12 questions about a Dutch mortgage

12 questions about a Dutch mortgage

640 427 Egle Kemezyte

Egle Kemezyte
Financial Specialists
Mortgage advice for internationals 

 


As a home buyer, you must make a significant financial decision. The decision might look scarier than it truly is. If you are aware of the Dutch mortgage process, you will have more confidence to make the right decision. For this reason, we’ve answered the most common questions that home buyers would ask us about a Dutch mortgage in 2020.

1. How to get a mortgage Netherlands?

BSN ( citizen service number) 
To get a Dutch mortgage, you must have a BSN number. Are you planning to move to the Netherlands, and you do not have a BSN yet? We can calculate your mortgage estimate to check how much you can borrow without a BSM number. However, to apply for a Dutch mortgage, you must have a BSN number.

Calculate how much you can borrow
The next step is to calculate your maximum mortgage in the Netherlands. Before you start looking for your dream home, it is essential to know how much you can borrow. Online calculators are not accurate enough. Mortgage calculators only consider yearly gross salary and do not include bonuses or holiday pay. For this reason, contact us to get a personalized estimate.

Documents required for mortgage estimate
– Copy of passport
– resident permit (if applicable)
– Recent salary slip
– Contract of employment
– Confirmation letter of 30% ruling (if applicable)
– Overview of assets/savings
– Overview of credits/loans

2. Can I get a Dutch mortgage if I’m temporarily employed?

Short answer: Yes. You can get a mortgage if you have temporary employment.

You can get a mortgage in the Netherlands if you’re temporarily employed. To get a mortgage, you will be required to show a declaration of intent. In other words, your employee must have the intention to further your employment as soon as your temporary contract expires. Besides, you must provide a list of mortgage application documents.

3. Do I qualify for a mortgage in the Netherlands if I’m permanently employed?

Short answer: Yes. You can get a mortgage if you’re permanently employed.

One of the requirements to get a mortgage in the Netherlands in a more quick way is a permanent contract. If you have a permanent agreement, your mortgage application process will be more rapid. The additional documents required when getting a mortgage in the Netherlands are:

  1. your proof of income
  2. proof of savings/assets
  3. proof of debts/financial obligations
  4. documents about the property

4. How much are the closing fees in the Netherlands?

When buying a property in the Netherlands, you must pay closing costs, including property taxes, insurance, notary, and more. In other words, closing fees include all services and expenses required to secure a mortgage.  Mortgage closing costs depend on the amount you’re planning to lend and the value of your property. Check the list of mortgage costs below 

  1. Purchase Price
  2. You pay 2% of the property price to the Dutch Tax Authorities.  From 2021 people aged 18-35 will not pay a transfer fee if they purchase their first property. You are not obliged to pay a property tax when purchasing a new build property.
  3. A real estate agent can cost between EUR 1000 to EUR 3.500. You can find a real estate that charges a fixed fee while others charge a commission depending on the property price.
  4. A valuation report is a mandatory rule when applying for a mortgage in the Netherlands. Your mortgage lender requires a professional appraisal to check the value of the house. 
  5. Movable goods if applicable.
  6. Notary (deed of ownership, deed of mortgage, public land records). Notary fees in the Netherlands vary between EUR 1.500 to EUR 3000.
  7. Translator.
  8. Renovation or additional costs.
  9.  NHG (National Mortgage Guarantee is a scheme that protects you and your mortgage lender). It helps you repay your mortgage if you are not able to do it due to disability, divorce, or unemployment. You can get an NHG protection if your property price does not exceed € 310,000 of the property’s value. You only need to pay a one-time fee of 0.7% of your mortgage amount. If you are planning to borrow EUR 175.000, your NHG fee will be EUR1225. 
  10. Mister Mortgage charges a fixed fee for a mortgage advisory and brokerage. For more information, check our pricing page.

You can use our calculator to determine how much savings you must have to finalize a mortgage in the Netherlands. The total amount of closing fees depends on the purchase price. All closing fees are payable on the day when you sign the transfer of ownership at the notary.

5. Can I get a mortgage if I’m a freelancer in Amsterdam?

Short answer: Yes. You can get a mortgage if you’re a freelancer.

The same rules apply for freelancers as self-employed internationals in the Netherlands. To get a mortgage as a freelancer, you must show the details of your earnings and paid taxes from the last twelve months. We work with different mortgage lenders in Amsterdam, so we can always find the best solution for you. Are you a freelancer? Tell us about your situation, and we will provide a matching solution.

6. I’m an E.U. citizen, can I buy a house in the Netherlands?

Short answer: Yes. E.U. citizens are eligible to apply for a mortgage in the Netherlands.

Banks need your BSN, show your contract of employment, proof of income and savings, and debts. The additional mortgage requirements depend on the mortgage lender in the Netherlands. Contact us for more information.

7. Can U.S. citizens buy a property in Amsterdam?

Short answer: Yes. U.S. citizens are eligible to apply for a mortgage in the Netherlands.

The U.S. or non-European Union passport holders can get a mortgage in the Netherlands, yet they need to prove their residency in The Netherlands. Non-EU citizens are subject to almost the same rules as E.U. citizens. You can check the list of required documents here.

8. Are Ph.D. students/academics able to get a mortgage on their house in the Netherlands?

Ph.D. students/academics can buy a house in the Netherlands and finance their homes with a mortgage. Check the list of documents required to get a mortgage in Amsterdam here.

9. How much can I borrow in the Netherlands?

It’s one of the most popular questions when it comes to your dream home in the Netherlands. The amount you can borrow depends on two measurements: your annual salary and the value of the property. The mortgage calculator can help you to check how much you can borrow, yet the mortgage calculators aren’t detailed enough. We advise you to schedule your free mortgage appointment and get personalized mortgage advice.

10.  Can a foreigner buy a house in the Netherlands?

Short answer: Yes.  Non-residents can get a mortgage in the Netherlands

The citizens from non-Eu countries have similar requirements for a mortgage in the Netherlands. You must have a BSN number and prove your residency in the Netherlands. If you are living abroad and planning to purchase a property, schedule a call with us to explore your possibilities in the Netherlands.

11. Mortgage advice in the Netherlands

Mortgage advisers represent your needs and find a mortgage that fits your financial situation. Mortgage advisers work with different mortgage lenders. Banks only present one product while the mortgage broker can compare 30 mortgage products.

Good mortgage adviser:
1. Analyses your financial position and mortgage affordability.
2. Knowledge of different mortgage products.
3. Manages your mortgage application process from start to end.
4.Analyses possible financial scenarios.

12. How long does it take to buy a house in the Netherlands?

The process of buying a home varies by customer. You can speed the process up by starting to collect documents or looking for a home. As soon as you find a home, you must inform your mortgage broker. Your mortgage broker submits all required documents for the mortgage application. The final mortgage approval can take between 2 to 7 business days.