Frequently asked questions about getting a mortgage in the Netherlands

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We’ve collected some of the most frequently asked questions to help you with your online mortgage application.

A:In theory no. You can go straight to your bank. But in practice, buying a house in a foreign country can be pretty challenging. A financial advisor will help you set financial goals and priorities, and then recommend specific steps to meet them - and that includes buying a home.
A:Yes. Provided you are internet savvy, is perfect for first time buyers. charges a basic fee of €2,150 to find the best mortgage for you and sort out the paperwork. You only pay once the deal is signed, sealed and delivered.
A:No. is completely independent, allowing us to find the best possible mortgage for you from the widest choice of mortgage providers.
A:On average, the complete process should take somewhere between 2-4 weeks. However, this does depend in part on how quickly you are able to provide and upload all the information which is needed to assess your application.
A: You will need a variety of documents, depending on your individual situation, and some of them may be in Dutch.
The list includes:
  • Employers statement - werkgeversverklaring, which outlines the terms of your employment contract
  • Salary slip - showing your gross and net salary Copy of your passport and residency permit Recent bank statements
  • Valuation report
  • Proof of any additional assets
  • Additional documents which may be required by the mortgage lender takes your privacy very seriously indeed, and complies fully with all the appropriate legislation. Read our privacy statement here
A:As a rule of thumb, you can borrow 4.5 times your gross annual income, including holiday pay and regular bonuses. If you are buying a house with a partner, 90% of their gross annual income can be added to the total.
Different rules apply if you are self employed, and if you have the 30% ruling, you can borrow more.
In all, it can be complicated. If you want a better idea of the maximum you can borrow, you can raise this during your online meeting with one of our advisors.
A:There are lots of different sorts of mortgage available in the Netherlands, but only two allow you to deduct your mortgage interest payments from tax - the annuity mortgage (annuïteitenhypotheek) and the linear mortgage (lineaire hypotheek).
A: An annuity mortgage, also known as a repayment mortgage, is the most common type. The lender works out the amount you need to repay each month to clear your mortgage by the end of an agreed term. Your monthly repayment is made up of two parts:
  • An interest payment on the loan (will reduce over time)
  • A capital repayment (increases over time)
In the early years, most of your repayments will go toward paying off interest on your mortgage. But as your mortgage reduces, the interest part of the repayment goes down. So as time goes on, more of your monthly repayments go toward paying off the capital.
You can usually choose either a variable rate or a fixed rate annuity mortgage or in some cases a mixture of both (known as a split rate).
In the early years of the mortgage period, the annuities mortgage usually has lower monthly payments than a linear mortgage.
A: The linear mortgage repayment is made up of two parts:
  • An interest payment on the loan (will reduce over time)
  • A capital repayment (fixed amount per month)
With a linear mortgage, you repay the mortgage loan by a fixed amount every month. On top of this you pay interest, but the interest payments will reduce over time since you are gradually paying off the mortgage loan.
A linear mortgage can be useful for people who wish to repay their mortgage as quickly as possible and who are expecting a reduction in income sometime in the future.
A: There are several other types of mortgage in the Netherlands, but if you use them, you will not be entitled to mortgage tax relief.
  • An interest-only mortgage (aflossingsvrije hypotheek) is a mortgage in which you only pay interest on the loan and agree to repay the capital at the end of the mortgage period from savings or investment accounts.
  • A credit mortgage (krediethypotheek) is a flexible mortgage. You pay monthly interest on the amount you borrow, which depends on the value of your house.
  • A savings mortgage or guaranteed life life insurance mortgage (spaarhypotheek) is linked to a life insurance policy with a guaranteed return. The interest you get on your premium is equal to the interest you pay, hence you are 100% sure that your mortgage will be repaid at the end of the mortgage term.
  • A Guaranteed Savings Account mortgage (bankspaarhypotheek) offers a high level of security. With a bankspaarhypotheek you will save money at a fixed rate. This rate is equal to the mortgage interest rate, and at the end of the term you will be sure that you have saved enough money to repay the mortgage loan.
