By the end of 2028, around 950,000 Dutch households will pay more on their mortgages, with typical monthly mortgage bills rising by €150 on average.
This finding comes from a report by the De Nederlandsche Bank (DNB), based on mortgage data from banks. Their verdict? Well, while most households can handle the price hike, a growing number of households “may come under financial pressure”.
If you’ve got an existing Dutch mortgage, you’ll want to read on.
Is your mortgage one of them?
Most Dutch homeowners lock in their mortgage rate for a set number of years, known as the rentevaste periode (fixed interest period). When that period ends, their rate is reset — which, in today’s economy, is almost always at a higher rate than before.
You’re likely on the receiving end of a price hike if your mortgage is through a bank and:
- has a variable interest rate, or
- has a fixed interest period that ends before the end of 2028.
Not sure when your rentevaste periode ends? Your mortgage documents or provider can tell you.
Note: Given that DNB’s analysis only covered bank mortgages, your mortgage could behave differently if you took a loan from an insurer or pension provider.
Mortgages well into 2033 could also be affected
Mortgage rates were historically low between 2019 and 2022, resulting in households opting for fixed-rate periods of over ten years.
However, even households with longer fixed interest periods aren’t necessarily in the clear.
According to DNB’s analysis, 27% of mortgage debt is “due to reset between 2029 and 2033, and 48% after 2033”. If interest rates are higher at this time than during your fixed-rate period, you’ll likely face a similar price hike.
Some households could see an increase of €300 per month
While a €150 monthly price hike is what the typical household can expect to receive by the end of 2028, it’s not the full picture.
As DNB writes, “a quarter of these households face an increase of less than €50, while another quarter face an increase of more than €300 a month”.
The good news is, mortgage interest tax relief may ease the strain on your net monthly costs. These haven’t been factored into DNB’s calculations, but do apply to taxable income in Box 1.
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