Top 15 Questions Expats Have About Mortgages in The Netherlands

Moving to the Netherlands is super exciting. Every part of your life changes, from your commute to work, your friends, and where you work. However, on the downside, finding somewhere to live can quickly bring you back to reality. Currently, the Dutch rental market is considered highly competitive. Naturally, buying a house soon seems like an attractive alternative. However, navigating a mortgage in the Netherlands can be quite scary because the terms are usually in an unfamiliar language for most people. “Can I get a mortgage on a temporary contract?” “How Much Can I Borrow?” Whether you are a researcher with 30 years of experience or a freelancer working for an up-and-coming company, we’ve answered these questions and more from expats about mortgages in the Netherlands.

1. Can I Get a Mortgage Without Being A Dutch Citizen?
2. How Much Can I Borrow For A Dutch Mortgage?
3. Does The 30% Ruling Help Me Borrow More?
4. Can I Get a Mortgage on a Temporary Contract?
5. What Does ‘Kosten Koper’ Mean (Buyer’s Costs)?
6. Do I Need the Nationale Hypotheek Garantie (NHG)?
7. Annuity vs Linear: Which One Is Best to Choose?
8. Do You Accept Foreign Savings?
9. How Does My Student Debt and Other Loans Affect My Mortgage?
10. What is a BKR check?
11. Do I Really Need a ‘Makelaar’ (Real Estate Agent)?
12. Why Is Everybody Overbidding?
13. What Is The ‘Hypotheekrenteaftrek’?
14. What Happens If I Leave The Netherlands In 5 Years?
15. How Long Does It Take To Get A Mortgage In The Netherlands?

1. Can I Get a Mortgage Without Being A Dutch Citizen?

Yes, you can. You do not need a Dutch passport or permanent residence to apply for a mortgage. As long as you are an EU/EEA citizen or have a valid temporary residence permit that allows you to work, an application will be considered. Banks are primarily interested in the stability of the applicant’s income and living situation in the country. Non-EU citizens within Europe may be required to show a longer period of residency in the Netherlands: about 6 to 12 months. Thus, securing a mortgage is very accessible.

2. How Much Can I Borrow For A Dutch Mortgage?

In many countries, you may need to accumulate an additional 20% of the purchase price before a bank will consider lending to you. In the Netherlands, this translates into 100% Loan-to-Value (LTV). In other words, you may be able to borrow up to the actual market value of your property, where, if the housing is appraised at €400,000, then the bank will be in a position to offer you €400,000. Please keep in mind that your total borrowing power will always be capped based on gross annual income.

3. Does The 30% Ruling Help Me Borrow More?

For many expats, this is a major advantage. The 30% ruling is a tax benefit that increases your net income.

Dutch lenders understand this ruling well. Most major banks will factor a portion of that extra net income into their calculations, which can significantly boost your borrowing power. Remember, the decision is temporary. When it ends, your monthly net income will drop, but your mortgage payments could remain the same. Plan accordingly.

Read Also: Closing Costs of Buying a House in the Netherlands

4. Can I Get a Mortgage on a Temporary Contract?

Where a temporary contract is ‘not enough,’ you will have to arrange for an Employer intensive declaration (Intentieverklaring). This comes from your employer, who disregards the limitation of impermanence and confirms a permanent contract is expected at a later date. In the vast majority of cases, Dutch banks accept this as proof of fixed income. Freelance workers usually must present audited accounts for the most recent three years, or some specialist expat mortgage providers may notch you up after just a year of working in a field with an outstanding labor demand. So, “Can I get a mortgage on a temporary contract?” Yes, you can

5. What Does ‘Kosten Koper’ Mean (Buyer’s Costs)?

Some say you don’t need to have savings to invest in a house here. Actually, you can borrow up to 100% of the property’s worth, but never the associated costs. These Buyer’s costs (KK) will usually range from 4% to 6% of the purchase price. Among the costs to be paid are the following:

• Transfer Tax (overdrachtsbelasting): Normally 2%, though the State made it 0% for buyers under 35 setting up their first home up to €555,000.
• Notary Fees: These are intended for preparing the deed transfer and mortgage deed.
• Mortgage Advisor Fees: These are also charged for sensible financial advice.
• Appraisal Fee: The home’s value will be provided to the bank.
• Technical Inspection: To check if the property is structurally sound.

