Mortgage takeover after divorce – How does it work?
Divorce ensures that many things need to be arranged. Especially when you own a house together. This house is often also charged with a mortgage. First, agreements must be made about the plans for the house. Are you staying in the house and buying out your ex-partner or vice versa? Or you decide together to sell the property and repay the mortgage.
At the moment that you or your partner solely own the house and you are not married in community of property, the house does not have to be divided. If you have made prenuptial agreements then special arrangements can be made regarding the mortgage and the home.
Mortgage takeover after divorce
This sounds easier than done. There is a lot to look at before a mortgage can be taken over or be transferred to one name. It is also possible that a new partner wants to sign into the mortgage deed. This is then called ‘jointly binding’.
For example, you first need to make agreements and secure them in a divorce agreement. The mortgage provider can assess your application on the basis of this document, among other things.
Until the mortgage has been taken over or a new mortgage is contracted, you and your partner remain jointly liable for the mortgage. You both remain liable for the mortgage provider or bank if the monthly payments are no longer paid. It does not matter whether you are still living in the house. The relocated partner who still appears in the mortgage agreement remains liable.
Home acquisition debt and divorce
Are you both owner of the house and have you taken out a mortgage for the house then you also have each right to half of the so-called home acquisition debt. This is a fiscal concept. This is the amount of the mortgage on which you may deduct mortgage interest if you meet the conditions.
This home acquisition debt is personal and not transferable. Why this is relevant we will try to clarify with an example.
Karin and Adam together bought a home in 2004 with a mortgage and home acquisition debt of € 250,000. This mortgage is fully redemption-free. Karin would like to take over the home and mortgage. For the sake of convenience, we make the assumption that there is no surplus value. Karin is allowed to continue part of the redemption allowance. They may only have a 50% interest-only mortgage and for the other 50% they must choose an annuity mortgage or a linear mortgage.
The reason for this is that on 1 January 2013 the loan rules for mortgages have been tightened up. This was part of a package of government cuts. New buyers must do as much as possible on repaying a mortgage and also pay it off on the basis of minimal annuities. Since Karin ‘buys’ a part of the house in the example, she also has to deal with these new loan rules. That is if she wishes to qualify for the interest deduction.
Your bank does not agree with taking over the mortgage
If you rely on this outcome, you should sell the property or, together with your former partner, decide to leave the situation as it is. Better you can try to make these agreements during the separation procedure. After all, these scenarios can be foreseen or conceived and then it is clear to everyone what the final agreements are.
When you or your ex-partner remain in the mortgage deed, this may cause problems when buying the next home or applying for a loan. You will also remain responsible and severally liable for repayment of this mortgage in such a situation.
Do you want a second opinion from another lender, we can help you with that. Then make an appointment or call us directly.
What documents are needed to take over the mortgage after my divorce?
If you choose to take over the existing mortgage, an extensive set of documents is required. In most cases, the divorce creates a tighter disposable income. This has an effect on the maximum mortgage. In order to have a good chance to take over the existing mortgage, it is important that you think about the affordability of your expenses yourself.
To give this hand and foot, you can draw up personal budget advice on the Nibud website. This gives you a good impression of the actual expenses and disposable income.
The following documents are often necessary to collect:
Divorce Agreement;
Agreements concerning the distribution of assets linked to the mortgage;
Annual statement and/or employer’s declaration of income;
Statement and quotation of the current mortgage.
Take over a mortgage with NHG after divorce
If you have taken out a mortgage with a National Mortgage Guarantee at the time, specific rules apply.
The attached process card shows the procedure for converting your mortgage with NHG into a single name or when the sale of the property is the order.
Response within 24 hours.
Often sooner.
We work nationwide
Visit at home free of charge.
All your information is 100% safe and secure.
We care about your privacy.
For having an indication of your future mortgage payments please contact us.
Buying a house in the Netherlands and need for a mortgage? We’re specialists in expat mortgages and can find the best Dutch mortgage for you, hassle-free.
