DNB president continues to push for abolition of mortgage interest deduction
De Nederlandsche Bank President Sleijpen has reiterated his call for the complete abolition of the mortgage interest deduction in the Netherlands, arguing it no longer serves an economic purpose. He claims the annual 10 billion euro policy disproportionately benefits owners of expensive homes and should have been phased out when interest rates were lower.
De Nederlandsche Bank President Sleijpen continues to advocate for the total elimination of the mortgage interest deduction in the Netherlands. During a recent discussion at the University of Amsterdam, he stated that the policy no longer serves an economic purpose and unfairly favors specific groups of homeowners over others. He noted that the fiscal measure currently costs more than 10 billion euros annually, with owners of expensive homes benefiting significantly more than those with affordable properties.
Sleijpen expressed regret that the deduction was not phased out years ago when interest rates were at record lows, as the impact on households would have been minimal at that time. While recent data shows a cooling in the housing market, Sleijpen remains firm in his position regardless of future price fluctuations. Although several political parties proposed ending the deduction during previous elections, the current cabinet has yet to finalize any concrete plans to implement such a change.
Based on reporting by nu. Translated and condensed by LocalHeadlines.
