ASN Bank puts 30% cap on interest-only mortgages
As of the middle of May 2026, customers of ASN Bank will be able to finance no more than 30% of their home’s value through an interest-only mortgage. Previously, customers could finance as much as 50% of their property’s value by not making repayments on the principal and paying only the interest on their loan. The new limit applies to all mortgages and offers issued on or after 11 May, regardless of the principal of the loan.
Customers with an existing interest-only mortgage loan will be subject to the new limit only if they make changes to their current loan or when the term of their mortgage ends. The end of the fixed-interest period of the loan will not typically result in the new limit being applied.
Angela Eijlander, Chief Sales & Marketing Officer of ASN Bank: “ASN Bank has made this decision after carefully weighing up all interests. Limiting interest-only mortgages serves both the bank's and customer’s best interests. However, a mortgage with an interest-only component can still be suitable for many, so this option will remain available despite our stricter policy. Our franchise partners and intermediaries will continue to have regular conversations with customers about their mortgage choices.”
Necessary step
This change is necessary because interest-only mortgages are increasingly viewed as a risk, partly due to the relatively large share of interest-only mortgages issued in the past. Supervisory authorities ECB and DNB have also recently highlighted this issue.
According to DNB, the main concern is the risk of banks having an excessive concentration of loans not subject to repayment on their balance sheets. ASN Bank acknowledges this, although this risk has decreased in recent years as more mortgage loans are being repaid or refinanced, and new mortgages typically have no interest-only component, or one that is much lower.
The AFM also points out that banks must deal with existing mortgages carefully, ensuring that “customers are not disproportionately affected by any measures taken to manage risks”. ASN Bank supports this focus on customer interests and will continue to uphold this principle when assessing individual customers, even in circumstances such as death or divorce.
“Since the nationwide Aflossingsblij campaign [an initiative of the Dutch Banking Association to raise awareness of the characteristics of interest-only mortgages, started in 2018], we have been reaching out to our customers to ask how they plan to manage their interest-only mortgage in the future. With this targeted approach, we’re able to engage with customers in a timely manner and keep an overview of their current financial situation,” says Angela Eijlander. “Our customers benefit from having a mortgage that best suits their financial situation.”
Tax context, interest rate environment and NHG
Tax rules have long discouraged mortgages where customers do not repay the principal of the loan. Since 2013, homeowners’ entitlement to deduct their mortgage interest payments from their taxable income only applies to the portion of their mortgage loan that they actually repay. Mortgages falling under the Dutch National Mortgage Guarantee (Nationale Hypotheek Garantie - NHG) also have a limit on the interest-only component of mortgage loans for some time.
Existing customers
For existing customers with a mortgage at ASN Bank, or its former brands including SNS Bank and RegioBank, the situation remains unchanged until the end of the term of their mortgage, even after the fixed-interest period has ended. This also applies to mortgages from BLG Wonen, which will continue under the new brand name of ASN Bank after 1 March 2026.
The new 30% limit will apply to existing customers only if they wish to change their mortgage, such as to increase the loan amount or secure new financing because of a move.
Customers with questions can find more information here or contact their advisor. ASN Bank has already informed its business partners (franchisees and intermediaries) about the change in mortgage policy and will support them with customer inquiries.
