First-time buyers and people taking out a new mortgage will only be able to deduct the interest from tax if they are also paying off their debt, under new rules the caretaker government plans to introduce from January next year.

The Volkskrant reports on Wednesday that outgoing tax minister Frans Weekers has drawn up a tough plan to reform the mortgage market. The measure will be included in the September 18 budget plans which will be presented by the caretaker government one week after the general election.
The measure was agreed between the five parties who drew up a package of emergency austerity measures in April, in order to meet eurozone deadlines, but Weekers has opted for a stricter interpretation, the Volkskrant says.
New government
However, there is no certainty this, or any measure contained in the September 18 budget, will come into force. Not only will it be up to the new intake of MPs to vote on them, but the new cabinet can also make changes.
The Volkskrant says banks are opposed to the new mortgage measures because most of their profitable mortgage policies will not qualify for the tax break.
Estate agents and home owners’ lobby group VEB are also against the changes which they say will further hit the housing market and saddle first-time buyers with massive repayments.
At the moment, home owners can deduct all the interest paid on their mortgage from tax for a 30-year period.
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