Our mortgage advisors in Rotterdam can help you make sure you never pay more than you need to for your mortgage. Make it Happen is the slogan of the city of Rotterdam! This fits with our mentality to serve you with the best mortgage advice in Rotterdam.
Buying a house for the first time in Rotterdam
With the help from our firm we can make the complete mortgage process as clear and uncomplicated as possible. Buying your first home in Rotterdam or the Netherlands can be a very exciting time, but there is also a lot to learn. Our financial advice covers a wide range of tips and guidance for first time buyers; such as how to save for your mortgage.
Our firm specialises in independent mortgage and insurance advice. We offer a comprehensive range of mortgage products from across the market and provide services for expats for buying a house for affordable fixed fees:
- Home inspection / structural survey service for your new house;
- Screening of your purchase agreement;
- Home buying service.
What can you expect from our mortgage services?
We are committed to provide an excellent level of service. Many of our clients come from abroad. Recommendations to friends, family and colleagues and can be anywhere in Rotterdam. We work nationwide and therefore we provide mortgage advice over the phone, by e-mail or in person.
Independent mortgage advice
First of all you can expect independent and honest mortgage advise from us. This, more concretely, means that we have access to almost all mortgage lenders active in the Netherlands. We also have a partnership with foreign mortgage lenders. Besides, you have a legislator on your side who protects you.
Namely, we are required to have a license and there is an independent financial supervisor.
You can prepare the meeting with our mortgage advisors by call in your employer’s statement.
Need mortgage advice in Rotterdam? We are glad to assist you!
Want to live in the wonderful famous Dutch city of Rotterdam? Not surprising of course, because there is so much to see and do in Rotterdam. For instance the large Euromast or the beautiful Erasmusbrug. Want to have a look in the impressive harbor of Rotterdam? Take a harbor tour with Spido to see it yourself.
Are you looking for a home to buy in this bright city, or have you already signed a contract for a house and do you need mortgage advice? We are happy to serve you with specialised mortgage advice.
Our highly educated mortgage advisors will give you more then appropriate mortgage advice in Rotterdam. We love Rotterdam as well. Book an initial, free of charge, telephone consultation with one of our mortgage advisors right now!
Housing market in Rotterdam
The housing market is going through extraordinary times in Rotterdam. Especially within the centre area it is difficult to find a home. Without guidance is it very hard to get hold of a house in the city with the only magnificent skyline of the Netherlands.
Rotterdam, with its extraordinary port, has a lasting appeal on a large group of people. Expats often choose to live in Rotterdam compared to other cities because of its no-nonsense mentality of it’s residents.
There are some typical characteristics worth noticing in the housing market of Rotterdam:
- Some of the land belongs to the municipality and you have the it on a long lease. In short this means you pay a reimbursement to the local authorities.
- A lot of the apartments have an owners’ association.
Mortgage advice on making an offer with or without ‘subject to finance’ in Rotterdam
Any person currently looking for a home to buy in Rotterdam knows that offers are frequently made without a resolutive condition. Also known as a finance clause. This clause give you time to organise a mortgage for your new house.
Making an offer without this condition can cause a big risk. Because what happens if the bank refuses your mortgage application?
As this happens, you may then have to pay 10% of the purchase price as a penalty and the real cost of damage. Are you willing to take this risk? We can explain you alternative solutions to have the best bid and buying without this expensive risk.
Also we can help you with have a sort of pre-approval mortgage application.
Should I keep renting or buy a property in the Netherlands?
In the five years following on the end of the financial crisis, property prices in the Netherlands plummeted more than fifteen percent and left many homebuyers with mortgages that exceeded the value of their Dutch property. However, the Dutch housing market upswing that started mid-2013 is predicted to continue through 2018, as the Dutch economy and consumer confidence improve and interest rates remain at a historical low point.
These conditions have turned the Dutch housing market into a buyer’s market – particularly for first-time homebuyers – and increased local and foreign investment is pushing property prices back up again.
In contrast, rental prices remained relatively stable over the same period, and are showing significant growth as the economy recovers; in 2015, for example, housing experts said rental prices doubled in the main cities of Amsterdam, The Hague, Utrecht, Rotterdam and Groningen.
Rental housing platform Pararius recorded the average rental price in the Netherlands in 2016 at around € 1,365 a month but in Amsterdam the average was € 2,200 per month, while in Rotterdam the average was around € 1,200 and in The Hague € 1,500. One main cause is the short rental supply in the private sector, which accounts for only some 5 percent of total housing stock, with the remaining rental stock classified under the social housing sector, which has long waiting lists and restricted to those on high salaries. Read more about renting in the Netherlands.
In comparison, as a result of low interest rates, in some cases it is possible to secure a mortgage lower than the average rental prices. However, costs associated with buying property in the Netherlands total around 4-5 percent of the purchase price, thus buying Dutch property is more suitable for long-term investments, at least a minimum of five years. Based on the current price increase on the Dutch housing market it goes faster.
Can I get a mortgage in the Netherlands for my Rotterdam property?
Of course! There are no legal restrictions for non-Dutch citizens buying Dutch property or applying for a Dutch mortgage. However, if you are relatively new to a job or area, self-employed, on a low income or of a non-EU nationality, these may result in a stricter lending criteria and can become a bumpy road. This can result in a lower maximum Loan To Value (LTV). This is the ratio between the value of the house and the mortgage expressed in a percentage.
