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 to find 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. Top 10 questions mortgage advisors in the Netherlands:
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 independence. 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 to 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 go 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 bank’s 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 than the market interest rate there is a good chance you have to pay a penalty. In most cases, this penalty 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 advice on a no cure no pay base. We only charge you the fee at the same moment as your mortgage will be provided by the lender.
For having an indication of your future mortgage payments please contact us.