A divorce, conversion or interest rate reduction of the mortgage: from June 2021 onwards, homeowners must have a new valuation of their home made by an appraiser each time the mortgage is changed. The new European regulation can cost people hundreds of euros extra, writes the Financieele Dagblad. Now, an online – and cheaper – valuation report, a WOZ declaration from the municipality or no valuation at all will usually suffice.
The amendment is the result of a new directive of the European Banking Supervisor (EBA) that will come into force next year. In doing so, the EBA wants to limit the risks for banks. Accepting a mortgage without valuation can result in the mortgage becoming higher than the value of the house.
The Dutch Central Bank (DNB) may deviate from the European directive, but does not seem to intend to do so for the time being. According to DNB, it is likely that the EBA will offer possibilities for the implementation of the directive without too many extra costs: “We have some confidence that a solution can be found that makes smart use of models and algorithms to keep costs low, without blindly relying on them”, says a spokesperson.
Association Eigen Huis (VEH) calls the appraisal obligation a “bad idea”, which moreover “unnecessarily drives homeowners to costs”. “This is disproportionate. Every time the mortgage changes, however small, you will have to have your house appraised again by an appraiser. Even if you switch to a lower interest rate, as many people do now”, said a spokesman in the CCeit Radio 1 News.
If a valuation is not in the file from June next year, sanctions may follow. The VEH calls this exaggerated. “In the Netherlands we have the highest mortgages in Europe, but also the lowest failure rate. Few people are unable to pay their mortgage. So what problem do you solve with this?”