Political parties have varied plans to phase out the mortgage interest deduction, which allows homeowners to deduct part of their mortgage interest from their taxable income, thereby reducing their taxes. Some propose eliminating it in 8–12 years, others over 15 years, while De Nederlandsche Bank suggests a 20-year phase-out. NOS
Mortgage advice firm Van Bruggen ran calculations for NOS based on an annuity mortgage of €495,000 (the average home price) at 4% interest (the current average ten-year fixed rate without NHG). NOS
For the fastest scenario—phasing out over eight years—the additional net amount homeowners must pay peaks at over €500 per month around year eight. Over time, as more principal is repaid and less interest is due, that gap narrows. NOS
In the 20-year scenario, the maximum extra payment is just over €300 per month, and that maximum is only reached around year seventeen. NOS
The real effect depends heavily on other policy decisions by a future government, particularly how the roughly €11.2 billion in annual tax revenue currently lost to mortgage interest deduction is redirected—such as via cuts to income taxes. NOS
Oscar Noorlag from Van Bruggen notes that the impact is greatest for first-time buyers, who typically have higher interest payments relative to principal. Those with locked-in rates of 1–2% will be affected less than recent buyers with rates between 3.5–4%. NOS
Income growth over time will also help cushion the increase, and homeowners currently spend around 17% of their income on housing costs—significantly less than renters (30% in the private sector, 25% in social housing). NOS
Critics of the mortgage interest deduction—including DNB, IMF, and OECD—argue it distorts the housing market, inflates prices, encourages excessive borrowing, and unfairly benefits homeowners over non-owners. Gradual phase-out is preferred to avoid market shocks. NOS
The National Mortgage Guarantee (NHG) also supports a gradual phase-out over 20 years, stating that a carefully designed plan can support affordability, market stability, and financial health, and that the savings can be returned to citizens in other ways. NOS
Conclusion: The pace of change matters—faster phase-outs increase monthly costs more sharply, while slower approaches could spread impact over time and allow policy to adjust. Homeowners, especially newer buyers, should watch both interest trends and future tax decisions.
📌 Source: NOS – Hypotheekrenteaftrek afbouwen, hoe pakt dat uit voor je maandbedrag? NOS
