficient homes reinforces government goals to incentivize green housing, promoting upgrades like better insulation or renewable energy installations. You can get additional 6% more of the house market value for energy-efficient investments, up to €477,000.

These changes position the NHG as a more attractive option for buyers navigating an increasingly competitive market, especially those seeking energy-efficient properties.

Transfer Tax

Transfer tax (overdrachtsbelasting) is the biggest cost for property buyers, calculated as a percentage of the property purchase price. For 2025, changes focus on supporting first-time buyers while maintaining stability for others:

• First-Time Buyer Exemption: The 0% transfer tax exemption applies for first-time buyers aged up to 35 years old, and to homes valued at up to €525,000, an increase from €510,000 in 2024. This adjustment provides greater flexibility for young buyers facing higher housing costs. However, buyers must meet the age and property value criteria to qualify.

• Standard Rates for Residential Buyers: The standard transfer tax rate for owner-occupied residential properties remains unchanged at 2%. If you are above 35 years old, or the house is more than €525,000, or you are second time buyer.

• Rates for Investors and Non-Owner-Occupied Properties: Investors will continue to pay the higher 10.4% transfer tax rate through 2025. However, this rate will decrease to 8% in 2026, influencing decisions for those considering long-term investments..

The updates to the NHG and transfer tax regulations for 2025 highlight the Dutch government’s focus on accessibility and sustainability in housing. First-time buyers stand to benefit significantly, with reduced costs and expanded support through National Mortgage Guarantee and tax exemptions. Meanwhile, predictable transfer tax rates provide clarity for other buyers and investors. Whether you're purchasing your first home or planning an investment, understanding these changes is essential for making the most of the opportunities in 2025.

Feel free to contact us for a free video consultation, where we’ll walk you through the entire mortgage and home-buying process. We’ll also calculate your maximum mortgage capacity and explore your options for purchasing a home in the Netherlands.