How does your income determine the amount of your loan?

In the 2026 financial landscape, the relationship between income and borrowing capacity is closer than ever. Whether you're applying for a mortgage for a first home or considering a personal loan for a renovation, your income is the fundamental building block that determines how much a lender trusts you. In the Netherlands, we will work with stricter Nibud standards in 2026, not only looking at the absolute amount on your paycheck, but especially at the balance between your income and the increased cost of living.

Determining a loan amount is not a piece of hand, but a complex calculation where your gross income is converted into a responsible monthly disposable amount. In this article, we analyse exactly how this process will work in 2026.

Test income: More than just a basic salary

The basis for each loan is the “test income”. In 2026, banks are looking beyond just your monthly monthly salary. To get a realistic picture of your financial capacity, various income components are included:

• Fixed surcharges: Vacation pay (usually 8%), thirteenth month and fixed end-of-year benefits are fully included.
• Variable income: Irregularity allowances, commissions and overtime are often included on average over the past twelve months, provided they are structural.
• Second income: For two-earners, 100% of the second income will be included in the calculation of the financing burden in 2026. This ensures a significantly higher borrowing capacity for couples compared to previous years.
• Entrepreneurial income: For self-employed people, the average net profit over the last three years is usually taken into account in 2026, although there are more options for starting entrepreneurs based on an income statement.

Financing burden rate and the housing ratio

A crucial concept in 2026 is the financing burden rate, also known as the housing ratio. This is the maximum percentage of your gross income that you can spend on housing costs (interest and repayment) according to Nibud standards.

In 2026, these percentages were refined and will be rounded to 0.1% to prevent abrupt shocks in the event of small income increases. The logic is simple: the higher your income, the greater the amount you can spend on a loan, because your basic living expenses (such as groceries) account for a relatively smaller part of your budget. However, due to the inflation adjustments of 2025 and 2026, “free margins” have become more critical. Those who earn the same in 2026 as in 2025 will often see their borrowing space fall by several thousand euros because life has simply become more expensive and there is therefore less' left 'for the loan.

The impact of wage increases in 2026

There is also good news for borrowing capacity in 2026: due to the expected average wage increase of around 4.1% in the Netherlands, many households will still be able to borrow more despite the stricter standards.

The numbers speak for themselves:

• Joint income of €70,000: With a wage increase of 4.1%, you can borrow around €6,000 more in 2026 than the year before.
• Joint income of €100,000: Here, the benefit is up to an additional €15,500 in loan space.
• Single people: For singles with an income above €28,000, the additional borrowing space of €16,000 to €17,000 will be maintained, helping them compete in a tight housing market.

The influence of debts and financial liabilities

Your income determines what comes in, but your existing obligations determine what is actually available for a new loan. Every euro you already spend on another debt is deducted from your borrowing capacity.

In 2026, private lease contracts and student debts in particular will be heavily weighted. Student debt is assessed on the basis of the actual monthly payment. Although the interest rate on student loans fell slightly in 2026, the effect on your maximum loan remains significant. Maintenance obligations and other credits (such as a credit card limit or an overdraft option) are also deducted directly from your test income before the bank calculates how much you can borrow.

Income versus energy label: The green bonus

In 2026, the loan amount no longer depends solely on your paycheck, but also on the sustainability of the object you're financing. Income forms the basis, but the home's energy label acts as a multiplier.

Because an energy-efficient home means lower monthly costs for gas and electricity, the bank assumes that you have more space in your budget for the loan itself. In 2026, for a home with an energy label A or B, you can often borrow an additional €10,000 on top of what your income allows. For the most efficient homes (A++++ with a guarantee), this additional amount can amount to €40,000. Please note: in 2026, these additional amounts for the highest labels will be slightly lower than in 2025, due to the loss of the netting scheme for solar panels.

The role of current market interest rates

Although your income may be stable, market interest rates change daily. In 2026, the higher the interest rate, the lower the amount you can borrow with the same income.

This is because the bank looks at the total monthly payment (interest + repayment). At a higher interest rate, a larger part of your permitted home ratio is spent on interest expenses, so there is less room for repayment of the principal. Even a small interest rate increase of 0.5% in 2026 could mean that you can borrow tens of thousands of euros less, despite an excellent income. Choosing a fixed-interest period is therefore a strategic decision that directly affects how much your income weighs in the final loan amount.

In 2026, your income will be the engine behind your borrowing capacity, but the preconditions such as inflation, debt and sustainability will determine the ultimate acceleration. It is a dynamic interplay where transparency about your financial situation is the key to a responsible loan.