Finance

Look back: What opportunities does the end of the interest deduction offer?

The mortgage market is not standing still. There’s a lot going on. For this reason, an online seminar was organised, which focused on the current mortgage market and the future of mortgages. What’s about to happen? What are the most important developments in the provision of a mortgage? What makes it a positive thing that the interest deduction will be abandoned? And above all, what opportunities does this offer consumers, advisors and lenders?

Watch the compilation of the online seminar

‘What opportunities does the end of interest deduction offer consumers, advisers and lenders?’ On Tuesday 14 December, RTL Z and Topicus organized a live online seminar. Viewers could ask their questions about this topic live via chat to the two experts, Georgette Lageman (Manager Expertise Center Living at BLG) and Jeroen Dekkers (Businessline Manager Mortgages at Topicus), who were present in the studio.

A look back tip for anyone interested in mortgages and in particular lenders, advisors and intermediaries.

Accelerate mortgage application

One of the guests of the online seminar was Jeroen Dekkers, Businessline Manager Mortgages at Topicus. He is involved in the development of smart IT solutions to make the processing of mortgage applications faster and more efficient. Banks and money lenders are the direct buyers here, but convenience for the end user (the consumer) comes first. Dekkers: “We are constantly optimizing, shortening and speeding up the process, so that we enable our customers (the lenders) to provide consumers with certainty about buying the house more quickly.”

New ways of providing data

That there is a demand for this is apparent from an example that Dekkers cites of an application procedure that lasted no less than nine months and for which the buyers had to supply 117 documents. According to Dekkers, this can mainly be accelerated by looking at new ways of providing data. Dekkers: “When applying for a mortgage, we still work with submitting pay slips and bank statements, which are then typed into the providers’ systems. It would save a lot of time and work if mortgage lenders and advisers could retrieve this data directly from the source. At the UWV, for example, or possibly later also pay slip processors.” Of course always and only with the consent of the consumer.

To pay or not to pay

Dekkers also expects a change in behavior in terms of repayments and how consumers view this. Dekkers: “Over the past decade in the Netherlands, we have gone from paying off nothing to paying off everything. And purely for tax reasons: to be able to get interest deduction. But with the current low interest rates, that is no longer the most interesting solution for everyone.” According to Dekkers, whether repaying is wise or not also depends on the stage of life you are in: “As young parents with school-aged or studying children, you might be better off using your money for the household instead of setting it in bricks.” These kinds of factors are less considered when providing mortgages. It is much more about the process of arriving at a mortgage. According to Dekkers, it is too much of a snapshot that only looks at current financial data and focuses too little on individual payment capacity or payment behaviour.

The fact that the mortgage interest deduction will (probably) be abolished is therefore good news as far as Dekkers is concerned. How, when and in what way he ideally envisions this, he explains in the online seminar.

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