“The mortgage interest tax deduction will be phased out”
At Viisi, we like to be clear about what’s involved in taking out a mortgage. In this section, we address common misunderstandings and also highlight some unique facts. This way, you’ll know what to expect and can distinguish facts from fiction.
“The mortgage interest tax deduction will be phased out”
Fact or fiction? Knowing your monthly mortgage payments after taxes is essential if you plan to buy a home. Thanks to the mortgage interest deduction, part of the interest you pay can be deducted from your taxable income. But did you know this deduction is being phased out? That’s not a myth. It’s a FACT.
Here’s why:
- The mortgage interest deduction lasts for a maximum of 30 years.
- During these 30 years, the deduction gradually decreases if you repay your mortgage on an annuity or linear basis.
- After 30 years, the deduction disappears entirely—this rule has been in place since 2001.
- Since 2013, new mortgages must include repayment, which causes the deduction to decline faster every year.
So yes, the mortgage interest deduction drops throughout the duration of the mortgage. But here’s a spoiler: the actual financial impact is often smaller than you think.
A long history
The mortgage interest deduction has been part of Dutch tax law since 1914. It became a popular policy tool in the 1990s to stimulate home ownership. But it also costs the government billions in lost tax revenue—one reason why the deduction has been gradually scaled back since 2001. What will happen next? That remains uncertain.
The example below shows the impact of the declining deduction on your monthly housing costs. The first column reflects the year your mortgage begins.
Example: decreasing mortgage interest deduction
- Home value and mortgage: €400,000
- Gross annual income: €80,000
- Mortgage interest: 3% for 30 years
- Fixed gross monthly payment: €1,686
| Year mortgage starts | % deductible interest | Monthly tax benefit year 1 | Monthly tax benefit year 10 | Monthly tax benefit year 20 |
|---|---|---|---|---|
| 2012 | 52% | € 454 | € 241 | € 102 |
| 2015 | 51% | € 444 | € 245 | € 102 |
| 2020 | 46% | € 398 | € 245 | € 102 |
| 2023 | 36,93% | € 326 | € 245 | € 102 |
| 2025 | 37,47% | € 352 | € 245 | € 102 |
In all cases, the deduction disappears entirely in the final years. Want to run your numbers? Use Berekenhet.nl.
Tip: Did you buy a home this year? In addition to interest, you may deduct other purchase-related costs on your tax return. Viisi offers a helpful checklist.
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What will you pay in the future?
An example is helpful, but what does the deduction phase-out mean for you? Your Viisi advisor can help calculate your specific mortgage costs. Some key points:
1. Your deduction will decrease over time
Your mortgage must be repaid on an annuity or linear schedule within 30 years to qualify for the deduction. With an annuity mortgage, your outstanding loan is still relatively high in the early years, so your tax deduction is bigger. Over time, as you pay down your loan, your deduction shrinks (assuming the interest rate stays the same).
2. You’ll deal with the notional rental value (eigenwoningforfait)
The mortgage interest deduction is tied to the notional rental value, a notional income you must add to your taxable income. In 2025, it’s 0.35% of your home’s WOZ value for most homes. For homes worth more than €1,330,000, the percentage is higher.
3. High earners benefit less
Previously, the deduction was based on your income tax bracket. Since 2024, it’s capped at the lowest income tax bracket rate, so high earners (above € 76,817 in 2025) benefit less than before. Lower-income homeowners already had less deduction, so their impact is smaller.
Note: Two different deduction rates apply again in 2025. In short, the mortgage interest deduction system in the Netherlands remains complex.
4. The deduction ends after 30 years
Since 2001, mortgage interest has only been deductible for 30 years. Once that period ends, your net housing costs rise. For many, this is still far in the future, but if you took out a mortgage in 2001, your deduction will end in 2031.
Tip: Filing taxes with a fiscal partner? You can divide the deduction between you in any ratio (100/0, 50/50, 30/70, etc.). In the program for filing your taxes with the Belastingdienst, you can play around with this division at the end to see what works best for you. In many cases (in 2025), it’s best to allocate the deduction to the partner with the lowest income.
What not to do: Don’t rely blindly on net costs. Don’t base your housing budget only on your net payments. History shows that tax benefits can shrink or vanish completely. Always understand your gross mortgage costs. Want to know more? Watch our video on how mortgage costs are calculated.
What to do: Adjust your provisional refund. After filing your taxes, you usually receive your mortgage interest refund as a lump sum. But you can change this to monthly payments by applying for a provisional refund (voorlopige teruggaaf) from the Dutch tax authority. Already receiving monthly refunds? Make sure the amounts still match your current situation to avoid surprises later.
