This page explains what home equity is, how much you may be able to access, and which conditions apply when using it as a non-Dutch national. If your property has increased in value since you bought it, you may be able to release part of that value and use it for renovations, investments, or other financial goals. For expats, the process is often possible, but banks may require additional documentation, especially when income comes from abroad.
Accessing home equity as an expat
Has your home increased in value since you purchased it? If so, you may have home equity, a financial buffer that can be used for renovations, investments, or personal goals. As an expat, it is possible to unlock this equity even if part of your income originates from abroad.
How it works in the Netherlands
Home equity for expats
A simple way to understand the value built up in your home
What is home equity and how can you estimate it?
Home equity is the difference between the current market value of your property and the remaining balance on your mortgage. For example, if your home is worth €500,000 and your outstanding mortgage is €350,000, you may have €150,000 in equity.
You can estimate your home’s value using a professional appraisal or an online valuation tool. Lenders generally require an official valuation before approving an equity withdrawal.
Eligibility criteria and lender requirements explained.
Can expats access equity in a Dutch property?
In many cases, expats can access the equity in their Dutch home under the same general conditions as Dutch nationals. Approval depends on whether you meet the lender’s criteria, such as having sufficient and stable income, an acceptable loan-to-value ratio after the increase and the required documentation.
Additional requirements may apply depending on your nationality and residency status. For example, non-EU passport holders are usually asked to provide proof of lawful residence. Because lender policies can vary, especially when foreign or non-standard income is involved, working with a mortgage advisor can help ensure your situation is assessed fairly and accurately.
Common ways to use your equity
What can the equity be used for?
Dutch lenders generally allow equity to be used for:
- Renovations or home improvements, such as a new kitchen, bathroom, or solar panels.
- Energy-efficiency upgrades.
- Purchasing a second home (including properties abroad).
- Repaying personal debts or loans.
- Investments or education.
Please note that using equity for non-property-related purposes (such as holidays or cars) may affect your eligibility for mortgage interest deduction.
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How lenders determine the available amount
How much equity can be released?
The amount of equity you can release depends on several factors, including the current market value of your home, the maximum loan-to-value ratio applied by the lender, and your borrowing capacity based on income and existing financial obligations.
Your current mortgage terms may also impose certain limitations. In most cases, a new property valuation is required, followed by a full financial reassessment to determine how much equity can be made available.
When a notary visit is required
Do you need to go back to the notary?
Not always. May be you already registered the mortgage security for a higher amount when you took out your current mortgage loan. However, you will likely need to visit a notary if:
- You are switching to a new lender.
- The mortgage increase is more than the registration of current security.
- You are changing the loan structure.
Your mortgage advisor will guide you through the appropriate legal steps.
Ways to release equity
Which mortgage types are suitable?
Home equity can typically be released in several ways. One option is taking out a second mortgage loan alongside your existing mortgage. Another approach is refinancing your current mortgage, which may allow you to adjust the loan amount and terms. In some cases, it is also possible to increase your existing mortgage under the same conditions. Each of these options comes with its own advantages and disadvantages, particularly in terms of flexibility, costs, and interest rates, which makes professional advice important when choosing the most suitable solution.
Key lender requirements
What conditions do banks set?
Typical requirements from Dutch lenders include:
- A clear purpose for the equity release.
- A recent property valuation (not older than six months).
- A maximum loan-to-value ratio, usually between 85% and 100%.
- Verified income and affordability checks.
Lenders may be more cautious if your income is variable, originates from abroad, or is not paid in euros.
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How lenders calculate your maximum mortgage
How is your borrowing capacity determined?
Gross annual income
Dutch lenders start with your gross annual income, including fixed components such as holiday allowance and, depending on the lender, structural bonuses. If you apply together with a partner, both incomes are usually included in the affordability calculation, which can significantly increase borrowing capacity.
Employment contract type
Your contract type affects how predictable your income is in the eyes of the lender. A permanent contract is typically assessed most favorably, while temporary contracts, probation periods, self-employment, or freelance income may require additional proof (for example, income history or employer statements).
Existing debts and financial commitments
Outstanding debts reduce your borrowing capacity because they increase your monthly financial obligations. Lenders factor in commitments such as personal loans, student loans, credit facilities, car leases, and other registered obligations when calculating what you can responsibly afford.
Adjustments for foreign income and currency
If your income is paid (partly or fully) in a foreign currency, lenders often apply a safety margin to reduce currency risk. For example, some lenders calculate based on 90% of your qualifying income after converting it to euros, to protect against exchange rate fluctuations.
Affordability rules
In the Netherlands, mortgage affordability is not only based on the lender’s internal policy. It is also guided by legally prescribed affordability standards, which are updated yearly and are based on Nibud methodologies.
Foreign income: how lenders assess it
Can you access equity if your income comes from abroad?
Yes, it is often possible to access equity even if (part of) your income comes from abroad, although lenders may request additional documentation. Depending on the lender, they may apply a safety margin and calculate with only part of your income (for example, 90%) to reduce the risk of currency fluctuations. Banks can also ask for foreign payslips, tax returns, and supporting employer documentation, and some lenders only accept income from specific countries or from employers they consider reputable.
Please note that not all lenders accept foreign-currency income, which can limit your options.
Tax and legal considerations
Are there any tax or legal implications?
Yes. Using home equity may affect your:
- Eligibility for mortgage interest deduction, depending on how the funds are used.
- Tax reporting obligations, particularly if the funds are transferred abroad.
- Inheritance or capital gains treatment, in specific scenarios.
You should consult a mortgage advisor with tax expertise or a tax advisor who understands both Dutch and international regulations.
Turn your equity into opportunities
Make the most of your home’s value
If your home has increased in value, you may be able to use that equity to support renovations, investments, or greater financial flexibility. When done responsibly, releasing equity can be a smart way to make the most of your property. We guide expats through the process with clear advice and help you find a lender that fits your situation, even when income comes from abroad.
Frequently asked questions about
Accessing home equity
Does releasing equity mean I have to change my mortgage?
No, releasing equity does not always mean you have to change your entire mortgage. If you increase your mortgage with your current lender, you can often add a new loan part while keeping your existing mortgage and interest rate unchanged. However, if you refinance or switch lenders, you will receive a new mortgage with new rates and conditions, and your lender will reassess your financial situation under current lending rules.
Can I release equity to buy a second property (in the Netherlands or abroad)?
Yes, you can often release equity from your Dutch home to help finance a second property, but lenders apply strict affordability and risk assessments. Your income, existing debts and total mortgage exposure will be reassessed, and requirements are usually stricter for investment or buy-to-let properties than for a second home for your own use. Mortgage interest on funds used for a second property is generally not tax-deductible in Box 1 and may fall under Box 3.
How long does it take to release equity in the Netherlands?
Releasing equity in the Netherlands usually takes a few weeks to several weeks, depending on the method and lender procedures. Increasing your mortgage with the same lender can sometimes be quicker, especially if no new notarial deed is required, while refinancing or switching lenders usually takes longer because it involves a full mortgage application, valuation and notary appointment.
