Buying a home as an expat in the Netherlands.
You can buy a house as an Expat or Immigrant, even when you don’t have a Dutch Passport. Most of the time it’s very unclear how this works and what can be arranged for you with a Mortgage in the Netherlands. One thing is very clear, the house has to be in the Netherlands. Some of the Dutch banks will give you special requirements (like living in the Netherlands for x years). See a couple of different situation below:
EU nationality and residence permit
Are you from an EU member state? So often there is no problem and you can take out a normal mortgage, the same rules apply to you as to a Dutch national, even if you have a not temporary or permanent residence permit. When calculating your maximum mortgage, your income is the most important factor and make sure you will get the same offer as a citizen of the Netherlands.
No EU member state or a temporary residence permit
If you do not come from an EU Member State and have a temporary residence permit, you can often still buy a home in the Netherlands as an expat. In this case, however, other conditions apply. For example, in this case some banks give a maximum mortgage of 90% of the home value. Normally in the Netherlands you can finance your Mortgage up to 100% of the value (including future reconstruction work). There are also banks that will not provide you with a mortgage if you are here temporarily. Are you from the UK and want a Dutch Mortgage? If you come from the United Kingdom, a passport will no longer suffice from 1 January 2021 and you will have to show a valid residence document.
The risk for the mortgage lender
Buying a house in the Netherlands as an expat without a Dutch passport poses a number of risks for the mortgage lender. The biggest risk is that a mortgage is provided in the Netherlands to someone who may go back abroad and does not comply with the agreements. A few years ago, banks dared to take the step to offer mortgages to expats. What happened next? Expats adhered very well to the rules. As a result, banks currently see fewer risks. Good job folks, you are helping your fellow Expats. At the moment, about 90% of the income of expats is included in the calculation of the maximum mortgage. This allows the bank to hedge risks. Because only 90% of the income is included, expats with an income in currencies other than the euro can borrow less than someone with an income in euros. Yet there are still plenty of opportunities to buy a house in the Netherlands as an expat.
Which banks in the Netherlands are open for a Dutch Expat Mortgage?
There are several mortgage lenders that provide mortgages to non-Dutch citizens, under their own conditions. Among these parties we find:
- ABN AMRO
- ING Bank
- Florius Hypotheken
We expect that in the coming years, more banks and other companies will follow the example and offer Mortgages to Expats. For more information, you can also visit the Dutch Government website to understand the rules.