Additional credit regulation

When selling your home and buying a new one, you could have to face the additional credit regulation. Because of this, you might not be allowed to deduct all (mortgage) interest if you buy a new home. 

What does this regulation consist of?

If you sell your home and the net gain (selling price minus the selling costs) is higher than the owner-occupied home debt (the sum from which you are allowed to deduct interest), you will have a surplus value, the so-called 'homeownership reserve' (the surplus value of your old home and possible earlier obtained surplus value).

Are you taking out a mortgage for your new home? Then you will be allowed to deduct interest from the maximum of the purchase price of the new home, plus possible refurbishing costs, minus the homeownership reserve.

The regulation also applies if you decide not to sell the home, but to permanently let it. An exception to this rule is possible in case of letting on a temporary basis, if you have not been able to sell the house. 

If you sell your house and are not buying a new home on the short term, the surplus will be stored in a homeownership reserve for three years. If you take out a new mortgage within this term, this surplus value will still be deducted from the maximally deductible mortgage. After three years, the homeownership reserve will elapse and you can take out a higher maximally deductible mortgage.