Expat financial advisor
Evening appointments? No problem at all. We understand that you have a busy life. You can call, e-mail, Whatsapp us seven days a week between 8:30 am and 9 pm for financial advice or real estate services for your new house. We can discuss how much you can borrow and find the best mortgage solution for your dream house.
We understand your specific needs and have a good track record. Also we are familiair with the specifics regarding the 30% ruling.
Experience of Lin with our mortgage and buying serice
The advisor is very professional and very efficient. We have met 3 agents before him and we’re not so happy about them, a friend of ours recommended him to us. Since then it has been a very pleasant and smooth journey. He is also very proactive in helping us to find a good house. In the end, it saved us money and time. Highly recommended. | Read the review on Advieskeuze.nl
Experience of a client
Excellent, quick and efficient service, very knowledgable. They were available to answer all questions, and got us a very good rate. | Read the review on Advieskeuze.nl
Expat mortgage the Netherlands
As experts in expat mortgages and Dutchmen, we all know that the Dutch property landscape is one of the strangest in the world. Most Dutchmen have a strong desire to own their own home. About 60% of the people posses their own home. Then there is the fiscal phenomenon ‘hypotheekrenteaftrek’ (tax deductible interest).
Mortgage rate
The mortgage rate operated by the bank depends on:
The period for which the interest rate is fixed. In this time, how long the time the rate is fixed the higher the interest rate is. It’s also to choose for a mortgage without a fixed rate;
The ratio between the value under foreclosure and the amount of the mortgage loan. The interest margin required by the bank to cover the risk increases in keeping with the percentage of that ratio.
During the crisis certain parts of the country are stagnating in terms of pricing, other areas have seen prices fall. There is still a shortage of housing in most of the large cities such as Amsterdam or The Hague. For some people it’s about securing a future place to live whilst prices are stable, for others it’s a good investment or it’s about buying property in a nation where they understand the process and know that a property owner’s rights are strongly upheld by law.
Expat mortgages special solutions
Whatever reasons you may have for considering the purchase of a house in the Netherlands, the good news is that there are mortgage providers willing to offer expats mortgages. The bad news is that many providers don’t even advertise the fact! More good news: we can assist you by obtaining a mortgage.
Expats package deal?
With our expat package deal, you get your own personal real estate agent who will guide you smoothly through the process of purchasing a house. We will attend the visiting properties you’re interested in and research the house for the conditions of the house, local development plans and more of that is all correct. Our real estate agent will help you make sure everyone else involved in the transaction is doing their job.
What you get with this package deal:
Visits property where you want to make a bid for;
Checks local development plans;
Checks property condition;
Checks leasehold;
Checks environmental issues;
Checks owners association;
Conducts negotiations;
Checks purchase contract conditions;
Checks the notary deeds and final invoice;
Accompanies you to the notary.
Personal mortgage advisor
When you want to apply for a mortgage in the Netherlands, we will assist you during this process of a mortgage application. With a personal mortgage advisor, you can get a few things sorted out such as advice on which mortgage suits your situation best and what sort of insurances you need. But also, a final check if all the paperwork is filled in correctly before heading to the notary. What you get with this package deal:
Investigate your possibilities in getting a mortgage;
Compare all mortgage providers on conditions, products and interest rates;
Advice which mortgage is the best for you;
Mortgage application at any mortgage lender in the Netherlands;
Advice and application of life insurance;
Application for your monthly tax return in the first year of your mortgage;
Application of housing insurances;
Checking notary documents before you sign the owner’s deed and mortgage deed;
Guidance with tax application.
The fixed fee for this package deal is € 4.500 and is tax deductible! The rate after tax refund is approximately € 2.273.
Expat mortgage process
If you’re interested in our services, we charge you fixed fees for our services. Our first meeting is always free of charge an can take place at your home or workplace, also in the evening hours. We work independent and nationwide and have offices in Amsterdam, The Hague, Rotterdam and Breda (Zevenbergen). Our real estate agents can assist you by buying property in the Netherlands. You can request a meeting by sharing your details below, or you may reach us at 0031-168-327702.
