Tag: netherlands

home inspection netherlandsMore information?

 

Technical inspection report in English

For expats we can organise a technical inspection report for buying a house in the Netherlands. Also called a home inspection. This report is written in English. Buying a house in Amsterdam, Rotterdam or The Hague? Our inspection company works nationwide and in some parts of Belgium.

Why should I want a building inspection report?

Basically because you’re taking a huge risk if you don’t. An inspection may reveal hidden structural problems that you might not see with the untrained eye.

If you don’t organise a pre-purchase inspection, and you find out later that your property is having a lot of problems, you’ll be responsible to fix those faults. That can result in a large gap in your saving account.

This technical inspection provides you information regarding the technical condition of the house and it’s structures. This assessment will also prevent you from shortcomings and defects.

To give you the service you really need when buying a house, our inspection company has developed an English technical inspection report. In most cases they can also provide an inspector with good knowledge of the English language, so that you can easily communicate and ask questions during the inspection of your new property.

We also have people at our office who speak English very well, so feel free to call us when you have any questions according to structural problems with any kind of property.

Our clients are encouraged to join the inspector during the inspection. It enables you to ask questions about the property and try to discover whether a crack in the wall is nostalgia or a serious structural defect.

Do you work nationwide?
We work nationwide and have inspections done at the following cities : Amsterdam; The Hague; Rotterdam; Utrecht.

Also we work in Belgium. We are active especially around the border areas and in Flanders. Outside of these places you can ask us if there are possibilities.

Old electrics
It was customary to have cotton casings around the electric wires. This situation creates a fire hazard. A faulty connection can also lead to a fire hazard. An inspector also tests sample sockets and the meter cupboard.
Plumbing defects
It’s a common problem with old houses, since there’s a expiration date for pipes. The older the building is, the higher risk that the network is faulty, leaky and smelly. This can lead to damp, burst, structural problems, less water pressure and rat infestation. Be specially observant when visiting an old apartment building, since even if you spend the money to repair it, there’s a chance that the whole place has an old network and the quality of your water may suffer from it. Avoid buying a money pit.
Is this construction report NHG-proof?
This inspection is also approved for mortgages with NHG. All lenders in the Netherlands accept this report.

What can you expect of our technical inspection and inspection report?

Our technical inspection is a limited, non-invasive examination of the condition of a home. Our technical inspections are conducted by an inspector. This inspector has the training and certifications to perform this kind of inspections. Our inspectors prepare and deliver you a complete and extensive report of their findings. You can use this knowledge to make the right decisions about your real estate purchase.

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

Don’t buy a pig in a poke and invest in a technical inspection

The inspection will include the evaluation of the visible and accessible elements of the home including:

  • Foundation, crawlspace and the condition of floors;
  • Sewer, ventilation, plumbing;
  • Floors, walls, maintenance, masonry and constructional elements;
  • Moisture measurement;
  • Roof, tiles, gutters, zinc and chimney;
  • Roofing and Roof construction;
  • Facade, cousins, windows, glass, doors, etc;
  • Visual review of the central heating system and its components;
  • Visual review electrical system and its components;
  • Visual review maintenance kitchen;
  • Visual review sanitary;
  • Lead water pipes.

Request a home inspection


Video technical inspection report

You will get your report within 48 hours

During the inspection we can give you an impression of the condition of the property. The official report of the inspection will be ready within 48 hours after the inspection. We will send the offical report by e-mail and by post.

A technical inspection is a visual and non-destructive inspection. If we find asbestos during the inspection, we will mention this in the report. Looking for the presence of asbestos is not an officially part of the technical inspection.

The technical inspection cost € 420 including VAT. We offer an official certified asbestos inspection at the same time as the home inspection for an extra cost of € 59,00 including VAT.

Any questions? Feel free to contact us.

Mortgage advice for expats
Mortgage advice for expats.
Real estate buying service
We work with fixed affordable rates and we will work with you to your dream house purchase!

Request a home inspection


Mortgage for expats

Interested in buying a house in the Netherlands, in Amsterdam for example? Our financial advisors can help you selecting and closing the best mortgage with lowest interest rates. We also can help you with improving your existing mortgage.

Do you want to learn more about the possibilities for obtaining a mortgage?

Our orientation meeting is free of charge and can be at your place.

buy to let expat mortgage

Opportunities to take out a buy-to-let mortgage

Apartments and residencies are considered interesting investments and expats often contact us to ask if it is possible for them to buy a property to let. In the beginning expats were only eligible for a buy-to-let mortgage after residing in the Netherlands for at least three years. There are new parties that have less demanding rules for expats looking for a buy-to-let mortgage.

A good investment

Buying property to let out is a good investment because of the rental income, but also because an increase in property value can be expected in the future. The Dutch housing market has an excellent reputation. If you have sufficient funds you can buy property with your own money. Another option is to leverage a large part of the purchase price and use your own funds to finance the rest of the purchase. Normally the annual rental value exceeds the cost of a mortgage, as the largest part of a mortgage is interest-only.

