The process of a Buy-to-let mortgage in the Netherlands
Jan 10, 2023

The process of a Buy-to-let mortgage in the Netherlands

Buy-to-let mortgage in the Netherlands

A buy-to-let mortgage is a form of mortgage that is created for people or businesses that want to acquire a property with the goal of renting it out to renters. Banks and other financial organisations in the Netherlands provide buy-to-let mortgages, which are subject to various restrictions and regulations.

One of the most important factors for individuals or companies seeking for a buy-to-let mortgage is the sort of property they want to purchase. In general, banks will only consider giving a buy-to-let mortgage on properties deemed acceptable for rental purposes, such as flats or homes. Holiday houses and second residences, for example, may not be eligible for a buy-to-let mortgage.

When evaluating whether to give a buy-to-let mortgage, lenders will assess the borrower's creditworthiness and financial circumstances in addition to the kind of property. This might include the borrower's income, debt-to-income ratio, and credit history.

The Term and conditions of a Buy-to-let mortgage in the Netherlands

The terms and conditions of a buy-to-let mortgage in the Netherlands may differ based on the bank/ lender and the borrower's unique circumstances. However, common characteristics of buy-to-let mortgages in the Netherlands include a fixed or variable interest rate, a repayment duration of up to 30 years, and a down payment of at least 20-30% of the property's purchase price. Keep in mind that the transfer tax for a Buy-to-let property will be 10,4% in 2023, based on the purchase price.

In the Netherlands you are able to finance a buy-to-let property up to 70%, 80% and even 90% of the market value in a rented state. We have multiple banks/ lenders such as Dynamic Credit, ABN AMRO Bank, NIBC, Domivest, RNHB, Woonfonds and Nationale-Nederlanden. 

It's critical to weigh the risks and obligations of owning a rental property, as well as the possible expenses and advantages of getting a buy-to-let mortgage. Before making a choice, individuals and companies interested in acquiring a buy-to-let mortgage in the Netherlands should conduct research and consult with a financial counsellor or mortgage broker.

How much is the down payment for a Buy-to-let property and the mortgage?

The numbers below are indications and examples to make the costs and process more transparant.


1. Purchase price: € 300.000

2. Transfer tax (10,4% in 2023): € 31.200

3. Appraisal report fee: € 950

4. Real Estate agent fee: € 3.000

5. Financing costs via us: € 3.295

6. Notary fees: € 1.600


Total costs: € 40.045

Market value in a rented state: €210.000 (30% less)

(Always much lower than regular market value)


90% financing option via Dynamic Credit: € 210.000 x 90% = € 189.000 mortgage amount

€ 189.000 - € 300.000 = € 111.000

Total savings needed: € 111.000 + € 40.045 = € 151.045 

With the calculation above in mind you should be able to have a clear overview of what you can expect. You can also read more on our investors page.

Do you have questions or do you want to speak to one of our advisors, get in touch with us.