Mortgage interest rates in the Netherlands

Buying a house or property is a significant investment. 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, as the rate varies per bank
  • The mortgage form, as this is different for an annuity and linear mortgage
  • The value-to-loan
  • The fixed period

Mortgage interest rates in the Netherlands explained

To understand mortgage interest rates in the Netherlands, several factors must be taken into account. The latter two factors in the above list, value-to-loan and fixed period, will be further discussed below. Are you seeking more information on the various types of mortgages? We have provided detailed explanations of annuity mortgages and linear mortgages.

Value-to-loan ratio

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. Thus, applying for a mortgage at 100% LTV will result in the highest interest rate. Conversely, a lower mortgage amount will result in a lower interest rate.

Fixed term of the mortgage

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. 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.

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 between 1 and 10 years as a common practice. Knowing your plans for the future can help you make an informed decision on the fixed-rate period that is right for you.

Your trusted mortgage advisor

Our team of experts would be delighted to assist you by providing additional information and answering any inquiries you may have. You can contact us by phone at +31 70 5118788 or by filling out our contact form. We look forward to hearing from you and helping you make an informed decision about investing in the Dutch property market.

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José de Boer
Finance Advisor