Requirements for a buy-to-let mortgage

The following conditions apply:

  • Expats are required to reside in the Netherlands on a non-temporary basis, for example as a knowledge migrant (highly skilled migrant) or for an indefinite period of time.
  • Box 1 income, no minimum gross income.
  • It is possible to finance up to 80 percent loan-to-value, with a maximum of 60 percent interest only.
  • A mortgage can be requested when the conditions above are met. The buy-to-let mortgage can only be used for long-term rental. Airbnb and any other short-term rental constructions are not allowed.
  • The bank has a policy that allows financing houses in the larger cities only.

Mortgage types

There is an interest only mortgage with a maximum duration of 30 years, it is for when you finance up to 60 percent of the property value. If you need to finance more than 60 percent the remainder must consist of a linear mortgage. This type needs to be repaid on a straight-line basis within 10 years. This mortgage can be repaid in part or full anytime within 10 years without a fine.

Additionally, the rental income needs to exceed the interest and repayment based on a ratio of 1.25. This means that the rental value must be 1.25 times the sum of the interest and repayment of the first year. If you already receive income by letting out property this ratio decreases to 1.05.

Tax consequences

In the Netherlands rental properties are considered your capital, which is taxed in Box 3. The rent you receive is not taxed directly. There are different brackets in this box depending on the total value of your possessions. You can find the tax levy concerning your total capital for 2018 down below.

Initial costs

You need to add additional closing costs, such as the transfer tax and notary costs, to the purchase price of your apartment. When the property costs €290.000 the total cost will be approximately €315.000 and at that point the apartment is not out for rent yet.

Real estate appraisal

The bank requires a valuation report and the value of the apartment for rent is €255.000. you can request up to 80 percent of the property value which means that the maximum mortgage you can request is €204.000. You need €71.000 in savings.

Calculate net rent

The rent is estimated €15.500 a year. The costs of a landlord are estimated at €2.500 annually which means that the net rent will come to €13.000 a year. In relation to the net rent the first year mortgage interest and repayment should not exceed €10.400. this is the net rent divided by the ratio of 1.25 or 1.05, depending on if you already rent out property.

Rent compared with costs

Assuming the interest rate is 4,5 percent, a mortgage of 80 percent of the market value is too high to meet the 1.25 ratio. This means that you have to slightly lower the mortgage. However, this example meets the 1.05 criteria, since a maximum mortgage cost of €12.380 would be possible. In this case you already need to rent out property.

Revise the financial structure

If this is your first buy-to-let apartment the appropriate financial structure for a property with a total cost of €275.000 would be: a mortgage of €191.250 (75 percent loan-to-value) and a contribution of €12.380 from your own funds.

A worthwhile investment

Whether buying property to let is a good investment depends on whether you can meet the mortgage conditions, how much savings you have available and if you are prepared to take on the financial management that is required.

If you are prepared to invest for the long term, a buy-to-let apartment can often turn out to be quite a profitable venture.

To determine your budget and later on in the mortgage application we need the following information:

  • Information about you personally
  • Information about existing mortgage(s) and personal loans
  • Information about the property you wish to let
  • Information to substantiate your financial position

Required information about you personally

  • A copy of your passport
  • A copy of your permit of residence

Required information about existing mortgage(s) and or/personal loan(s)

  • A copy of the current loan agreement contract
  • Recent statement of assets and liabilities
  • Recent statement of the property value

Required information about the property

  • A copy of the purchase agreement (signed by both parties)
  • Original valuation report
  • Structural survey report (when required)

Required information to substantiate your financial position

  • Employer’s statement: a statement provided by your employer confirming your annual income based on salary, bonuses and fringe benefits.
  • Salary specification: your monthly pay slip has to correspond with the employer’s statement.
  • Statements of your savings account, loans, investment portfolios and property owned outside of the Netherlands.
  • Confirmation of the tax department’s granting of the 30% ruling if you applied for this.


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mortgage takeover after divorceMortgage 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 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.

If you or your ex-partner remain in the mortgage deed, this may cause problems when buying a next home or applying for a loan. You will also remain responsible and severally liable for repayment of this mortgage in such a situation.

If 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 a personal budget advice on the Nibud website. This gives you a good impression of the actual expenses and the 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 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.


picture the netherlandsFree consultation?

To help you in this process of finding the best mortgage solution you can read the most frequent questions for mortgage advisors our company handles.

We also work for expats and foreigners finding the best mortgage in the Netherlands. Only comparing interest rates in today’s world seems simple. But do you service your car yourself, or do you hire a trained mechanic? When it comes to finding the best mortgage many believe ‘servicing’ on their own fits best.

We believe choosing one of the most important financial decisions a person makes in their life, makes sense to speak to a professional mortgage advisor.

What is the difference between working with a bank directly and working with an independent mortgage advisor?

A bank works directly with you and only offers mortgage products from the bank itself. An independent mortgage advisor provides a complete range of mortgages of the entire market. However, your mortgage advisor also arranges mortgages from a selection of preferred lenders.

