‘Duurhuur’ pilot offers more opportunities for tenants with high rents
Under the name ‘Duurhuur’, the National Mortgage Guarantee (NHG) is working together with AEGON, ING, Florius, Vereniging Eigen Huis, and BLG Wonen on a pilot project. The goal is to give tenants who easily manage high monthly rents a better chance of buying a home. Tailor-made mortgages are intended to provide a solution.
High rents hold back buying ambitions
The term ‘duurhuurders’ is used for households that pay high rents every month in the private rental sector. Nearly two thirds of the 574,000 tenants in this category in the Netherlands spend more than 33 percent of their net income on rent. Even though these tenants have proven over time that they can manage their housing costs without difficulty, they usually do not qualify for a mortgage based on their income if they want to buy a home. Sometimes they even pay more in rent than they would be allowed to pay in mortgage costs. With this pilot, NHG wants to give this group of tenants more opportunities to buy a home.
Custom mortgages as individual financing
NHG and its partner lenders want to give tenants with high rent payments access to the housing market through customized financing. Unlike the standard approach, mortgage applications from this group are assessed individually instead of through the regular mortgage test. Lenders are allowed to make exceptions to the usual borrowing standards. This creates more flexibility to offer a mortgage with NHG.
Even with this flexible support, tenants still have to meet a comprehensive set of requirements to qualify for a mortgage. They must show that, for more than three years, they have managed to pay high rent without borrowing money or using their savings. A stable income, a reliable payment history, and future housing costs are also taken into account when determining the maximum mortgage payment. The advantage of this custom approach is that a wider group of potential home buyers, including people with flexible contracts or self-employed professionals, can benefit from the pilot. However, each lender will still decide whether to approve a mortgage for each applicant.
A new solution for tenants with high rents
Tenants in this situation can already contact financial advisers at the participating lenders. For Florius, this is possible starting at the end of March. It is also possible to consult an independent mortgage adviser such as A&H Finance for more information. The adviser will first assess whether you qualify for the pilot before your application is taken further. If there is enough room to offer the mortgage, NHG will provide a guarantee for this individual, custom solution.