Compare Viisi
| Mortgage advisor | Viisi NV | De Hypotheker | Hypotheekshop | Rabobank | ABN-AMRO | ING |
|---|---|---|---|---|---|---|
| Trustpilot rating | 4.9 (1361) | 2.5 (51) | 3.4 (12) | 1.4 (1704) | 1.4 (1718) | 1.4 (2876) |
| Number of lenders available | ||||||
| Advisor has a university degree | ||||||
| Periodic costs | € 0 | € soms | € 0 | € 50 | € 0 | € 0 |
| Life insurance | € 250-500 | |||||
| Mortgage protection insurance | € 250-500 | |||||
| Other insurances | ||||||
| Fee for first house | € 3,095 | € 2,495-3,495 | € 3,300 | € 2,300 | € 1,725 | € 2,000 |
Independent number of lenders
How many different mortgage providers are compared? At a bank, only mortgages from its own brand are offered. An independent advisor works with multiple lenders, allowing you to get better terms and/or a lower interest rate. In the Netherlands, there are approximately 40 lenders, so comparing almost always pays off!
Trustpilot
The rating is the average score from customer reviews online. These reviews are verified for authenticity by Trustpilot. The maximum score is 5.0, and the minimum score is 1.0.
Source Trustpilot: 3 december 2024
Periodic costs
Once the mortgage and insurance policies are arranged, do you need to continue paying periodically? A indicates there is no mandatory ongoing payment.
Mortgage protection insurance
A mortgage consultation should also cover the risks of death, disability, unemployment, and retirement. You can then choose whether or not to take out insurance to mitigate these risks. Taking out insurance may lead to higher fees from the bank or advisor. If a is shown, the advisory fee always includes this advice and arranging the insurances as well.
Life insurance
A mortgage consultation should also cover the risks of death, disability, unemployment, and retirement. You can then choose whether or not to take out insurance to mitigate these risks. Taking out insurance may lead to higher fees from the bank or advisor. If a is shown, the advisory fee always includes this advice and arranging the insurances as well.
Property insurance comparison
When moving, you often need other insurance, such as building- and contents insurance. Is advice on this included in the service, and are there multiple insurance products to choose from? If so, a will be shown in the table. Banks do offer insurance but only from one insurer.
University-educated advisor
A is included only if all mortgage advisors at the company have at least an academic degree (in addition to the required WFT diplomas).
Mortgage advisors and sales agents at banks are legally required to obtain diplomas and keep their knowledge up to date on a minimum level (WFT certification). In addition, an advisor can be an Erkend Financieel Adviseur (EFA) or even a Certified Financial Planner (CFP/FFP). Depending on experience and ambition, an advisor will reach a certain level of certifications.
Fee for advice + arranging the mortgage
If a standard fee is known, this amount is included in the table. If the fee varies by location, a range is shown. The fee you pay for mortgage advice and mediation is tax-deductible.
FAQ: Mortgage interest deduction decreases in the Netherlands
Is the mortgage interest deduction really decreasing in the Netherlands?
Yes. The mortgage interest deduction is being phased out gradually. Since 2013, new mortgages must be repaid on an annuity or linear basis, which reduces the deductible interest over time. After 30 years, the deduction ends completely.
How long can I deduct mortgage interest in the Netherlands?
You can deduct mortgage interest for a maximum of 30 years. This rule has been in place since 2001. After this period, your interest is no longer tax-deductible, and your net monthly housing costs may increase.
Why is the deduction decreasing over time?
With annuity and linear mortgages, your loan balance decreases as you repay the principal. As a result, the amount of interest—and therefore your deduction—shrinks each year, even if the interest rate stays the same.
What is the impact of the notional rental value (eigenwoningforfait)?
In the Netherlands, homeowners must add a notional rental value (based on the WOZ value of the home) to their taxable income. This reduces the net benefit of the mortgage interest deduction. In []YEAR, the rate is 0.35% for most homes, and higher for properties worth over € 1,330,000.
Do high earners benefit less from the deduction?
Yes. Since 2024, the deduction has been limited to the lowest income tax bracket rate. This means homeowners with an income above € 76,817 (2025) receive a lower benefit. Lower-income homeowners are less affected, as they already deduct at the lower rate.
What happens when the 30-year deduction period ends?
When your 30-year period expires, you can no longer deduct mortgage interest, and your net monthly payments will rise. This is still far off for many people, but if you took out a mortgage in 2001, your deduction will end in 2031.
Can I optimize the deduction with my fiscal partner?
Yes. If you and your partner are fiscal partners, you can divide the deduction in any ratio (e.g., 100/0, 50/50, 30/70). The online program for filing your taxes will calculate the refund for you if you change the ratio., Generally, the refund is optimized by allocating more/ all of the deduction to the partner with the lowest income.
Should I focus only on net mortgage costs?
No. Don’t rely only on net costs because tax rules can change. Understanding your gross mortgage costs is essential to avoid financial surprises in the future. Viisi recommends budgeting based on gross payments for long-term stability.
How can I adjust my monthly tax refund?
You can change your mortgage interest refund from an annual lump sum to monthly payments by requesting a provisional refund (voorlopige teruggaaf) from the Dutch tax authority. If you’re already receiving monthly fees, check yearly to ensure the amount is accurate.
Where can I calculate the impact of the deduction decrease?
You can use tools like Berekenhet.nl to run your calculations or speak with a Viisi mortgage advisor to understand the impact on your monthly payments.