We also work independent from financial providers and our financial advisors provide you with personal tailored mortgage advice.
During our first meeting we will ask you to inform us about the following information :
Contact information;
Basic details about the property requiring finance including your required mortgage amount and amount of deposit;
A copy of your passport and a utility bill for your main residence;
Bank statements of the last three months of the bank account where your salary is paid;
The most recent 3 months’ paychecks, alternatively, an employer’s confirmation of income (werkgeversverklaring) or copies of your accounts from a verifiable accountancy firm if you’re self-employed.
As you can imagine, each application is then assessed on its personal merit, and those who lend to expats are aware that it’s not always straightforward to provide seemingly the most basic of information.
Don’t be put off, there is finance available, and the Dutch property market can make a safe bet when approached in a cautious and calculating manner.
Closing costs of buying a house in the Netherlands
What are the costs involved with buying a house in the Netherlands? With this tool, you can get an indication of the closing costs of buying a house or apartment.
Our service
We will find you the most appropriate mortgage provider in the market for your mortgage requirements;
We will present a proposal in a concise and appropriate format to maximise its approval possibilities;
To use our negotiation skills with the mortgage provider to ensure you receive the best terms available;
Tax deduction applications;
LTV (Loan To Value) 100%;
We provide you with all the necessary assistance to purchase, including Dutch tax matters;
Our fee is tax deductible and in most cases VAT-free;
Most important: No cure no pay;
We will accompany you at the appointment with the notary.
How will the mortgage interest in the Netherlands develop in 2018?
Is it wise to extend or adjust your mortgage now, because of the low interest rates? Or is it better to wait?
Will interest rates remain low?
You should benefit as much as possible from low mortgage rates. But how long can you extend your current mortgage and enjoy a low monthly amount? Have you recently bought a house, then you have already benefited considerably from the low mortgage rates. But if your mortgage has been running for ten or twenty years, it is a different story.
How long does this interest rate last?
If we knew it, we would tell you right away of course. Still, we can assume that interest rates will remain low because the European Central Bank runs a stimulation program called QE which provides a lot of money in the economy. This program quits by the end of 2019. Because the economy is growing considerably, the expectation is that interest will only start to rise from the summer of 2019. The mortgage rates will follow the financial markets.
Actual interest rates (May 22, 2019)
Finance with 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 an 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 with NHG is € 290.000. Other conditions of this program.
Have a question?
For having an indication of your future mortgage payments please contact us.
Hassle free all the way.
We deal with banks on your behalf, all the way through until 100% completion.
Our dedicated mortgage advisors in The Hague can help you make sure you never pay more than you need to for your mortgage.
Buying a house for the first time in The Hague as an expat
With help from our office, we can make the complete mortgage process as clear and uncomplicated as possible. Buying your first home in The Hague as an expat 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 office specializes 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:
We are committed to providing an excellent level of service. Many of our clients come from abroad. Recommendations to friends, family and colleagues and can be anywhere in The Hague. We work nationwide and therefore we provide mortgage advice over the phone, by e-mail or in person.
It is also possible to have some kind of pre-approval if you are house hunting and already have the necessary documents handy.
Experience of Lin with our mortgage and buying serice
The advisor is very professional and very efficient. We have met 3 agents before him and we’re not so happy about them, a friend of ours recommended him to us. Since then it has been a very pleasant and smooth journey. He is also very proactive in helping us to find a good house. In the end, it saved us money and time. Highly recommended. | Read the review on Advieskeuze.nl
Experience of a client
Excellent, quick and efficient service, very knowledgable. They were available to answer all questions, and got us a very good rate. | Read the review on Advieskeuze.nl
How to save time in the mortgage process?
To get a head-start in buying your house you can gather all your documents. If you have most of the necessary documents complete it will save yourself a great amount of time.