Each bank has different requirements, but in general, if you are from a country within the EU it helps a lot to apply for a mortgage. They will probably expect you to have a valid passport, have lived in the Netherlands for at least six months, have a citizen service number (BSN) and have permanent employment in the Netherlands.
You may need to pay a deposit and be limited to a maximum mortgage of 90 percent of the property value, although the Dutch bank does allow mortgages of the full value of a property.
Regardless of nationality, if you are employed you will need to show proof of income and a statement from your employer (werkgeversverklaring) with details of your contract and salary. Temporary workers and university researchers/PhD students will need statements from their employers/universities confirming their position. Self-employed people need to supply the last three years’ income tax returns and accounts.
As from 1 January 2013 the rules for mortgage loans are changed
If you live in a house that you own, you have an owner-occupied home. If you are a qualifying non-resident taxpayer, you may deduct the interest on your mortgage or loan for this house.
Did you buy an owner-occupied home after 1 January 2013? Or did you increase your mortgage or loan after 1 January 2013? Or is your mortgage or loan higher now than in 2012, because you bought a more expensive house? In that case, you will be dealing with new rules for the deduction of your (mortgage) interest.
On 1 January 2013, the rules on the deduction of interest on the home acquisition debt (mortgage interest deduction) were changed. For any new loans, you may only deduct interest if you repay the loan in monthly instalments. If you already had a home acquisition debt before 1 January 2013, you may continue deducting the interest on this debt and you are not obliged to repay.
What is National Mortgage Guarantee (in Dutch NHG)
The Dutch National Mortgage Guarantee (NHG) scheme is unique in Europe. It helps you take out a mortgage that is guaranteed by the Dutch government and gives you a interest discount. This discount can be up to 0,5%!
And if you do run into problems meeting your mortgage payments due to circumstances beyond your control, the National Mortgage Guarantee may provide a safety net for you, and your mortgage lender.
When you take out an NHG-backed mortgage, you know for sure that your mortgage matches your income. That’s because your mortgage meets the criteria for responsible lending and borrowing set by the National Institute for Family Finance in the Netherlands (NIBUD). So you know for sure that you’re not borrowing more than you can afford. After making the monthly mortgage payment you’ll still have money left for other expenses like groceries, insurance and your savings account.
Safety net if you can no longer pay your mortgage
If you have an NHG-backed mortgage and can no longer pay your mortgage due to specific circumstances beyond your control, you and your mortgage lender can turn to us for support.
The specific circumstances under which NHG comes into operation are:
- if you lose your job;
- if your relationship ends;
- if you become disabled for work;
- if your partner dies.
The National Mortgage Guarantee is referred to in Dutch as ‘NHG’ or ‘Nationale Hypotheek Garantie’ (NHG). The maximum mortgage in 2018 with NHG is € 265.000. Other conditions of this program.
Taking out a mortgage as an entrepreneur
Starting a business or already being in business and buying a house in the Netherlands? They are two of the biggest things you can do in life – but do buying a home and starting a business go hand-in-hand?
For many new business owners, the prospect of securing a mortgage fills them with dread. Judging by the number of client enquiries we receive many still fear that a freshly-formed business will, in the eyes of lenders’ underwriters, disqualify them from mortgage eligibility.
On the flip side, many would-be business owners are forced to prioritise, preferring to defer their career ambitions, to secure their family home first. Only returning to their business dreams, sometimes years, later.
But the anxiety around the implications of starting a business on your mortgage eligibility doesn’t need to be so thorny.
It’s getting easier to get a mortgage as an entrepreneur
True, historically, securing a home has been less straightforward for the self-employed than for employees. But, while in years gone by many lenders have shut up shop when approached by fledgling entrepreneurs, I have good news as most have now relaxed their rules.
More specifically, whilst lenders all used to operate different criteria when it comes to assessing mortgage applications, many have now standardised the way they judge affordability. And the pool of lenders and products available to business owners is growing all the time.
So, don’t worry – just like for your salaried friends, as long as your finances are fundamentally sound the chances are that you will get a mortgage.
How to navigate the mortgage application process if you’re a business owner
Many new business owners stress that mortgage lenders will require three years’ of good accounts against which to judge an application. Yet, whilst three years typically remains the period underwriters tend to look back on, the focus of their energies has changed.
Rather than dive in to your company accounts, most lenders also want to see your personal tax calculation. That means, just like employees, you need to show lenders proof of earnings after and before tax.
Remember, your lender is also interested in the health of your business – as long as you can demonstrate a viable flow of cash – whether in dividends or salary – to your personal finances.
Plan your business finances
This doesn’t mean, however, that, when you want to buy a house you can embark on a new business with impunity.
Yes, there are fewer technical hurdles to securing a mortgage but you must nevertheless consider the impact of starting a busines on your underlying finances.
You want to avoid getting into a situation where you are forced to defend your business plan or attempt to justify first-year set-up costs as one-off as this could cause delays to the whole process.
When are you obliged to repay?
In order to be allowed to deduct the interest, you are obliged to repay the loan in the following situations:
- You take out a mortgage or loan for the first time;
- You increase your existing mortgage or loan, for example for a refurbishment;
- If you already had a home acquisition debt on 31 December 2012, the repayment obligation will only apply to the additional amount you borrow;
- You must repay the loan on an annuity basis or by equal amounts in no more than 360 months (30 years). In both cases, you will pay a fixed monthly amount consisting of interest and repayment. You are entitled to interest deduction in both cases.
For having an indication of your future mortgage payments please contact us.
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