Mortgage Interest Deduction

Government’s vision for mortgage interest deduction postponed

Minister of Finance Weekers has announced to the Upper Chamber that the government’s vision for the future of the mortgage interest deduction will come after March 15, 2012. In any case, the government’s response to the motion put forward by Kuiper will come in the second quarter of 2012.

Starter homes
The response of the government will also pay attention to existing studies in the housing field as well as the position of current homeowners, access to owning a home for starters, the limits within which there is an acceptable debt burden and the demands on the general funds.

Private property debt
In the response Weekers wants attention brought to the deduction for little or no home ownership debt (Hillen-deduction).
Weekers also told the Upper Chamber that the memorandum over the tax liability of state owned entities which was promised before April 1, 2012, will probably be delivered to the Chamber at the end of April 2012.

Role of housing associations
The development of the Groot/Omtzigt motion (social role of housing corporations and the corresponding tax treatment) has been delayed and is expected in the second quarter of 2012.

5% rent increase
As of July 1, 2012 Weekers will pit himself against tenants with a (joint) gross income above € 43,000 by imposing a rent increase of up to 5% on top of the 2.3% permitted. Thus, the rent increase could total 7.3%. The bill for this has yet to be approved by the Upper and Lower Chambers.