The documents you need to collect will detail the following points :
Information about your earnings (copy salary slip and employer’s statement);
Copy of your passport and residence card;
Information about your debt and assets;
Homeownership history in the Netherlands.
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 calling in your employer’s statement.
Need mortgage advice in The Hague? We are glad to assist you!
Want to live in the wonderful famous Dutch city of The Hague? Not surprising of course, because there is so much to see and do in The Hague. For instance the impressive Rijksmuseum or the beautiful canals. Perhaps you need to adjust to the overwhelming presence of bikes!
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 specialized mortgage advice.
Our highly educated mortgage advisors will give you more than appropriate mortgage advice in The Hague. We love The Hague as well. Book an initial, free of charge, telephone consultation with one of our mortgage advisors right now!
The housing market in The Hague
The housing market is going through extraordinary times in The Hague. A house with a garden is becoming scarce and the prices are going through the roof. Without guidance is it very hard to get hold of a house in the capital city of the Netherlands.
The Hague, with its beautiful Binnenhof and beach of Scheveningen, has a lasting appeal on a large group of people. Expats often choose to live in The Hague compared to other cities because of its favorable establishment environment.
There are some typical characteristics worth noticing in the housing market of The Hague:
Some of the ground belongs to the municipality and you have 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;
There is a unique mannerism to bid on a house in The Hague.
Mortgage advice on making an offer with or without ‘subject to finance’ in The Hague
Any person currently looking for a home to buy in The Hague knows that offers are frequently made without a resolutive condition. Also known as a finance clause. This clause gives you time to organize 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 to 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.
Code of conduct for mortgage loans
Lending institutions such as banks and other mortgage providers are bound by a code of conduct in relation to mortgages. In Dutch this code of conduct is known as Gedragscode Hypothecaire Financiering. The current version of the governments Code of Conduct for mortgage loans came into effect in 2011. The code of conduct applies to mortgages on primary residences only.
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?
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 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.
It also depends on the status of your residence card. We can inform you during a personal meeting about the possibilities.
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/Ph.D. 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 the interest if you repay the loan in monthly installments. 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.
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.
Why use a mortgage advisor? – Pros & Cons
As a go-between for borrowers and lenders, mortgage advisors can be very useful if you aren’t confident in your understanding of finance or mortgaging. Hiring an advisor can be an excellent way of finding the best value home loan given your personal circumstances – just make sure you select your advisor carefully!
For some people, using a mortgage advisor can be a great move for your financial situation, but carefully consider the pros and cons and check that the advisor you choose has the qualifications and experience necessary to find you the best product they can.
Pros of using a mortgage advisor
A mortgage advisor can potentially be an invaluable resource for those with a poor understanding of the finance and mortgage industry or their own financial affairs;
An advisor may be able to find you a mortgage that’s better for your individual situation and affairs;
If you don’t have the time to do the extensive research required to properly assess the variety of home loan products available to you, a mortgage advisor can do this for you (within the panel of products they sell).
Cons of using a mortgage advisor
Mortgage advisors with a small product range of lenders are not wise to choose. This may not give you a fair idea of the range of products that are suitable for you;
Educational qualifications and industry experience can differ widely between advisors, so make sure to inquire about this before you engage the services of any mortgage advisor.
Response within 24 hours.
Often sooner.
We work nationwide
Visit at home free of charge.
All your information is 100% safe and secure.
We care about your privacy.
For having an indication of your future mortgage payments please contact us.
Our mortgage advisors in Eindhoven can help you find the best mortgage solution and make sure you never pay more than you need to for your mortgage. Mortgage advice Eindhoven for your future home and hassle free!
Buying a house for the first time in Eindhoven as an expat
With help from our office, we can make the complete mortgage process as clear and uncomplicated as possible. Buying your first home in Eindhoven 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 specializes 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:
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 Eindhoven. We work nationwide and therefore we provide mortgage advice over the phone, by e-mail or in person.
