Mortgage calculation in The Netherlands | De Hypotheker | Hypotheker (2024)

FAQs

Is it hard to get a mortgage in the Netherlands? ›

That said, if you are new to a job, without a permanent contract, self-employed, on a low income, or of a non-EU nationality, it may be harder to get a loan or financing on 100% of the purchase price. The requirements change depending on the bank, but generally, you need: A valid passport. A BSN (citizen service number ...

The average interest rate for a fixed-rate mortgage in the Netherlands is currently around 4%.

In the Netherlands, you can borrow up to 100% of the value of the property. The maximum amount you can borrow on a mortgage is determined based on two things: Your income. The value of the property you want to buy.

When you're not an EU/EEA citizen, you need a residence permit. You live in the Netherlands (in general you can get an expat mortgage when you arrive, but some banks require that you have lived in Holland at least six months up to five years)

So, to buy or not to buy a house in the Netherlands? If you want to purchase a property and you can afford it, you should. House prices move up and down, and the value of your house will probably increase slightly or stay the same in the near future. In the long term the value of your property will rise for sure.

Capital market interest rates

If the ECB is assured that inflation will reach the target levels they will slowly start decreasing interest rates again. Potentially we could see this happening in the second half of 2024.

The average sales price of a home in the Netherlands peaked in August 2022, followed by a decline in the following months. In September 2023, it cost on average over 422,000 euros to buy a home, down from 438,000 euros in the same month the year before.

No down payment

Mortgage lenders in the Netherlands don't require a down payment. You're allowed to finance up to 100% of the property's market value (exceptions may apply to non-EU citizens). The only costs you have to pay yourself are purchasing and financing costs of about 5% of the purchase price.

To rent out your house, you have to ask for permission from the bank if there is a mortgage involved. This applies whether you want to rent out the whole property or just part of it. In most cases, the bank will not approve this as tenants are well protected in the Netherlands with various rules.

How to arrange a second mortgage? You might be able to transfer your current house loan to a new property in the Netherlands, keeping the same terms and interest rates. There is always an option to find a new mortgage lender with more favorable conditions, for example, lower interest rates.

How long are Dutch mortgages? ›

If you have decided to buy a house in the Netherlands, you will have to devote some thought to taking out a mortgage. There are several different types of Dutch mortgage to choose from, all of which have their own pros and cons. Because most Dutch mortgages have a duration of 30 years it is important to choose wisely!

A mortgage payment is calculated using principal, interest, taxes, and insurance. If you want to find out how much your monthly payment will be there are several good online mortgage calculators.

Using a percentage of your income can help determine how much house you can afford. For example, the 28/36 rule may help you decide how much to spend on a home. The rule states that your mortgage should be no more than 28 percent of your total monthly gross income and no more than 36 percent of your total debt.

A mortgage balance is the full amount owed at any period of time during the duration of the mortgage, and is the sum of the remaining principal owing and accrued interest.

After signing the preliminary purchase contract ('voorlopig koopcontract'), you'll need to pay the seller a deposit of 10% of the purchase price of the property. If you don't have enough savings, you can get a bank guarantee ('bankgarantie'). In general this will cost you 1% of the amount of the guarantee.

Applying for a mortgage takes on average between 4 and 8 weeks. This is the period between the consultation with a mortgage adviser and the final agreement from the lender. Sometimes an application can be completed in 1 week and sometimes it takes a little longer, for example in the case of a divorce.

If you are an expat and living in the Netherlands on a temporary basis, you, too, can take out a personal loan. The maximum term for your loan is the time you are scheduled to live and work in the Netherlands. If you are married or living together with a partner, you will be required to apply for the loan jointly.

The Netherlands has a very healthy property market, but it can be very competitive for buyers. You need to be on the ball at every step, and this means having the insider info on what it takes to succeed. If you're looking to buy a house or apartment in The Netherlands, there's a lot you need to know. But that's OK!