How consumer credit affects your maximum mortgage | Libero Financieel
Do you have a personal loan, a revolving credit line, a credit card limit, or a private lease car? These can all have a significant effect on the size of your maximum mortgage. Even a credit line you never use can limit your borrowing capacity. On this page we explain how lenders factor this in and what steps you can take before applying for a mortgage.
Calculate what your situation means for your maximum mortgage
What counts as consumer credit?
Consumer credit is a general term for loans you take out for personal spending, without a property serving as collateral. This includes:
- Personal loan: a fixed amount repaid in fixed instalments, for example for a renovation or a major purchase.
- Revolving credit: a credit limit you can draw on and repay flexibly.
- Credit card debt and overdraft: the approved limit counts, even if you don't use it in full.
- Private lease: the monthly lease obligation from your lease contract is counted as a financial commitment.
Personal loans, revolving credit lines, credit cards with a credit facility, and private lease contracts are usually registered with the BKR (the Dutch Credit Registration Bureau) and can affect your mortgage application.
How does consumer credit affect your maximum mortgage?
Consumer credit lowers your maximum mortgage, because lenders take your financial obligations into account. Your maximum mortgage is calculated based on your income and your monthly costs. For some types of credit, the actual monthly payment is used, while for others a fixed percentage of the credit limit is applied.
Example calculation. Some lenders calculate a notional monthly cost of 2% of the credit limit. With a limit of € 10,000, that means a monthly cost of € 200, even if you haven't drawn on it. That € 200 is deducted from your monthly spending capacity, which can quickly lower your maximum mortgage by tens of thousands of euros. For other types of credit, such as a personal loan, the lender looks at your actual contractual monthly payment instead.
Which types of credit weigh most heavily?
Personal loan
A fixed loan with fixed monthly instalments. Always registered with the BKR, and the associated monthly payment is included when determining your maximum mortgage.
Revolving credit and credit cards
The approved limit counts, even if you barely use it. Cancelling an unused credit line can already make a difference.
Private lease
Mortgage lenders usually calculate with the monthly lease obligation of your lease contract, not the total lease sum over the full term. That's how private lease affects your mortgage in practice.
Student debt
A student debt is not registered with the BKR , but lenders do take the monthly payment into account according to the current rules of DUO (the Dutch student finance authority).
How to prepare for a mortgage application
- Map out your credit obligations
Check via the BKR which loans, credit limits, and lease contracts are registered in your name. - Pay off a loan before your mortgage application
If you fully repay a consumer credit before applying for your mortgage, the monthly cost disappears and your maximum mortgage may increase. - Cancel unused credit lines
A revolving credit or credit card limit you don't use still counts as long as the credit facility remains active. Cancelling it can directly increase your borrowing capacity. - Wait for the BKR deregistration
After repayment, the deregistration with the BKR needs to be processed before the lender assesses your application. Keep this in mind when planning your timeline.
What if you have a BKR registration with arrears?
A regular, positive BKR registration mainly lowers your maximum mortgage. An arrears registration is different: some lenders automatically reject a mortgage application in that case, regardless of the reason or your current situation. Other lenders do look further, for example if the arrears have been resolved and you have a good explanation. Not sure whether your situation is workable? Discuss it with us early in the process, so we know which lenders are likely to accept your application.
Frequently asked questions about consumer credit and your mortgage
Does an unused credit card limit also count towards my mortgage?
Yes. Lenders calculate with the approved limit, not the amount you actually use. If you barely use your credit card, it can be worthwhile to lower the limit or cancel the card before applying for a mortgage.
Is it better to pay off my loan before applying for a mortgage?
In many cases, yes. Once you fully repay the credit, the monthly cost disappears from the calculation of your maximum mortgage. Keep in mind that the deregistration with the BKR needs to be processed before the lender assesses your application.
Does student debt also count as consumer credit?
Student debt is not registered with the BKR, but it does count when calculating your maximum mortgage. Lenders take the monthly payment of your student debt into account according to the current rules of DUO.
Can I use my mortgage to pay off consumer credit?
A mortgage is meant for purchasing, improving, or maintaining your home. Using an increased mortgage for, for example, a car or paying off consumer debts is discouraged and not accepted by every lender. Always discuss this with your adviser beforehand.
How much does a loan affect my mortgage?
That depends on the type of credit, the amount, and your income. Some lenders calculate with a fixed percentage of the credit limit, others with the actual monthly payment. A loan of € 10,000 can already lower your maximum mortgage by tens of thousands of euros. We're happy to work out the exact figures for you.
Can I get a mortgage with a BKR registration?
A regular, positive BKR registration usually doesn't stand in the way of a mortgage, but it does lower your maximum borrowing capacity. An arrears registration makes things harder: some lenders automatically reject the application, while others look at the bigger picture. We're happy to tell you what's achievable for your situation.
Should I cancel my credit card before applying for a mortgage?
It's not required, but it can be worthwhile. If you barely use your credit card, the approved limit still counts in the calculation of your maximum mortgage. Cancelling it or lowering the limit can directly increase your borrowing capacity in that case.
We map out your complete financial situation
Not sure whether your loan affects your maximum mortgage? During a free mortgage consultation, we review your complete financial situation, explain your options, and calculate directly how much you can borrow.
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