Experience of Lin with our mortgage and buying serice
The advisor is very professional and very efficient. We have met 3 agents before him and we’re not so happy about them, a friend of ours recommended him to us. Since then it has been a very pleasant and smooth journey. He is also very proactive in helping us to find a good house. In the end, it saved us money and time. Highly recommended. | Read the review on Advieskeuze.nl
Experience of a client
Excellent, quick and efficient service, very knowledgable. They were available to answer all questions, and got us a very good rate. | Read the review on Advieskeuze.nl
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 calling in your employer’s statement.
The housing market in Eindhoven
The housing market is going through extraordinary times in Eindhoven. A house with a garden is becoming scarce and the prices are going through the roof. Without guidance is it very hard to get hold of a house in the capital city of the Netherlands.
Eindhoven, with it is industrial heritage, has a lasting appeal on a large group of people. Expats often choose to live in Eindhoven compared to other cities because of its favorable establishment environment. Also, Eindhoven is called the Silicon Valley of the Netherlands.
There are some typical characteristics worth noticing in the housing market of Eindhoven:
A lot of the apartments have an owners’ association.
There is a unique mannerism to bid on a house in Eindhoven.
Should I keep renting or buy a property in the Eindhoven area?
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 Eindhoven, 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 Eindhoven the average was € 1,650 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?
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 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/Ph.D. 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.
Large companies Eindhoven area
We help all expats in the Eindhoven region. The larger employers for expats in the Eindhoven region are ASML and Philips.
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 the interest if you repay the loan in monthly installments. 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.
Taking out a mortgage as an entrepreneur in Eindhoven
Starting a business or already having a business and buying a house in Eindhoven? 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 inquiries 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 prioritize, 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 standardized 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 into 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 business 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 your mortgage?
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.
Have a question?
For having an indication of your future mortgage payments please contact us.
Our mortgage advisors in Utrecht can help you make sure you never pay more than you need to for your mortgage.
Cournot Adviseurs offers a unique blend of low interest rates and elite customer service. We strive to offer each client the best service possible.
The entire mortgage process can be handled online, in person, over-the-phone, or using a combination of other digital mediums. We provide each client completely bespoke mortgage advice tailored to your particular needs and circumstances.
Buying a house for the first time in Utrecht
With help from our firm, we can make the complete mortgage process as clear and uncomplicated as possible. Buying your first home in Utrecht 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 specializes 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:
We are committed to providing an excellent level of service. Many of our clients come from abroad. Recommendations to friends, family, and colleagues and can be anywhere in Utrecht. 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 calling in your employer’s statement.
Need mortgage advice in Utrecht? We are glad to assist you!
Want to live in the wonderful famous Dutch city of Utrecht? Not surprising of course, because there is so much to see and do in Utrecht. For instance the large Euromast or the beautiful Erasmusbrug. Want to have a look in the impressive harbor of Utrecht? 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 specialized mortgage advice.
Our highly educated mortgage advisors will give you more than appropriate mortgage advice in Utrecht. We love Utrecht as well. Book an initial, free of charge, telephone consultation with one of our mortgage advisors right now!
The housing market in Utrecht
The housing market is going through extraordinary times in Utrecht. Especially within the center 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.
Utrecht, with its extraordinary port, has a lasting appeal on a large group of people. Expats often choose to live in Utrecht compared to other cities because of its no-nonsense mentality of its residents.
There are some typical characteristics worth noticing in the housing market of Utrecht:
Some of the ground belongs to the municipality and you have 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 Utrecht
Any person currently looking for a home to buy in Utrecht knows that offers are frequently made without a resolutive condition. Also known as a finance clause. This clause gives you time to organize 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 to 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 Utrecht 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 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/Ph.D. 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 the interest if you repay the loan in monthly installments. 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 an 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 with NHG is € 265.000. Other conditions of this program.
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.
Response within 24 hours.
Often sooner.
We work nationwide
Visit at home free of charge.
All your information is 100% safe and secure.
We care about your privacy.
