Parents help starters with financing a child's home

One of the major advantages of the Dutch tax system remains that mortgage interest is deductible from your income for tax purposes. The government therefore contributes a portion to your home. This is also possible with a mortgage granted to you by, for example, your parent(s). In that case, both parties must comply with the rules.

For example, the mortgage interest must be business-like, the repayment agreements must be clear, and a notary must always be involved in a mortgage. So, pay close attention when drafting the agreement. Always include a clause stipulating that the loan terms can still be adjusted if they are not approved by the tax authorities. To qualify for a tax deduction, the mortgagor must also report this to the tax authorities in a timely manner!

If you have a very generous mortgager, you can also benefit from gift tax exemptions. This allows the mortgager to gift a portion of the interest each year, for example. Note that paying the mortgage interest and paying the gift are two separate matters. Therefore, it's not possible to waive part of the interest. The tax authorities are very strict about ensuring that the interest is actually paid.

The cost of a building inspection (up to 250 m²) is only €489 including VAT. We'll conduct a comprehensive building inspection and you'll receive a building report. Do you have any questions? We're happy to help and can schedule an appointment with an expert inspector right away if you wish!