Background & Purpose

High thresholds on the housing market have made it difficult for many to purchase their own home. The government proposed these changes to increase accessibility.

The Decision

The parliament approved new laws that raise the mortgage cap to 90 percent and remove the extra amortization requirement for those with high debt relative to their income.

Does this affect you?

  • First-time homebuyers: They can now purchase a home with a smaller down payment, as the mortgage cap is raised to 90 percent.
  • Existing homeowners: They no longer need to pay extra amortization based on their income-to-debt ratio, potentially increasing their monthly disposable income.

In Practice

  • You can now borrow up to 90 percent of a home's value instead of the previous 85 percent.
  • The requirement to pay extra amortization if your loan exceeds 4.5 times your annual income is removed.
  • The standard amortization requirement based on your loan-to-value ratio remains in place.
  • Additional loans for renovations are now limited to 80 percent of the home's value.
  • The rules are now established through a new law rather than through the Financial Supervisory Authority's internal regulations.