A buy-to-let mortgage in the Netherlands
An investment mortgage (or buy-to-let mortgage) works differently than a residential mortgage. Residential buyers can get a loan up to 100% loan to value. A rule of thumb is that if you plan to invest in a property, you must pay down 30% of the property price, which means you can get a 70% loan to value. Higher interest rates apply to investment mortgages. Expats living in the Netherlands can invest in buy-to-let.
Requirements for buy-to-let mortgages
- Mortgage lenders finance 70% of the loan value. The rest should come from the savings.
- A buy-to-let property is used for long-term occupation, which means no short rentals or AirBnB.
- You reside in the Netherlands.
- The (expected) rent covers the mortgage fees, the maintenance fees, taxes.