10 June 2022
Loans and the maximum mortgage in the Netherlands
Özkan Karakol
Financial Specialist

You're probably aware that the sum of your income, mortgage term, and home value influences your maximum mortgage amount. Understanding how personal loans and credit affect borrowing ability is crucial. Here is an overview of the various types of loans and their implications.

Student loan

The Dutch credit registration institution (BKR) does not register student loans, which means the lender will not be able to check if you have a student loan abroad or in the Netherlands. Hiding your student debt is, however, not a good idea.

Assume you are experiencing financial difficulties in the future and cannot make your monthly mortgage payments. What will you do then? The sum the lender adds to your mortgage evaluation is the original borrowed amount of the student loan.

Unfortunately, any already repaid amount does not make a difference. If you took out your student loan in a currency other than euros, it will simply be converted. If your loan is from abroad, the calculation will be based on your monthly payments or the Dutch student loan system.

Example 1

The 0.65% weighing factor on your 15 years student loan of 15 000€ equals 97.50€ less on your monthly mortgage sum.

Example 2 (applicable for students starting after Sep 1st, 2015)

The 0.35% weighing factor on your 35 years student loan of 15 000€ equals 52.20€ less on your monthly mortgage sum.

Car lease

The BKR registered only 65 percent of a car lease agreement until this year. In April 2022, a new rule was enacted, requiring 100% registration. With a car lease, your maximum mortgage can be reduced by 50 000€ to 150 000€. If you intend to lease a car and purchase a home, you should first consult with a mortgage advisor to determine the impact. Find out more about mortgages and car leases in the Netherlands here.

Personal loans

The impact of this type of loan is heavily dependent on your circumstances. You could have taken out a personal loan to finance a renovation or a different personal goal.

Mobile phone subscriptions

Since 2017, some mobile phone service providers have met the same standards as lenders. As a result, installment plans for a new phone exceeding 250€ are recorded as loans. It might be wise to separate the service subscription from the payments for the smartphone itself.

A solution is to find a different way to finance it or put a downpayment, so your phone plan is not above 250€. Additionally, late payments to your provider can also possibly impact your future mortgage.

Credit card limit and overdraw

Banks can also look at the limit of your bank account, not your current debt, which can change your maximum mortgage. If you can repay your overdrawn expenses in several installments, be careful. Even if you are never "in the red," check your bank account settings before applying for a mortgage. BKR ignores credit cards with a standard monthly debit.

Rule of thumb

You can calculate the influence of a loan on your maximum mortgage as 2% of the total loan, which will be deducted from your maximum mortgage capacity.

Example: If you took a loan of 20 000€, your spending limit is 400€ per month less.

 

Do you have questions about your personal loan and mortgage?