Mortgage Advisor
Do you need a mortgage advisor when buying a house in the Netherlands? When it comes to buying a house in the Netherlands, you can do a lot yourself. For example, finding a suitable property, going to viewings and even making offers. But if there is one thing that is always necessary it would be a mortgage advisor. However, technically it is not compulsory to have a mortgage advisor when you buy a house in the Netherlands. But not having one will make it much harder and complicated to be able to apply for a mortgage in due time.
The reasons you need a mortgage advisor
A mortgage advisor who is able to speak the Dutch and English language is able to translate the documents, so that you actually understand what you’re signing. Our mortgage advisors are able to help you with this as they speak fluently Dutch and English including the financial jargon. Your maximum borrowing capacity is also fairly important, as you want to know up to how much you could make an offer for a property. A mortgage advisor is able to determine how much you would be able to lend from various banks and lenders.
The borrowing capacity and being able to apply for a mortgage depends on couple of factors, namely:
- Your yearly gross salary, including allowances, bonuses etc.
- Your employment contract
- Your resident permit
- If you have any debt such as a student loan or personal loan etc.
When you start working with a mortgage advisor, make sure that it is a certified one. They will eventually mediate between you and the lender and make sure you get the best conditions and interest rate. Having a good mortgage advisor is pretty much essential in regard to the entire process.
Even more added value
Your mortgage advisor can also give you advice on which mortgage type is best for you or better said, which type suits your (current) situation. The most common types are mentioned below.
An annuity mortgage
With an annuity repayment scheme, you’ll pay a certain amount over the whole period of the mortgage. So, the monthly payments will stay the same every month. A part being interest and a part repayment.
A Linear mortgage
With a linear repayment scheme, you’ll pay a bit more per month in the beginning and this means that the repayment will gradually reduce over time. So, basically the other way around compared to an annuity repayment scheme. Also with this repayment scheme, a part is interest and a part repayment.
An Interest only mortgage
This is so far one the well-known payment schemes when having a mortgage. With an interest only mortgage type, you won’t pay of your mortgage debt, but just the interest. So eventually you’ll have a big part at the end of the road that has to be paid off. This is something that we call, risky business.
Make the most of it
After going through the mortgage application process, our mortgage advisors are able to help you with adding a certain amount to your mortgage for renovation purposes. You have also the possibility to refinance your mortgage at a later stage, when a part of it has been paid of and the market value has increased.
Mortgage Types
Frequently Asked Questions about Mortgages in the Netherlands
What types of mortgages are available in the Netherlands?
The main types are annuity mortgages (annuïteitenhypotheek), linear mortgages (lineaire hypotheek), and, under strict conditions, interest-only mortgages (aflossingsvrije hypotheek). Each type has a different repayment structure and impact on your monthly payments.
How much can I borrow for a mortgage?
Your maximum borrowing capacity depends on your gross income, financial obligations, and the market value of the property. Generally, you can borrow up to 100% of the property’s value.
What is the National Mortgage Guarantee (NHG) and what are its benefits?
NHG is a government-backed guarantee that provides extra security for both you and the lender. It often results in a lower interest rate and can protect you if you cannot pay your mortgage due to circumstances like divorce, job loss, or disability.
Is mortgage interest tax-deductible in the Netherlands?
Yes, interest on your mortgage for your mainresidence is tax-deductible, provided the loan is used for buying or improvingyour home and is fully repaid within 30 years.
What additional costs should I expect when buying a house?
Expect to pay transfer tax (overdrachtsbelasting), notary fees, valuation costs, advice and mediation fees, and possibly a bank guarantee. These costs are usually 4–6% of the purchase price.
Can I get a mortgage if I am self-employed or a freelancer?
Yes, but you will need to provide extra documentation, such as annual accounts and tax returns for the past three years. Lenders typically assess your average income over this period.
How long does the mortgage application process take?
The process generally takes 4 to 6 weeks fromapplication to final approval, depending on your situation and the lender’srequirements.
What documents do I need to apply for a mortgage?
Commonly required documents include proof of income, recent payslips or annual accounts, identification, bank statements, and details of the property you wish to buy.
Can I repay my mortgage early without penalty?
Most lenders allow you to repay up to 10–20% of the original loan amount per year without penalty. Early repayment above this limit may incur a fee.
What happens if I can no longer pay my mortgage?
Contact your lender as soon as possible. With NHG, you may be eligible for support. The lender will try to find a solution, such as a payment arrangement or, as a last resort, selling the property.
How does energy efficiency affect my mortgage options?
Energy-efficient homes may allow for a higher borrowing limit and sometimes qualify for a lower interest rate. There are also special loans and subsidies for making your home more sustainable.
What is the difference between an annuity and a linear mortgage?
With an annuity mortgage, your monthly payment stays (almost) the same, but the interest portion decreases over time. With a linear mortgage, you pay off a fixed amount of the principal each month, so your monthly payments decrease over time.
Can non-residents or expats get a mortgage in the Netherlands?
Yes, many banks offer mortgages to expats and non-residents, though extra conditions and documentation may apply.
How do interest rate periods (rentevaste periodes) work?
You can fix your interest rate for a certain period (e.g., 5, 10, 20 years). During this period, your interest rate and monthly payments remain stable.
What happens if I want to move before my mortgage term ends?
You can usually take your mortgage with you to a new property (portability), or you may need to repay your mortgage early, which could involve a penalty depending on your lender and contract.
Apply now for Expat Mortgage, Insurance or Personal Loan!
