On July 14, 2016, Dutch law was amended in connection with the Mortgage Credit Directive (MCD), the European directive for consumer home mortgages. The new legislation includes standards for calculating repayment costs.
On March 20, 2017, the Dutch Authority for the Financial Markets (AFM) issued guidelines on how lenders can comply with the new legal standard. ING decided to apply these guidelines retroactively from July 14, 2016, when calculating repayment costs. This also applies to settlement costs charged by ING for adjusting interest during a fixed-interest period. This means that as of June 22, 2017, we have adjusted our calculation method in several areas. For some customers, we will recalculate the costs.
"}},{"componentType":"sectionTitle","title":"Which mortgages are affected?"},{"componentType":"paragraph","richBody":{"value":"Mortgages of customers who, between July 14, 2016, and June 22, 2017:
By the end of 2017, ING processed almost all recalculations of repayment and/or settlement costs—about 90% of the total. These customers have received the recalculation and, if applicable (when recalculated costs are lower), have been reimbursed. If the recalculated costs are higher, customers do not need to pay the difference.
Some cases require more attention, for example, when multiple changes were made during the relevant period. These customers will receive their recalculation and any reimbursement as soon as possible, but no later than March 31, 2018.
ING aimed to provide customers with a recalculation and reimbursement by the end of 2017. We regret that this was not possible for some customers. At the same time, we value a careful process. These customers have been informed about the delay and will receive interest compensation for the period between paying the original costs and receiving reimbursement.
"}},{"componentType":"sectionTitle","title":"New repayment or intermediate interest adjustment"},{"componentType":"paragraph","richBody":{"value":"From June 22, 2017, we can calculate repayment and settlement costs according to the AFM guidelines. So, if you made an early repayment or adjusted your mortgage interest before June 22, 2017, we will recalculate those costs. Want to know more about redemption costs?
"},"textLinks":[{"url":"/en/personal/mortgage/your-mortgage/early-repayment-and-interim-mortgage-rate-adjustment-charges","text":"Costs for repayment and intermediate interest adjustment of your mortgage"}]},{"componentType":"sectionTitle","title":"What does the recalculation mean for your tax return?"},{"componentType":"paragraph","richBody":{"value":"If the repayment or settlement costs relate to your home loan and you receive a refund from us, the tax authorities consider this as refunded mortgage interest. For your 2016 and 2017 tax returns, this has no impact because you will receive the refund from ING in 2018.
In your 2018 tax return, you must deduct the refunded amount from ING from the mortgage interest you paid in 2018 for the same loan. If you use monthly refunds via a provisional assessment, you may receive less money back from the tax authorities in the final assessment or may need to pay an additional amount (possibly with interest). We will do our best to make this process as easy as possible for you.
"}},{"componentType":"sectionTitle","title":"More information"},{"componentType":"linkList","iconTitle":{"title":"More information"},"textLinks":[{"url":"https://www.afm.nl/nl-nl/professionals/nieuws/2017/mrt/vervroegd-aflossen","text":"AFM publication March 20, 2017"},{"url":"https://www.afm.nl/nl-nl/consumenten/nieuws/2016/jul/europese-hypothekenrichtlijn-cons","text":"AFM publication MCD July 14, 2016"}]}]}}}