Interbranch wipe the floor with the proposal of the Financial Stabiliteitscomité (FSC) to the maximum amount people can borrow should be lowered to 90% of the value of that house
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The proposed reduction of the Loan-to-Value (LTV) cap is necessary to prevent homeowners are left with a residual debt if re crisis arises. The FSC, which DNB president Klaas Knot chairman, today sent an advisory to the House. Since then it rained reactions. Even advisory CPB seems critical; The government will not change the mortgage rules.
‘Schadelijk’
The Dutch Banking Association (NVB) is the’onnodig and onverstandig’ to lower the maximum further. “A further statutory reduction of the LTV is therefore, according to the banking association is not necessary and because of the adverse effects on the housing unwise,” the NVB says.
‘Overbodig’
The Association Homeowners (VEH) will reduce the maximum amount people can borrow for a home is a bad idea, but above all unnecessary. According to the VEH there already is a system where people who take out mortgage relief would directly. “With the current system of repayment is the ratio of mortgage debt and the value of the property already guaranteed.”
‘Zeer negatief’
Also, industry organizations NVM and VBO Broker see anything in it proposal. “A reduction to below 100 percent we find undesirable,” says NVM chairman Ger Hukker. According NVM will be a shortage of rental housing. “Overall the FSC of the plan has a very negative effect on the housing market.”
“not in the interests of consumers and the housing market,” FEB. “Judge Many residential consumers, especially start-ups, will have to stabbing themselves for the purchase of a home and the buyer’s cost than through a consumer credit much further into debt. “
Buy home postpone
Employers’ organizations VNO-NCW and SME Netherlands: “A further reduction will lead to start-ups should delay buying their first home with five to seven years. Also threatens a fall in house prices, which opkrabbelen net again. “
Consultant CPB critical
Even the Central Planning Bureau (CPB), which as an external expert participated in the deliberations, seems critical . The advisory suggests that quantifying the benefits of the measure are difficult and financial stability “in our estimation promote limited”. But the costs may be considerable, “says the CPB.
Nothing change
The government wants this reign not change the mortgage rules and limits to borrow. That allowed ministers Stef Block (Housing) and Jeroen Dijsselbloem (Finance) today announced in response. Dijsselbloem indicates that hypotheeklimiet (relative to the purchase price) is stapsgewijs afgebouwd of 106 percent up to 100 percent in 2018. “For the next few years is therefore clear . Any further steps and weighing around this time I – in accordance with the recommendation of the FSC -. On to the next cabinet ”
FSC
The Financial Stabiliteitscomité speaking representatives of De Nederlandsche Bank (DNB), the Netherlands Authority for the Financial Markets (AFM) and the Ministry of Finance at least twice a year under the leadership of DNB president Klaas Knot on developments in the stability of the Dutch financial system. Knot advocates for years that homeowners no more than 90 percent would be allowed to borrow the value of their home. The FSC is there in December has already talked about it.
More Home & amp; Mortgage
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You give your home as collateral, the bank is the first creditor for the IRS. And then to top it all off the remaining debt depends also on you personally. In which part of the world works that way anyway?
The only one who speaks the truth and the bubble in housing prices denounces. That a family starter home can not buy is only due to the height of the house price. Towns, brokers and government cheat and speculate on land prices and will therefore jointly do everything to maintain the bubble and the misery.
This starters and modal buyers would be duped. With an average income do not qualify for social housing and get enough mortgage to buy a decent house. The private rented sector is priceless!
Read: the banks are willing to lend money only 0.0% carry risk. Next step: only buy a house with cash.
Great idea also to protect the buyer. The ability to get 100% or more mortgage is ridiculous.
Who Knot? will his own business with his salary do have for each other. but the average American who does some shopping in the market (he does not even know what the market) is with his salary and the current rents not 40,000 sparen.dus he must first go do a little research into the feasibility of his ideas .
Why not again as if 30 back second income can only 5 years count So pay off the head of your mortgage And only you do it you can not High mortgage nemem Then you have savings and it is now better to your savings over what you have to stop in the house
What a mania for organization, a meddling. Later Klaas Knot go further define our bedrooms should be 10% smaller, and that we may spend a maximum of 103% of our salary to smartphones and burgers. Of course, we Dutch were not behaving.
A german can save because the housing and home ownership there are relatively cheaper than in the Netherlands! I do however accept that you must have some money. come on! nearly 3 tons for one row dump!
Sarcastic: Let us pretend trees still grow to the sky and just the maximum loan. If it goes wrong then the taxpayer has to do again …… And let’s also assume that especially the mortgage interest rate will not rise and that people will not will get into trouble, especially when they lose their jobs .
Why a German can be save for a house and a Dutchman not? Good plan
With roughly 42 years of experience in the mortgage industry I can say that the board Knot completely miss late. Of course not crediting, but the thing so far is shown in black.
So Dutch: officials who talk in their mania for organization. Even more restrictions! Exaggerating these “guardians” because “we” in their eyes are gullible and therefore need to be helped or saved? Whether it is assertiveness? I pay the civil service not to be seated right through them!
Plan Knot fine. Having learned nothing from these other organizations are under water, especially if interest rates go up is even crazier. Personally, I think 80% get more close, more preferably less.
What a stupid argument. First, (unnecessarily heavy) measures making billions in property values is disrupted. Then measures should be taken because there are billions destroyed. And then that has of course !! Spiral downward. And something like that is inserted by an expert advisory committee !! Well you get that expert advice for which you paid
The organizations (NVB, VEH, NVM, VBO, even CPB) will be the worst, people are at great risk when it unprecedented borrowing capabilities are maintained ( in relation to the rest of the EU) are the earning of EN on all fronts, not too good for state. In the USA, you can still send the keys to your house submerged at the bank (non-recourse loans). In NL, you are chased to death by the banking industry. They come to your house for a pittance!
Excellent plan. This allows for standardization of housing prices in the long term. Combined with mandatory repayment is this THE way to avert another crisis. In addition, the government should come up with a master plan to empty offices and retail to build housing. Good for the economy and so is finally affordable housing in the Netherlands. So we keep left to spend!
then there are no more houses sold all and this is only for the rich … I will buy more house though not at this time guarantee your job is no more and it will only get worse stay where you are because the future looks really bleak though they want us to think ..
indeed a stupid and thoughtless plan, the whole economy is going perish in the Netherlands and this plan would go ahead.