Mortgage With Two Incomes: How Much Does the Second Income Count?

In short

If you buy a home together with a partner, you add both incomes to determine your maximum mortgage. Since 2023 the second income counts 100% (before that it was a lower percentage). Two incomes therefore often mean a considerably higher mortgage. In return, you are usually both jointly and severally liable for the entire loan.

How is your mortgage with two incomes calculated?

The provider adds your gross annual incomes together and, based on that combined income, determines how much may go towards housing costs. Nibud sets these financing-cost percentages each year. Because the percentage rises as income increases, a second income often yields more than you would expect at first glance. Work out your situation with our maximum mortgage calculator.

The lower of the two incomes has counted in full since 2023. Until then a rising percentage was used, slightly higher each year. That phase-in is now complete: both incomes weigh equally.

Both partners on the deed

If you take out the mortgage together, you are both on the loan agreement and jointly and severally liable. That means the provider can hold either of you responsible for the whole debt, not just half. It is therefore wise to make clear arrangements in advance, especially if you are not married. Record them in a cohabitation agreement.

What should you watch out for?

Two incomes create room, but also bring points to consider:

• Loss of an income. Through illness, unemployment or working less, the monthly costs can become heavy. So do not just budget to the maximum, but also check whether you could still carry the costs on one income.
• Death. A term life insurance ensures the surviving partner can keep paying for the home. With NHG such insurance is not compulsory, but it is sensible.
• Divorce. If you separate, the joint liability remains until the mortgage is adjusted. Read more about divorce and your mortgage.
• Flexible income. Does your partner have a temporary contract, work as a freelancer or with a letter of intent? Then the provider assesses that income differently. See how a permanent contract or letter of intent counts.

A difference in age or pension

If one of you reaches the state pension age during the term, the provider takes the lower post-retirement income into account. That can limit your maximum mortgage. Read how a mortgage and pension relate.

Want to know what you can borrow together and what costs are responsible? An independent adviser looks at your whole situation. Request a free advice session.

Frequently asked questions

Does the second income count in full?

Yes. Since 2023 the second income counts 100% when determining your joint maximum mortgage. Previously a lower, annually rising percentage was used.

Are we both liable for the whole mortgage?

If you take out the mortgage together, you are jointly and severally liable. The provider can hold either of you responsible for the full debt, not just your own share.

Can I take out a mortgage on my own if I have a partner?

You can, but then only your income counts and your maximum mortgage is lower. Sometimes this is sensible, for example if your partner's income is uncertain.