Mortgage interest rates in the Netherlands

Buying a house or property is a significant investment and understanding the mortgage interest rates in the Netherlands is an essential part of this process. Whether you are a first-time homebuyer or a seasoned property investor, understanding mortgage rates trends will help you make well-informed decisions about your mortgage.

Factors influencing Dutch mortgage interest rates

Mortgage interest rates in the Netherlands can vary greatly among lenders as each institution sets their own rates. The level of interest on a mortgage is primarily determined by a number of factors, such as:

  • The bank that gives out the mortgage
  • The type of mortgage
  • The loan to value ratio
  • The fixed period

Mortgage interest rates in the Netherlands explained

Banks in the Netherlands typically offer fixed-rate periods of 1, 5, 10, or 20 years, but other options may also be available, depending on the lender.

The fixed-rate period refers to the length of time during which the mortgage interest rate remains unchanged. The longer the fixed-rate period, the higher the interest rate will be.

When determining the duration of a fixed-rate period, it is important to consider your intended length of stay in the Netherlands. Many expats opt for a fixed-rate period of between 1 and 10 years. Knowing your plans for the future can help you make an informed decision on the fixed-rate period that is right for you.

The loan-to-value ratio (LTV) is the comparison between the property’s value and the mortgage amount. To offset their risk, banks will adjust the interest margin proportionally to the LTV percentage.

In the Netherlands, the maximum mortgage that can be obtained on a house is 100% of the house’s market value. So if you apply for a mortgage at 100% LTV, you will face a higher interest rate. By putting savings into the property and borrowing less, you can reduce the rate you will have to pay.

Don’t forget, if you have an annuity or a linear mortgage, you can deduct the interest from tax.

Our team of experts are happy to provide additional information and answer any questions you may have. You can contact us by phone at +31 70 5118788 or by filling out our contact form.


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José de Boer
Finance Advisor