For having an indication of your future mortgage payments please contact us.
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:
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.
Response within 24 hours.
Often sooner.
We work nationwide
Visit at home free of charge.
All your information is 100% safe and secure.
We care about your privacy.
For having an indication of your future mortgage payments please contact us.
Our mortgage advisors in Amsterdam can help you make sure you never pay more than you need to for your mortgage. Mortgage advice Amsterdam by dedicated financial advisors.
Buying a house for the first time in Amsterdam
With help from our firm we can make the complete mortgage process as clear and uncomplicated as possible. Buying your first home in Amsterdam 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 specializes 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:
We are committed to providing an excellent level of service. Many of our clients come from abroad. Recommendations to friends, family, and colleagues and can be anywhere in Amsterdam. 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 calling in your employer’s statement.
Need mortgage advice in Amsterdam? We are glad to assist you!
Want to live in the wonderful famous Dutch city of Amsterdam? Not surprising of course, because there is so much to see and do in Amsterdam. For instance the impressive Rijksmuseum or the beautiful canals. Perhaps you need to adjust to the overwhelming presence of bikes!
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 specialized mortgage advice.
Our highly educated mortgage advisors will give you more than appropriate mortgage advice in Amsterdam. We love Amsterdam as well. Book an initial, free of charge, telephone consultation with one of our mortgage advisors right now!
The housing market in Amsterdam
The housing market is going through extraordinary times in Amsterdam. A house with a garden is becoming scarce and the prices are going through the roof. Without guidance is it very hard to get hold of a house in the capital city of the Netherlands.
Amsterdam, with its extraordinary canals, has a lasting appeal on a large group of people. Expats often choose to live in Amsterdam compared to other cities because of its favorable establishment environment.
There are some typical characteristics worth noticing in the housing market of Amsterdam:
Some of the ground belongs to the municipality and you have it on a long lease. In short, this means you pay reimbursement to the local authorities.
A lot of the apartments have an owners’ association.
There is a unique mannerism to bid on a house in Amsterdam.
The notary prepares a concept purchase agreement and invites the parties involved in the process to sign the document at his or her office.
Mortgage advice on making an offer with or without ‘subject to finance’ in Amsterdam
Any person currently looking for a home to buy in Amsterdam knows that offers are frequently made without a resolutive condition. Also known as a finance clause. This clause gives you time to organize 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 to 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?
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 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/Ph.D. 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 the interest if you repay the loan in monthly installments. 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.
Code of conduct for mortgage loans
Lending institutions such as banks and other mortgage providers are bound by a code of conduct in relation to mortgages. In Dutch, this code of conduct is known as Gedragscode Hypothecaire Financiering. The current version of the governments Code of Conduct for mortgage loans came into effect in 2011. The code of conduct applies to mortgages on primary residences only.
Actual interest rates (September, 25th 2018)
What is National Mortgage Guarantee (in Dutch called 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 an 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 with NHG is € 265.000. Other conditions of this program.
Taking out a mortgage as an entrepreneur
Starting a business or already having one and buying a house in Amsterdam or elsewhere 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 inquiries 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 prioritize, 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 standardized 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 into 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 business 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 am I obliged to repay my loan?
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.
Response within 24 hours.
Often sooner.
We work nationwide
Visit at home free of charge.
All your information is 100% safe and secure.
We care about your privacy.
For having an indication of your future mortgage payments please contact us.
You want to buy a house in the Netherlands or improve your current mortgage? Apparently it’s nearly impossible for expats living in the Netherlands to get mortgages to buy Dutch property? We provide mortgage advice for you as expat!
Well, actually, the headlines are not entirely true! What is correct is that most of the mortgage providers have been forced to tighten their procedures since the crisis. But the fact of the matter is, there are still mortgage providers out there looking to do business with trustworthy clients.