In the Dutch system the mortgage advisor is obliged to inform you about their status. Whether they are part of a bank or have a selection of mortgage lenders and products.

In our case we are an independent company and advise mortgages from approximately 40 lenders. We do not accept fees from lenders and work exclusively on the principle of neutrality and independency. We work nationwide.

Can I get pre-qualified for a mortgage?

The system for mortgages in the Netherlands is not designed for pre-qualification. However, our mortgage advisors can perform a quick scan regarding your mortgage application. In this part of the process you provide us with the following information: your name, current address, date of birth, income and assets, and other property owned.

We can also authorize a credit check, which is the only outside source of information that is checked at this point in the process.

With this information you are better prepared to buy a house. If you plan viewings for houses you do not have to provide this information with the real estate broker.

Which is better—an adjustable-rate mortgage or a fixed rate mortgage?

This depends on your budget and how long you think you’re going to live there. If you knew you were going to move within five years, you might want to take an  adjustable interest rate. On the other hand, you might not.

Five years goes by quickly. The market could change and you might be in a different financial situation.

Can I take cash out when I refinance?

If it is your primary residence, most lenders will allow you to take cash out (subject to your banks approval) for any reason, such as renovation, debt consolidation, college tuition, or the purchase of a second home.

Lending guidelines and rates will differ from lender to lender.

How much are closing costs?

In the Netherlands for buying an existing house you need to calculate approximately 5% of closing costs.

With this calculator you will have a good impression of the real closing costs for buying a house in the Netherlands.

Am I allowed to make partial repayments of capital or increase my monthly repayments if I wish to repay the mortgage earlier?

Ask what conditions will apply if you wish to pay off part of the mortgage or accelerate your repayments.

Are there any penalties for repaying the mortgage early?

That depends on several factors. If the interest rate of your current contract is higher then the market interest rate there is good chance you have to pay a penaltie. In most cases this penaltie is tax deductible.

Will you be able to assist me in the future?

It is very likely that you will want to assess the performance of your mortgage every few years. It may be that the amount you are paying back increases down the line, or it could transpire that, since taking out your initial mortgage, a better option has become available. Your mortgage will continue to play a significant role in your finances for decades, so setting up regular appointments with a trusted professional could benefit you greatly.

Is there an arrangement fee to pay and if so will I get this back if my application does not proceed?

We provide your mortgage advise on no cure no pay base. We only charge you the fee on the same moment as your mortgage will be provided by the lender.

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.


 

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 a go 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 nation wide 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 tax payers in the Netherlands). In early years of the mortgage term the annuities mortgage results in lower monthly payment than a linear mortgage.

Lineair 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, the monthly mortgage payments are relatively high in the beginning.

If you are a tax payer, 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 a 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.

Guranteed 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.


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closing costs buying houseThe following taxes and closings costs buying a house you will experience by buying a house in the Netherlands.

Transfer tax (Overdrachtsbelasting)

– 2% of the purchase price for a house

Pre-sale agreement (Koopovereenkomst)

– The real estate broker of the seller will create this pre-sale agreement without any charge for the buyer.
– In the Amsterdam market the notary will make this agreement and will charge the buyer. This is negotiable.

Transfer contract (Akte van levering)

– This is the formal contract which the notary will make. The average rate is about € 600 including VAT.
– Negotiable, you can compare these rates.

Mortgage arranging cost (advieskosten)

– Rates start at € 1.500 till € 4.000.
– In most cases there is no VAT to pay.

Mortgage contract (Hypotheekakte)

– The notary is obliged to handle this contract. The average rate is also € 600 including VAT.
– Tax deductible.

Interpreter

– The costs of a interpreter start at € 200 including VAT.

Estate agent fee (Makelaarscourtage)

– 1,75% (plus BTW) of the purchase price.
– The seller pays the estate agent. If you use an estate agent to help you buying a house (aankoopmakelaar) rates start at € 1.750.

Appraisal (Taxatierapport)

– Prices start at € 300 including VAT.

– In case you have a mortgage with NHG you need a so called NWWI validation it wil cost additional €75.

– Tax deductible and negotiable.

Architectural examination / home inspection (bouwkundig keuringsrapport)

– Prices start at € 420 including VAT.

– This document is not obliged but gives you information about the technical state of the house you want to buy.

Deemed rental value (Eigenwoningforfait)

– 0,7% of the WOZ value (determined by the government)

Tax implications

– Mortgage interest payments are tax deductible as long as the property / house is to be used as the main residence for a maximum of 30 years.

– Tax deductions automatically disappear if you decide to leave the country but continue to own the property. As a non-resident taxpayer, you will not enjoy tax deductible mortgage interest payments so make sure the rent you receive covers both costs and interest.

– Increases in the value of the house are tax-free as long as it is used as the main residence (no capital gains tax).

– The 30% ruling may raise your chances of getting an appealing mortgage deal.

More information about our services? For example we can help you take out a mortgage. Advice by independent mortgage advisors.


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Actual interest rates (September, 25th 2018)