People looking to buy a home may well be able to borrow more next year, family spending institute Nibud has said.

The institute is charged with advising the housing ministry on maximum mortgages and makes recommendations every year.

With wages rising by an average of 4.3% “a household with an annual income now of €70,000 and an average pay rise ahead will be able to borrow roughly an extra €7,000,” director Arjan Vliegenthart said. “Without the pay rise, this household would be able to borrow €6,000 less.”

Homebuyers are currently able to borrow up to 100% of the official value of the property with a number of additions, depending on their income and mortgage interest rates.

For example, if they buy a house with a high energy label, they can borrow more because their energy bills will be lower. People buying an A++++ house can add €50,000 to their basic mortgage.

People with a low energy label can borrow an extra €20,000 to pay for energy saving measures.

Nibud is recommending several minor changes. From next year, the actual outstanding student loan rather the original loan will be weighted in mortgage requests, Nibud said.

The additional borrowing for single people will also rise from €16,000 to €17,000. The aim is to help offset the extra buying power that couples have, given that both their salaries count fully when calculating the maximum mortgage.

Depending on all these factors, people are borrowing between 2.6 and 5.6 times their salary, Nibud said.

The Nibud standard aims to protect home buyers from borrowing more than they can reasonably afford. “If people don’t have enough money over for other necessary expenditure they risk getting into financial trouble,” Vliegenthart said.