Tag: mortgage

expat mortgage netherlandsFree consultation?

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.

Other conditions of this program.

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.

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;
  • Home inspection with report in English? Available within 48 hours.
  • Tax deduction applications;
  • LTV (Loan To Value) 100%;
  • We provide you 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.
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.


Current mortgage rates

Mortgage quotation?refinance mortgage

Perhaps you closed your mortgage a few years ago for a ‘high’ interest rate compared to the current interest rates. How can you profit from the current low mortgage interest rates? It is possible to ask your bank to ‘moderate’ the interest rate, in Dutch this is called ‘rentemiddeling‘.

Also, you can refinance your complete mortgage. Perhaps you have expensive life insurances connected to your mortgage so by refinancing you can fresh up your mortgage and save money by having a more profitable mortgage type.

Mortgage advice visit at home

We can help you by researching the best solution for you. We work nationwide and can visit you at home or at the office on a time that fits you best, also during the evening hours.

Different mortgage types

The mortgage type that suits your situation best depends on your personal circumstances and lifestyle. Banks offer a large variety of different mortgage types, but there are three basic models. When taking out a loan, eventually you have to repay the actual loan, plus in the meantime, you also pay the interest. In some mortgage models, you start repayment of the actual capital from the outset, usually over a long period, say 30 years, whilst also paying interest on the loan. In some other mortgage types, you postpone the repayment portion of the loan, solely paying the interest on it on a regular basis.

There are two capital repayment models: the annuities mortgage and the so-called linear mortgage.

Annuities mortgage

With an annuities mortgage, you repay the capital plus interest. The characteristic of an annuities mortgage is that in early years you pay a lot of interest and you repay little capital. Towards the end of the mortgage term, this turns the other way round, paying off more capital and hence less interest.

Another characteristic is that with an annuities mortgage you make fixed monthly payments during the mortgage term. (Except of course that the payments may be affected by changes in mortgage interest rates).

Due to the redemption (ie the paying-off of the mortgage), the mortgage debt decreases and you pay less and less interest as time goes on. This means, however, that your net housing costs will increase a little since only the interest on the loan is tax deductible (for those of you who are taxpayers in the Netherlands). In the early years of the mortgage term the annuities mortgage results in lower monthly payment than a linear mortgage.

Linear mortgage

The linear mortgage, you start to repay the mortgage loan by a fixed amount every month. On top of this, you pay interest, but the interest payments will reduce over time since you are gradually redeeming the mortgage loan. Since the mortgage amount will actually decrease, so will your interest payments.

A linear mortgage can be useful for people who wish to repay their mortgage as quickly as possible and who are expecting a decrease in income sometime in the future. However, monthly mortgage payments are relatively high in the beginning.

If you are a taxpayer, this is not an ideal mortgage model either, since you will not be taking full advantage of the tax deductibility of mortgage interest.

Interest only mortgage

The interest only mortgage. There are circumstances whereby the bank will actually allow you to just pay interest and repay the capital from savings or investment accounts, giving their name to various different mortgages types linked to an interest-only loan:

Life insurance mortgage (levenhypotheek): This mortgage is connected to life insurance. The client pays a monthly or an annual premium, which is often invested in a mutual fund. The premium can include life insurance cover. This policy can be tax-free under certain conditions (rather than being taxed in box III at 1,2%).

Guaranteed life insurance mortgage

Guaranteed life insurance mortgage (spaarhypotheek): This mortgage type is also connected to a life insurance, but with a guaranteed return. The interest you get on your premium is equal to the interest you pay, hence you are 100% sure that your mortgage will be repaid at the end of the mortgage term.

A combination of these two, the hybrid mortgage (hybride hypotheek): With this type, you can switch from a mutual fund with investment risk to a guaranteed return on your money.

Investment account mortgage

Investment account mortgage (beleggingshypotheek): In an investment account mortgage you invest a certain premium into a stock market account (not an insurance!). This premium can be a lump sum, a monthly or an annual premium.

Guaranteed Savings Account mortgage

Guaranteed Savings Account mortgage (bankspaarhypotheek): This type of mortgage offers a high level of security. With a bankspaarhypotheek you will save money at a fixed rate. This rate is equal to the mortgage interest rate, and at the end of the term you will be sure that you have saved enough money to repay the mortgage loan.

Simultaneously you are optimizing your tax break since you are keeping the interest payments constant at their original level. It is also possible to invest rather than save in a bankspaar account, however, there is always some risk involved when investing rather than saving in cash.

More information about refinancing your current mortgage

For more information about refinancing your current mortgage or general information about mortgages please use the form below. Cournot Adviseurs is paid by the client and we do not receive any commission (provisie) from banks or insurance companies. We charge you fixed fees which are in most cases tax deductible.

The exact amount of fee we explain you during a first meeting and depends on what services you wish to use.

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.