Can You Get a Dutch Mortgage With a Temporary Contract?

If you have a temporary or fixed-term employment contract, you may assume that Dutch banks will automatically reject your mortgage application. Fortunately, that is not necessarily the case.

You can get a Dutch mortgage with a temporary contract. However, how a lender assesses your income depends on your employment situation, your employment history, and whether your employer expects to continue your employment.

Here is what expats with temporary contracts need to know.

How Dutch Lenders Assess Temporary Contracts

A temporary employment contract doesn’t automatically make it harder to get a mortgage in the Netherlands. Lenders can consider your income, even if you don’t have a declaration of intent. The key difference is how long they can rely on that income when calculating how much you can borrow.

If you have a temporary contract and your employer has given you a declaration of intent confirming they plan to continue your employment indefinitely, you can count your current income for the full term of the mortgage. This applies as long as you’re no longer in a probation period, and there are no clear reasons to expect your employment to end.

Read Also: Mortgages in the Netherlands – Everything You Need to Know About Dutch Mortgages

What Is a Declaration of Intent?

A declaration of intent is included in the employer’s statement used for mortgage applications in the Netherlands. It tells the lender that your employer expects to offer you a permanent contract once your current temporary contract ends, as long as your performance and the company’s situation remain stable.

This can make a significant difference to how much you can borrow. ABN AMRO says people on temporary contracts can still get a mortgage, and that a declaration of intent to offer a permanent contract lets the lender fully account for your income.

It’s also important to distinguish between an intent of a permanent contract and an intent to simply renew your temporary one. A new temporary contract can help, but it carries less weight.

What If You Don’t Have a Declaration of Intent?

Not having a declaration of intent does not mean you cannot get a mortgage. The lender may just need more information to assess how reliable your income is.

If you have a fixed-term contract and no declaration that your employer plans to keep you permanently, the lender can count your income only until your contract ends. However, that is not necessarily the end of the story. In some cases, lenders can also look at your income over the previous three years to work out how much you can borrow.

The exact calculation depends on the lender. ABN AMRO, for example, says that without a declaration of intent, it can base the maximum mortgage on whichever is lowest: your average gross income over the previous three calendar years, your gross income from the most recent calendar year, or your current income shown on your employer’s statement.

Rabobank also states that a temporary contract does not necessarily require a declaration of intent to get a mortgage. The bank may instead look at your employment history and your prospects on the labor market.

So, two people with the same salary and the same type of temporary contract could end up with different options. Their previous work history, income and the lender they choose can all make a difference.

What If You’re Still in Your Probation Period?

If you’re in your probation period, it can be more difficult because your job isn’t considered secure yet.

For example, ABN AMRO says that you cannot take out a mortgage while you are still in your probation period. The reason is fairly straightforward: there is still uncertainty about whether your employment and income will continue.

The NHG scheme has specific ways of assessing income for people still in their probation period, including looking at previous annual income in certain situations. So if you’re in this position, it is worth checking with the lender rather than assuming you have to wait until your probation period is over.

What Documents Do You Need?

If you are applying for a mortgage on a temporary contract, the lender will want to see a clear picture of your income and employment situation. Usually you’ll need some combination of:

• Your employment contract
• Recent payslips
• An employer’s statement confirming your employment and income
• A declaration of intent, if applicable
• Annual income statements
• Employment or income information from UWV, where applicable
• Information about existing loans or other financial commitments

The documents you will need can differ from lender to lender, so check with them before you apply. It is much easier to collect everything upfront than to find out later that something is missing.

Can a Temporary Contract Reduce How Much You Can Borrow?

It can, but not necessarily.

A temporary contract does not directly translate to a lower mortgage. What matters is how the lender views your income and how much of it they are comfortable counting when calculating your borrowing limit.

For example, two people could both earn €60,000 a year, but get different results if one has a temporary contract with a declaration that their employer plans to offer them a permanent contract, while the other does not.

This is one reason it can be useful to speak to a mortgage advisor before making an offer on a property, especially if your employment situation is a little more complicated.

Should You Speak to a Mortgage Broker?

If you have a temporary contract, it may be worth comparing lenders rather than assuming they’ll assess your situation the same way. Their rules and income calculations can differ.

A mortgage broker can review your contract, income history, and overall situation, then help you identify which lenders are most likely to accept your application.

A broker with expat experience can be especially helpful for internationals. They’re used to different types of employment contracts and can explain Dutch mortgage terms and paperwork in plain English.

The Bottom Line

Yes, you can still get a mortgage in the Netherlands even with a temporary contract.

What matters is how the lender views your income and how dependable it is. A declaration that your employer plans to offer you a permanent contract can make things easier, but it is not the only way to qualify.

So if you are currently on a temporary contract, don’t assume you have to wait for a permanent one before you can buy a home. Your income, work history, and personal situation all play a part. You may have more options than you think.