Dutch housing market
The Netherlands has one of the strongest economies in the world and benefits from important fundamentals such as a strong labour market, a solid social security system (including unemployment insurance) and political stability. Supported by these factors, the Dutch housing market is a dynamic and well-functioning market with a housing stock of more than 8 million homes.
The Dutch government encourages homeownership through its tax system, allowing mortgage interest payments on owner-occupied properties to be deducted from the borrower's taxable income ('hypotheekrenteaftrek'). In order to qualify for this tax deduction, residential mortgages must be fully repaid over a 30 year period using an annuity repayment period.
Additionally, the Dutch government promotes homeownership through a national mortgage guarantee scheme, referred to as Nationale Hypotheek Garantie ('NHG'). NHG provides a safety net for both borrowers and mortgage lenders in casea borrower can no longer pay their mortgage. Residential mortgages are eligible for NHG up to a certain house value (€405,000 in 2023).