Crazy New Mortgage Laws

Today is the last day of our holiday. I can now tackle red slopes and can make paralel turns when skiing!

Anyways, I read some really disturbing news about new mortgage laws in our beautiful country, The Netherlands. By law one could not borrow more money than a 30-year mortgage loan would allow. The sodding crazies that we elected have now thought of a brilliant new way to stimulate our current housing crisis…they will now allow people to take a 35-year mortgage!!! Guess who initiated the bill…that’s right…THE BANKS! People will never ever own their own homes this way…what a sad story this is indeed. Another added bonus is that the housing prices will remain sky-high which is another benefit for the banks, isn’t it? Greedy bastards.

I am just appalled by this decision. What do you think. Have the Dutch gone mad? What are things like in your country?

Love,

Mrs EconoWiser

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5 thoughts on “Crazy New Mortgage Laws

  1. spaarolifantje

    I don’t think five more years will make that big a difference on how much one can borrow.

    And maybe sometimes people should be allowed to dig their own graves if they want to… ? Not completely sure about that by the way… Should they? Orshould they be protected from themselves?

    Reply
    1. econowiser Post author

      I think the amount you can borrow will be about one sixth to one seventh more than now…so that’s a lot. I do think people need to be protected. There are people who really cannot understand the financial consequences of the choices they make.

      Reply
      1. spaarolifantje

        My calculation comes to about 1/10th more, because a higher debt of course also means higher interest costs. So for example people would qualify for a 220k mortgage instead of a 203k one, and it would cost them about 60k more over the course of the mortgage. (I calculated w 4% interest and 1000 euros mortgage payment per month). 30x12k is 360k for the 203k morgage, 35x12k is 420k for the 220k mortgage.

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