The parties and the mortgage interest deduction

It is always good to know what a party stands for, but if there is a moment when we can use the red pencil, we must know what they stand for. The mortgage interest deduction has been a hot item for years and will continue to be so. Many people have at some point adjusted their mortgage to the net mortgage costs and many people who are or will be working on a home often take the net burden into account. How realistic this remains remains to be seen, the 2010 House of Representatives elections can clearly offer an offer.

Basic mortgage interest deduction

Strictly speaking, it is better to fix your mortgage on your gross costs. If this is financially feasible (according to the set standard), then the money you get back from the tax is an extra and you can use it for, for example, the maintenance of your home. But many people already receive the amount of tax back every month (provisional refund) and they also need it to finance a home. Because mind you, the Dutch government has encouraged us to buy en masse for years and renting has been out of favor for a long time. This also means that we have responded en masse to this. If at any time the mortgage interest deduction disappears partially or completely, it will be very difficult for many to continue to afford their home. The parties have been divided for years about how to tackle this. Strictly speaking, they all realize that something has to be done, but the measures are divided. A summary of the principles of most parties.

What do the parties think about it?

VVD – Abstain from mortgage interest deduction and abolish transfer tax as a temporary incentive. CDA – Absence from the mortgage interest deduction. However, the question has been asked where possible savings can be made. PvdA – Action must be taken and that could mean abolishing it, in whole or in part. Possibly some kind of subsidy for a specific target group. SP – Limit to mortgages up to 350,000. Mortgages above this no longer benefit from deduction. D66 – Limit the mortgage interest deduction. Limit to 30% sun. Groen Links – The system must ultimately be phased out in its entirety. This should take place within a period of about 25 years. SGP – The entire tax system must be redesigned, the mortgage interest deduction should be limited and taxes reduced (must be able to compensate for it). Make the transfer tax disappear. Christian Union – Maximum of 42% on new mortgages. Ultimately, it must become a fairer (in terms of income) system. Starters should not have to pay transfer tax. PVV – Do not change the mortgage interest deduction, leave it in its entirety. Party for the animals – Limit to housing up to 1 million. Above that, no more mortgage interest deduction. Proud of the Netherlands – Stay away from the mortgage interest deduction for the time being and review it later. Abolish the transfer tax.

Finally

It remains to be seen whether it will be disastrous that the mortgage interest deduction may be abolished. Politicians have ideas about this, but they too cannot look at the coffee grounds. However, we must take into account that sooner or later the mortgage interest deduction will partly or completely disappear. This also means that we must also have it calculated whether we can cover the gross monthly costs for the mortgage. It is certain that the market will change, but to what extent it will change in the short or long term remains to be seen. The balance in the overstressed mortgage and housing market must come to an end at some point, and whether the mortgage interest deduction will play an explicit role in this is a matter of time.