Do you study and do you use the loan system? Then that can affect your mortgage application and the house that you want to buy later. The Netherlands Authority for the Financial Markets believes that this loan should be registered with the Credit Registration Office (BKR), reports NOS.
Every year, the financial supervisor sends a legislative letter in which recommendations are made. This letter is about themes that the organization thinks should be legally amended. This can therefore have consequences for your mortgage.
Concealment when applying for a mortgage
According to the AFM, households are not always financially resilient. According to the regulator, they regularly run into problems because they can no longer pay the mortgage. The solution, according to the AFM, is that student debt is passed on to the mortgage lender. Too often people would get too high a mortgage because student debt is not always included.
People who run into problems have high costs because the bank is not always aware of the student debt. About 15 percent of starters do not state this amount when applying for a mortgage.
Since the loan system was introduced, debts have risen considerably and it is difficult to study at a college or university for four years without borrowing money. Previously, students were given a basic grant that did not have to be reimbursed when the diploma was obtained. In addition, students could borrow money from the government to pay for their studies.
Student debt in BKR register
As far as the AFM is concerned, the student debt is included in the BKR register. This allows mortgage lenders to see exactly how much the applicant still has outstanding with the government. Incidentally, it is not yet certain, the AFM calls the BKR the most logical choice because they register all debts.
In recent years, the rules for obtaining a mortgage have already been tightened up considerably, partly due to the recession that started in 2008. It is therefore not always easy to get a mortgage with which you can actually buy a house. The market is also tight, which is partly causing house prices to rise.
In violation of agreements
There is already a lot of resistance to the advice. The national student organization ISO, among others, is not happy with the proposal. “BKR registration takes students even further from buying a starter home,” says ISO chairman Dahran Çoban. “The loan system and the situation on the housing market in themselves are cause for concern for students.” According to the ISO, registration of student debts with the BKR – as a result of which it affects your mortgage application – is in conflict with agreements made when the loan system was introduced.
Minister is against
Outgoing minister of education Ingrid van Engelshoven has now responded to the plan and says she sees nothing in it. “I will repeat it again: the cabinet believes it is important that borrowing remains accessible to every student, so that everyone can continue to study. A BKR registration of the student debt can have a deterrent effect, so we will not do it ”, says Van Engelshoven on Twitter.
I will repeat it again: the cabinet believes it is important that borrowing remains accessible to every student, so that everyone can continue to study. A BKR registration of the student debt can have a deterrent effect, so we will not do it. https://t.co/txt3hwmpza
– Ingrid van Engelshoven (@ivanengelshoven) April 22, 2021
Reactions on social media are mixed. One person thinks it is only right that people can no longer conceal their student debt, the other thinks that this makes it even more difficult for starters.
“The student debt does not count towards your mortgage”
“The money we receive from the student debt is invested in education”
“Okay your debt counts towards your mortgage, but you have to declare that yourself”
“Oh yes we have not invested enough in education”#Study debt https://t.co/65bye6NSt0
– Elize (@DressageLife_) April 22, 2021
Logical, I thought the chance that with my high student debt would one day be able to buy a house also just a little too big. It is great that they kill that secret dream for a while, it gives clarity again. #study debt #residential market #Not my fault https://t.co/aZbsJ8wEXp
– Mylène Tabernal (@MyleneTabernal) April 22, 2021
Advice: make higher education free of charge so that it is freely accessible to EVERYONE. Don’t have to saddle your young adults with a sky-high one, either #study debt and you don’t have to register anything anymore.#think
– Arzu 🌿 (@pantarheio) April 22, 2021
I have no active memory of building one #study debt
– Nico Welmer (@nicowelmer) April 22, 2021
I can see a lot of resentment at the suggestion of a #study debt At the #BKR to register, but why? You are already obliged to report that debt if you receive a #mortgage want to apply, so you are now angry that you can no longer lie about it?
– Erik Booij (@ErikBooij) April 22, 2021
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