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Securing a Mortgage in the Netherlands as an Expat: A Guide

As an expat, it is possible to secure a house mortgage in The Netherlands. This allows you to live in a place that suits your preferences. Mortgages in The Netherlands may work differently than what you are used to. In this article, we’ll go over things that you need to know as an expat before applying for a mortgage in the Netherlands.

Securing a Mortgage in the Netherlands

Almost everyone needs a house loan in The Netherlands money to buy a house. Therefore, securing a mortgage is quite a common procedure.

The amount you can borrow depends on three things:

  • Your income and its certainty;
  • The value of the property, you can only borrow up to 100% of the property’s value;
  • The interest rate.


The Dutch law has extensive legislation to ensure that you do not borrow more than you can repay. This loan safeguard is verified with your monthly payslip and bank statement. Two of the major requirements to get a house mortgage are a fixed income in euros and a permanent employment contract. A temporary contract is also possible if your employer signs a Declaration of Intent, indicating their intention to extend your employment contract.

Are you curious about how much mortgage you can borrow? Use my mortgage calculator

Can a non resident get a mortgage in Netherlands?

If you’re an expat seeking to apply for a home loan in the Netherlands, you’ll need to have one of the following resident passes:

  • You are from an EU member state, Norway, Iceland, Switzerland, or Liechtenstein;
  • You have a permanent residence permit;
  • You are from the United Kingdom and have a valid residence document in addition to a passport;
  • You have a temporary residence permit.

 

What are the requirements to get a mortgage in the Netherlands?

If you are a non-EU resident and have a temporary residence permit, you may face additional requirements to secure a mortgage. Some lenders may not accept your application or may offer modified rates and conditions. Certain mortgage providers may require that you have sufficient ties to the Netherlands, while others may impose residency and work requirements. For instance, ASN Bank requires a minimum of three years of residency and work in the Netherlands, whereas NIBC requires at least six months of residency and work before they grant an expat mortgage.

Understanding Mortgage Payments in the Netherlands

A standard mortgage in the Netherlands is repaid over a 30-year period, with monthly payments covering both the principal and interest. The interest rate is determined by the amount borrowed and the current rates. When you secure a mortgage, you can choose between a variable or fixed interest rate. Opting for a fixed interest rate for a longer term of 5, 10, 20, or 30 years will give you more certainty about future costs. However, a longer term also means a higher interest rate.

Tax Benefit: Mortgage Interest Deduction

Expats and qualifying non-resident taxpayers in the Netherlands have the same tax rules as long-term residents, including a tax benefit in the form of the mortgage interest deduction when buying a house.

Mortgage Tax Benefits Deduction
Suppose you have a mortgage. This year, you pay a total of €8,000 in principal and €4,000 in interest. When filing your taxes, you can deduct the paid interest of €4,000 from your income. As a result, your taxable income is lower. Thus, you pay less tax. 

Additional Costs When Buying a House

Securing a mortgage incurs one-time costs, such as advisory and notary fees, and fees for appraisers. You can also hire a buying agent to assist in purchasing a home.

Three Steps of Buying a House in the Netherlands

Are you planning to buy a house in the Netherlands? Here are three common steps of home buying process in The Netherlands.

Step 1 – Choosing the Right Hypotheker for Your Mortgage Needs

Before securing a mortgage, consider seeking the advice of a mortgage advisor. They can provide valuable insight into how much you can borrow and what your options are. However, it’s important to note that in the Netherlands, there are different types of mortgage advisors or hypotheker.

Some advisors are employed by a specific mortgage provider and will only recommend their employer’s mortgage products. On the other hand, independent mortgage advisors – compare all mortgage providers to find the best one for you. Independent mortgage advisors take into account both costs and conditions, such as the ability to temporarily rent out your house while you travel abroad or make extra repayments if you wish.

Step 2 – Buying a house

Once you know how much you can borrow, you can start house hunting. Consider enlisting the services of a buying agent, who solely represents your interests in the transaction. A buying agent can provide you with valuable information about the property, including its pros and cons, and they can also negotiate the price on your behalf.

Step 3 – Making an Offer

Once your offer is accepted, you will be asked to sign a preliminary purchase agreement. From there, you can officially apply for a mortgage. Your mortgage advisor will gather all of your necessary personal and financial information, which will be shared with the mortgage provider of your choice. Based on this information, the mortgage provider will determine how much you are eligible to borrow.

It is wise to include a financing contingency in the purchase agreement. This means that you can withdraw from the purchase if you cannot obtain sufficient mortgage funding.

Different Types of Dutch Mortgages – Annuity VS linear Mortgage

Two popular types of mortgages in the Netherlands are the annuity mortgage and the linear mortgage. Mortgage interest deduction is only available for these two types of mortgages.

Annuity Mortgage
You pay monthly mortgage payments consisting of both interest and principal. In the beginning, you pay more interest and less principal. Over time, your debt decreases, which means you pay less interest and the principal portion increases. Your monthly payments remain the same throughout the term.

Linear Mortgage
With a linear mortgage, you repay a fixed amount each month. This means that your loan amount gradually decreases, and therefore you also pay less interest over time. Your total monthly payments are higher in the beginning but decrease progressively.

In the Netherlands, every mortgage provider offers these two types of mortgages, but each has its own set of conditions, creating differences in the details. This means that conducting thorough research is necessary to determine which mortgage is the best fit for your needs.
 

Is it difficult to get a mortgage in the Netherlands?

If you’re an expat living in the Netherlands, it’s possible to obtain a mortgage. However, it’s essential to pay close attention to the terms and conditions to ensure that you’re happy with your mortgage in the long term.

Working with an experienced mortgage advisor can increase your chances of obtaining a Dutch mortgage. This professional can provide clarity early in the process regarding how much you can borrow. For instance, you can obtain a “Financial check,” which determines the amount you’re eligible for. You can present this document to the home seller, which assures them that the purchase will proceed smoothly and increases the likelihood that they will sell the house to you.

Exploring Your Options in the Dutch Mortgage Market

If you’re contemplating buying a house in the Netherlands, but aren’t sure how much you can borrow, I’m here to help. As an independent mortgage advisor with comprehensive knowledge of the Dutch mortgage market, I offer guidance tailored to your specific needs.

Whether you’ve already found your dream home or are simply curious about your borrowing capacity, I am here to help. Let’s explore your mortgage options together! If you need more tips or a complete advice just schedule an appointment. The first appointment is always free of charge. 

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