The maximum amount people hoping for a mortgage can borrow from their bank will be cut to 7% from January 1, broadcaster Nos said on Wednesday.

The family spending institute Nibud has drawn up new ways of calculating domestic spending needs, which have led to the lower limits. The change means a family with gross income of €50,000 a year will be able to borrow a maximum €228,000 from next year, compared with €244,000 in 2014.

Nibud used to calculate maximum loans using spending power and mortgage interest rates but has revised the system to include potential spending such as higher healthcare costs and children.

The aim is to prevent householders from taking out mortgages which are too high for them to cope with and which leave them without any room for emergencies, the organisation says.

Mortgage providers are required to accept the new limits when assessing mortgage requests.