6. Do I Need the Nationale Hypotheek Garantie (NHG)?

NHG refers to a Nationale Hypotheek Garantie. This serves as a financial safety net. In the event of job loss, divorce, or disability-related incapacitation, if you can’t afford to make the monthly payments, the government will step in to ensure that all ‘failure-to-pay-the-mortgage’ debts are serviced.

Since NHG covers default payments, the bank will offer you a hefty discount on your interest rate—Typically around 0.5% (so 3.5% from 4.0%). However, the condition is that you can only get the Nationale Hypotheek Garantie on a house that costs less than their set maximum value of €470,000 (€498,200 max for energy upgrades). Always take NHG if the house falls under this range.

7. Annuity vs Linear: Which One Is Best to Choose?

To qualify for the Dutch mortgage tax deduction, you must choose one of these two repayment types:

Most expats select an Annuity mortgage because the lower initial payments help free up cash for moving and furnishing the new home.

8. Do You Accept Foreign Savings?

Yes, but be prepared for a lot of paperwork, certainly. The Dutch banks are really serious about their Anti-Money Laundering regulations. If you make large inbound transfers in your own account, it will be necessary to show quite a bit of paperwork as evidence for the source of these funds, such as, but not limited to, pay slips, documents on inheritance, or even proof of house sales.

9. How Does My Student Debt and Other Loans Affect My Mortgage?

Declare your Schuld (debt). The Dutch banks are required to assess the maximum mortgage you could afford based on the total mortgage amount and your monthly debt obligations, rather than just the remaining balance. By making a small monthly payment, one can dramatically affect one’s maximum loan capacity. The BKR (the national credit registry) is checked to inform a lender of the debtor’s debts.

10. What is a BKR check?

The Bureau Krediet Registratie (BKR) is the national credit registry for the Dutch. Unlike other countries’ scoring systems, where higher scores indicate better performance, in the Netherlands, having no consumer debt is the best score.

Private lease cars, credit cards, smartphone contracts; these are the debts that reduce the income considered available each month by a bank.

11. Do I Really Need a ‘Makelaar’ (Real Estate Agent)?

Not legally. But practically, it is essential. In a buyer-favored market, sellers are more likely to choose buyers going through a ‘Makelaar’. Such an agent knows average values of property, zoning regulations, and negotiation techniques in procuring a property at its best possible cost.

12. Why Is Everybody Overbidding?

In Holland, the asking price is often understood only as a starting point. This is why offers sometimes go to either 5% or 10% above the list price to win.

In the instance where you bid €450,000 on a property carrying an appraised value of €420,000, the bank will provide financing of only €420,000. Now it will be your obligation to fund the remaining €30,000 from your own savings, or to be covered under a financing clause in the offer in the event of a funding shortfall during financing.

13. What Is The ‘Hypotheekrenteaftrek’?

It’s the mortgage interest tax deduction. The Dutch government has an incentive to encourage home ownership by giving you tax relief on your mortgage interest payments. This amounts to a refund from the tax office, reducing your net monthly housing costs.

14. What Happens If I Leave The Netherlands In 5 Years?

Many expat workers face such eventualities. Usually, you have two choices:

• Sell the house: Hopefully, the value of your property will have appreciated by the time you decide to sell it.
• Rent it out: Most residential mortgages have conditions that do not allow you to rent it out without the bank’s permission. You might have to switch to a Buy-to-Let mortgage, which will come with a higher interest rate.

15. How Long Does It Take To Get A Mortgage In The Netherlands?

Buying a property in the Netherlands is exceptionally fast and simple. From accepting your offer to handing over the keys, the entire process could take six to eight weeks.

• Week 1: The provisional purchase deed is being signed.
• Weeks 2-5: Your mortgage application will be submitted to the bank for your mortgage documents’ review.
• Week 6: The final mortgage approval week.
• Week 8 -12: Signing the acts and receiving the keys.

With over a decade of experience in the financial sector, Financial Consultancy Holland specializes in guiding Dutch residents and expats through the mortgage application process in the Netherlands. Whether you’re buying your first home or refinancing, Financial Consultancy Holland helps you secure the best mortgage solution tailored to your needs.