Two-income households can get more mortgages next year. This is clear from the changed mortgage standards for 2020 that have now been announced as a concept.

More mortgage for two-income households in 2020

Double-income households can receive more mortgages next year based on their joint income. In 2020, the highest income may be increased by 80% of the lowest income when determining the test income. Now this is 70%.

This test income is used to determine your financing burden percentage, or the part of your income that you can use for the mortgage burden. It is therefore not the case that the maximum mortgage for two-income households increases by 10%.

Impact on the maximum mortgage

To give you an idea of the impact of a higher test income, we calculate the maximum mortgage for two-income households based on current mortgage standards. The new financing burden percentages are only announced after Prince’s Day.

Example calculation of maximum mortgage for two-income households

Income € 36,000 and € 36,000 (2x average)

Mortgage interest rate: 1.6% (10 years fixed)

State pension age not yet reached

If the second income counts for 70% to determine the test income, the maximum mortgage is € 368,636. If the second income counts for 80% to determine the test income, the maximum mortgage is € 377,209.

With the highest test income, two-income households could therefore receive € 8,573 more in mortgage. Again with this year’s mortgage standards. In addition, the smaller the incomes, the lower the impact.

Concept of mortgage standards 2020

The broadening of the funding scope for dual-income households is 1 of the changes for 2020 from the ‘draft change scheme for mortgage credit’. In it, the Ministry of Finance currently submits the amended mortgage standards to the market for consultation.

In this concept, the Minister of Finance also writes that for incomes up to € 30,000, the financing burden percentages will rise slightly next year. So they can borrow a little more next year. For incomes above € 30,000, the financing burden percentages actually fall.

The exact impact of this intention will only be known after Good Finance, when Nibud announces the new financing burden tables. Then we also know what dual-income households can borrow more in 2020.