Mortgage advice expat the Netherlands
As experts in expat mortgages and Dutchmen, we all know that the Dutch property landscape is one of the strangest in the world. Most Dutchmen have a strong desire to own their own home. About 60% of the people posses their own home. Then there is the fiscal phenomenon ‘hypotheekrenteaftrek’ (tax deductible interest).
Only comparing interest rates is apples to oranges. We help you see the big picture.
Mortgage rate
The mortgage rate operated by the bank depends on:
The period for which the interest rate is fixed. In this time, how longer the time the rate is fixed the higher the interest rate is. It’s also to choose for a mortgage without a fixed rate;
The ratio between the value under foreclosure and the amount of the mortgage loan. The interest margin required by the bank to cover the risk increases in keeping with the percentage of that ratio.
During the crisis certain parts of the country are stagnating in terms of pricing, other areas have seen prices fall. There is still a shortage of housing in most of the large cities such as Amsterdam or The Hague. For some people it’s about securing a future place to live whilst prices are stable, for others it’s a good investment or it’s about buying property in a nation where they understand the process and know that a property owner’s rights are strongly upheld by law.
Expat mortgages special solutions
Whatever reasons you may have for considering the purchase of a house in the Netherlands, the good news is that there are mortgage providers willing to offer expats mortgages. The bad news is that many providers don’t even advertise the fact! More good news : we can assist you by obtaining a mortgage.
Expat mortgage process
If you’re interested in our services, we charge you fixed fees for our services. Our first meeting is always free of charge an can take place at your home or workplace, also in the evening hours. We work indepent and nationwide and have offices in Amsterdam, The Hague and Breda (Zevenbergen). Our real estate agents can assist you by buying property in the Netherlands. You can request for a meeting by sharing your details below, or you may reach us at 0031-88-2687668.
We also work indepent from financial providers and our financial mortgage advisors provide you personal tailored mortgage advice.
During our first meeting we will ask you to inform us about the following information :
Contact information;
Basic details about the property requiring finance including your required mortgage amount and amount of deposit;
A copy of your passport and a utility bill for your main residence;
Bank statements of the last three months of the bankaccount where your salary is paid;
The most recent 3 months’ pay checks, alternatively, an employer’s confirmation of income (werkgeversverklaring) or copies of your accounts from a verifiable accountancy firm if you’re self-employed.
As you can imagine, each application is then assessed on its personal merit, and those who lend to expats are aware that it’s not always straightforward to provide seemingly the most basic of information.
Don’t be put off, there is finance available, and the Dutch property market can make a safe bet when approached in a cautious and calculating manner.
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 with NHG is € 265.000 in 2018.
How to obtain your first mortgage in the Netherlands
The first step can be to find out how much money you can borrow. The main barricade many expat buyers come up against is finding money for the closing costs and apply for a 100% mortgage.
Having a small deposit can restrict the number of mortgages available to you, but there are first time buyer mortgage schemes which your mortgage adviser can discuss with you.
Following this, the next step is to get yourself mortgage ready. With more stringent affordability testing from the lender, it’s important that your income documents are in order.
Code of conduct for mortgage loans
Lending institutions such as banks and other mortgage providers are bound by a code of conduct in relation to mortgages. In Dutch this code of conduct is known as Gedragscode Hypothecaire Financiering. The current version of the governments Code of Conduct for mortgage loans came into effect in 2011. The code of conduct applies to mortgages on primary residences only.
Our mortgage advisers
Our professional mortgage advisers are experts when it comes to arranging expat buyer mortgages. With access to over hundreds mortgages from over 40 lenders, we are perfectly committed to help you find the right mortgage and get you a foot on the property ladder. We will be on hand to guide you through the whole process, right up until the day you get the keys in your hand.
Whether you prefer a face to face or telephone appointment, we will offer the same expat mortgage service. Our mortgage advisers will take into consideration your personal circumstances, including your income and other relevant information. All of this helps us build a picture of your financial situation and can help us recommend a mortgage deal that is right for you.
Taking out a mortgage as an entrepreneur
Starting a 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.
Mortgage takeover after divorce – How does it work?