  • A hybrid mortgage (hybride hypotheek) is a combination of interest-only, savings and investment mortgages. You make interest payments but you have flexibility in how you generate the capital to repay the loan. During the course of the mortgage term, you can switch between saving and investing, taking advantage of low-interest rates and investment opportunities, or seeking less risk in a savings account.
A:Normally you need to reserve around 5% of the cost of the house to pay for all the other items associated with buying a house. But not everything is mandatory, and most are negotiable. The possible costs include:
  • Transfer tax (Overdrachtsbelasting): 2% of the purchase price (non-negotiable), for the over-35s buying a house to live in rather than as a buy-to-let investment. There is no transfer tax for first-time buyers under the age of 35.
  • Transfer contract (leveringsakte): usually between €500 and €1000 – the price is negotiable with the notary
  • Mortgage contract (hypotheekakte): usually between €500 and €1000 – the price is negotiable and the cost is tax deductible
  • Mortgage arrangement costs: the fee you pay your mortgage broker.
  • Estate agent fee (makelaarscourtage): If you used an estate agent to negotiate the sale on your behalf, you will have to pay a fee. This varies a lot and therefore negotiable but is usually between 0.85% en 1.25%.
  • Valuation (taxatierapport): around €500 and tax deductible.
  • Technical report (bouwkundigrapport): around €500 and not essential, though recommended for older houses.
  • You may also be asked to reimburse current owner for housing taxes (rioolrecht, OZB, afvalstoffenheffing) they have paid up front for the whole year.
  • Interest paid on your mortgage (tax deductible for maximum 30 years depending on the type of mortgage)
  • Repayments of the mortgage principle, depending on the type of mortgage
  • House insurance is mandatory unless arranged by the VVE (home owners association). The size of the premium depends on the cost of rebuilding the property.
  • Property tax (OZB taxes) – these vary per municipality and depend on the official value of the property (WOZ).
  • Waste tax (afvalstoffenheffing) – varies per municipality
  • Sewage charges (rioolheffing) – varies per municipality
  • Gas, water, electricity, internet, television usage costs – these obviously vary a lot per household and supplier.
  • The home owners levy or eigenwoningforfait is basically a small percentage of the official value of your property which is added to your income and taxed.
A:If you own a property in the Netherlands and you use it as your main residence, then you may be able to claim tax relief on your interest payments. In 2021, the maximum against which you can deduct the mortgage interest is 43% and the maximum period you can claim for is 30 years.
If you live in a leasehold property, you can also deduct the cost of ‘renting’ the land on which your property has been built (erfpacht) from tax.
A: There are several areas in which mortgages differ and which you should think about when deciding which mortgage to pick.
  • Is it possible to make extra repayments of the principle?
  • Are there fines for making extra repayments?
  • Can you agree to borrow more than you actually take out, so you have money in reserve to pay for improvements in the future?
  • Can you take the mortgage with you when you move to another house (verhuisregeling)?
A:The most popular fixed mortgage rate is 10 years, but you can go for as little as one or as high as 30. Take into account how long you expect to stay in the Netherlands and, how important it is that you know what you will pay in the future.
A:The exact conditions for (extra) repaying your mortgage vary from bank to bank, but typically in the Netherlands you can make an 10% extra repayment of the principal without running into extra costs.
A:In theory none. But given that the maximum amount you can borrow may not exceed 100% of the value of the property you will need around 5% of the purchase price in cash or savings to cover all the costs associated with buying a home.
A:No. But if you are interested in this type of investment, please contact FVDBoer
A:The NHG is a government scheme that covers homeowners’ losses if they have to sell their house for less than the outstanding mortgage because of divorce, illness or unemployment. Homeowners pay a surcharge of 0.7% on their mortgage to cover the cost of the scheme, but are often able to borrow at lower rates because of the reduced risk. In 2021, the scheme covers properties of up to €325,000
A:Life insurance is compulsory if you have an NHG mortgage, or a mortgage which falls under the National Mortgage Guarantee scheme. In most other cases it is not.
A life insurance policy is a straightforward product. It covers a certain amount for a certain period of time and will pay out if the insured person dies within this period. It can cover two lives or just one, depending on the situation.
A:The premium is calculated according to the scale of the coverage, age, health and whether or not the applicant smokes.
A:No, life insurance premiums are not tax deductible.

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