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 properties.

Differences between residential and buy-to-let mortgages:

1. A residential mortgage is for individuals who plan to live in the property. Residential buyers can get a loan up to 100% loan to value. 

2. A buy-to-let mortgage is for individuals who plan to buy a home as an investment. A rule of thumb is that investors can get a mortgage up to 70% loan-to-value (LtV).

Requirements for buy-to-let mortgages in 2022

1. You must contribute 30 % of the property price from your savings or equity from an existing property.

2. You need to be registered and live and work in the Netherlands.

3. You must pay 8% of transfer tax and other closing fees (real estate agent, valuation report, notary, translator, and mortgage brokerage fees).


1.  Suitable for long-term rent.
2. No short-term rentals, holiday homes, or Airbnb.
3. Owners of investment properties are not allowed to live in the property as residents.

*If you plan to live in the buy-to-let property as an owner, you must refinance your mortgage to a residential mortgage.

How does it work:

1. Dutch mortgage lenders review the property you plan to purchase.
2. A valuation report is required to determine the property's value, market value, and expected rent.
3. Mortgage lenders check if VvE is healthy.
4. Rental income is always one of the key indicators when applying for a buy-to-let mortgage.
5. Mortgage lenders check your income and savings to determine how much mortgage you can afford.

Buy-to-let calculations

Banks and mortgage lenders have different requirements and calculations to determine how much you can borrow. For this reason, please contact us to receive a mortgage report which is based on your situation.

Buy-to-let mortgage lenders

1. Mortgage lenders have different requirements to apply for investment mortgages.
2. The buy-to-let market is small in the Netherlands. Only a few lenders offer investment products: Dynamic Credit, Nationale Nederlanden, Rabobank, Lloyds bank, NIBC, De Nederlandse, Domivest, RNHB and Woonfonds.
3. Mortgage lenders work only with mortgage brokers. Please contact us for investment opportunities in the Netherlands.
4. Not all buy-to-let mortgage products are available for internationals (expats).
5. Higher interest rates apply to investment mortgages.

Buy-to-let mortgage types:

1. Linear mortgage
2. Annuity mortgage
3. Interest-only mortgage

Residential homeowners with a mortgage are taxed in Box 1, while property investments are taxed in box 3.The Netherlands doesn't have a capital gains tax. So rental income is not taxed if the property is in box 3. If you buy the property as a real estate BV, the situation changes—for example, a capital gains tax as it becomes part of the BV profit.

Buy-to-let mortgage example:

The asking price is € 350,000.
Property value € 330,000.
Your maximum mortgage is 85% LtV: € 231,000
Closing fees: € 38,000

You are refinancing when you switch your residential mortgage to a buy-to-let mortgage. In most cases, you must pay the penalty to your existing mortgage lender for breaking your current contract.
How to refinance a residential mortgage to a buy-to-let mortgage?

Let say you took a residential mortgage some time ago. Now you plan to move away from the Netherlands, and you want to rent your property out. Your current mortgage lender does not offer investment products, so you must switch mortgage lenders.Note: not all mortgage lenders offer an investment product in the Netherlands. Only a few lenders like ( NIBC, Nationale Nederlanden, or Dynamic Credit offer buy-to-let mortgages. For more information, please contact us.

Mortgage penalty

If you plan to switch mortgage lenders, you usually pay the prepayment penalty to your current lender. The prepayment penalty depends on:1. The duration of your fixed term.
2. Fixed interest rate.
3. Difference between your interest rate and current interest rates.
4. Mortgage lender terms.

For example, your mortgage sum is € 400,000. The fixed interest rate for ten years is 1.70%. You break the deal with an existing bank after seven years. You still have three years remaining to pay. Your penalty will be the sum of the interest rate for three years minus the current interest rate payments.

Before investing in real estate, ask yourself:

1. What type of property do you want to buy (new project, luxurious apartment, student apartment)?
2. What rent do you expect?
3. How much profit do you expect to get after taxes?
4. Research the neighborhood and WOZ value. Find out how much rent cost in a similar area.
5. How will you cover maintenance expenses?
6. Do you have plans to hire a company to manage your property?
7. How do you plan to cover monthly mortgage payments if you are not able to find new tenants?
8. Six tips for buy to let before you start.

Reasons to invest in real estate

1. You increase your cash flow if your property is rented out.
2. The property’s value could increase.
3. You use the bank’s money to invest.

Reasons NOT to invest in the real estate

1. The initial costs of purchasing an investment property.
2. The on-going fees like mortgage, maintenance, management fees, taxes.
3. Your property can stay vacant.
4. The property’s value could decrease.
5. You put your eggs in one basket.

Alternative ways to invest your savings

1. Invest your money in various asset classes. Smart investments can bring you a higher return in the long term than real estate. For more information, please contact us. We guide you through investment opportunities in the Netherlands and help you to reach your future financial goals.
2. You invest your savings in bonds or stocks.
3. Keep your savings in high-yield savings accounts.

Do you have questions about a buy-to-let mortgage?