What are the requirements to getting a mortgage in the Netherlands?

Buying a house is always a complicated process. When buying a house in the Netherlands, things can even get a whole lot trickier if you do not speak and/or read the language. We have to admit that our bank policies and tax rules are somewhat confusing and getting a hold on useful English-language information on the requirements to getting a mortgage in the Netherlands is quite a hassle.
That’s why we’re happy to help with an overview of the most important aspects of mortgages in the Netherlands. It is our objective to help you with a guide to the rules and regulations you will need when trying to finance a house in the Netherlands.

Getting a Dutch mortgage

When applying for your hypotheek, the Dutch word for mortgage, you will encounter the same conditions as any other Dutch citizen. This automatically means that you have to work and live in the Netherlands to be entitled to a Dutch mortgage. Furthermore, the financial institution will ask for standard information such as your income, the value of the property, your contract of employment and marital status. This is no different from the process of getting a mortgages in other countries.

Special requirements for expats

However, although roughly the same conditions apply to both Dutch citizens and foreigners, expats will need to take into account a few important requirements before wanting to get a mortgage. Firstly, you will need to have a citizen service number (BSN). If you’re not a citizen from the EU or EEA (European Economic Area), a residence permit, (verblijfsvergunning) is mandatory. Generally your employer will be able to help you obtain these documents. Bear in mind that some financial institutions may have additional requirements for foreign applicants. It might be required that you have lived in the Netherlands for a period of at least six months. In other words; there may be some additional exigencies if you are new to the country or if you have recently started your job.

Self-employed

Although the requirements to getting a mortgage can be somewhat difficult for self-employed expats or expats who do not have a permanent contract of employment, it is definitely not impossible. If you are self-employed, you will need to present at least 24 or 36 months of history of basic income. The process is pretty straight-forward, the longer you’ve been self-employed, the more likely it is you’ll get a mortgage. If you do not have a permanent contract of employment, you will need a letter from your employer stating that your contract will be renewed under the same conditions.

House to let

With a standard mortgage it is not allowed to rent out your house. In other words: mortgages are strictly meant for self-occupancy. In special circumstances such as a transitional period, you may rent out your house for a limited period of time, but only with the full consent of the mortgage lender.
If you are planning to rent out the house, you can opt for the special buy-to-let mortgages. As you might expect, the interest rate is a lot higher when doing so. You will also have to invest some of your own money, this could go up to 30-50%.

Financial details

With a Dutch mortgage you can finance up to 100% of the market value of your home. However, bear in mind that you will need some additional budget to cover some of the non included costs:

  • Transfer tax: generally around 2 percent of the sale price of the house.
  • Appraisal/valuation report: always required when getting a mortgage.
  • Arrangement fee for the mortgage.
  • Notary fee.
  • Deposit or bank guarantee.

To get a better idea of the requirements to getting a mortgage in the Netherlands, get in contact with us and we are happ to inform and help you.