The exact conditions for (extra) repaying your mortgage vary from bank to bank, but typically in the Netherlands you can make a 10% extra repayment of the principal without running into extra costs.
mortgages, financial planning and buying a property from abroad
The most popular fixed mortgage interest rate in the Netherlands is 10 years, but you can go for as little as one or as high as 30. Our financial advisors can help you in working out which would be the most sensible option for your personal situation.
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 which include transfer tax, legal fees and costs for a survey and valuation report. Our financial advisors can help you work out how much you are likely to pay.
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).
An annuity mortgage, also known as a repayment mortgage, is the most common type of mortgage in the Netherlands. 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 and a capital repayment.
The linear mortgage repayment is made up of an interest payment on the loan and capital repayment. 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.
There are several other types of mortgage in the Netherlands, but if you opt for one of these, you will not be entitled to mortgage tax relief. Our financial experts can advise you on whether these are suitable for your personal situation.
Yes you can, but you will need expert advice to arrange it, particularly if you want to rent it out to someone else. This will have implications for your mortgage and you will need to get permission from your mortgage provider to do so. Your local authority may also have rules in place that affect who you can rent your property to.
Increasing your mortgage, for example to pay for an extension or better insulation, will have an impact on your repayments, the mortgage interest rate you pay and your mortgage interest tax deduction. If you are looking to increase your Dutch mortgage, our financial advisors can help you find the best deal to fit your personal circumstances.
Yes, you can – in most cases. One of the most important things to take into account is the bridging loan – how you will financially cover the period between selling your home and buying a new one – and this can be quite complicated. Our financial advisors are experts at dealing with bridging loans when people are upsizing or downsizing. Contact us to find out how we can help.
Working out how much you can borrow is complicated, particularly when you are an expat, which is why we do not offer an online mortgage calculator. You can assume you can borrow roughly 4.5% of your annual salary, but this can vary widely, depending on your individual circumstances. If you want a better idea of the maximum you can borrow, please get in touch and set up a meeting with one of our financial advisors.
No. We are completely independent, allowing us to find the best possible mortgage for you from the widest choice of mortgage providers.
In theory no, you can go straight to your bank. But in practice, buying a house in a foreign country can be pretty challenging, which is where we come in. Our financial advisors will determine how much you can borrow, and guide you through the complex process of securing your mortgage and purchasing your home. On top of that, we take full responsibility for the whole process, sorting the paperwork and meeting deadlines, so you will have one less thing to worry about.
What else would you like to know?
If we have not answered your question, please get in touch.
"required" indicates required fields