Mortgage interest rates in the Netherlands

Mortgages rates in the Netherlands vary between lenders, as each mortgage lender can determine their own mortgage rates. How high the mortgage rate is basically depends on several factors:

  • The bank that gives out the mortgage, as the rate varies per bank
  • The mortgage form, as this is different for an annuity and linear mortgage
  • The fixed period
  • The loan-to-value


The last two will be explained below. Looking for more into on the types of mortgages? We’ve explained what an annuity mortgage and a linear mortgages are.

Value-to-loan ratio

This is the ratio between the value of the property and the value of the mortgage. In order to cover their risk, banks increase the interest margin in line with the percentage of that ratio.

The maximum mortgage you can get on a house in the Netherlands is 100% of the market value of the house, and so, applying for a mortgage 0f 100% will give you the highest interest rate too. The lower the mortgage, the lower the interest rate.

Fixed term of the mortgage

This is the period for which the mortgages rates are fixed. The longer you decide to have the mortgage rates fixed, the higher they will be. Many banks offer options of 1, 5, 10 or 20 years, but other periods can also be available. This will depend on the bank you take out your mortgage from.

Knowing how long you plan on living in the Netherlands will make it easier to decide on what period you want to fix the mortgage rate at. A common practice for expats is to have a fixed period between 1 and 10 years.

If you have taken out a NHG

The NHG (Nationale Hypotheek Garantie) is a scheme that guarantees repayment of a mortgage, even if the borrower becomes unable to do so directly. It is only available for mortgages up to a certain value (EUR 247,450 in 2017). The NHG reduces the risk for banks and in turn, offer NHG participants a lower interest rate, typically up to 0.7 percent lower.

Want to know more?

FVB de Boer are experts in arranging mortgages for expats. For more information or advice, contact us by calling +31 70 5118788 or use the contact form.

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Jose de Boer Fvb de Boer

José de Boer
Finance Advisor