What is the best Dutch Mortgage in the Netherlands?

Top 5 Dutch Loans and Mortgages

Compare the most popular Dutch Mortgage Providersin the Netherlands and choose the loan forms that fits you best.

This article is published 27 juni 2021. Last Updated on 8 februari 2024.

Getting a mortgage in the Netherlands involves the following steps: Assess your financial situation and determine your budget. Gather the required documentation, such as proof of income and identity. Research different mortgage providers and compare their offerings. Get pre-approved for a mortgage to strengthen your position when making offers on properties. Finalize the mortgage application with the chosen lender and review the mortgage offer. Sign the mortgage agreement and work with a notary to complete the property purchase process. Please consider if you need a loan and make sure you at least compare two different offers from different companies!

Top 5 Dutch Mortgages for Expats

Mortgage provider

Getting a Mortgage in the Netherlands: A Step-by-Step Guide

If you’re considering getting a mortgage in the Netherlands, here’s a step-by-step guide to help you navigate the process:

  1. Assess Your Financial Situation: Before applying for a mortgage, evaluate your financial situation. Consider your income, savings, expenses, and any existing debts. This will help you determine how much you can afford to borrow and repay comfortably.
  2. Determine Your Budget: Based on your financial assessment, establish a budget for your home purchase. Take into account the down payment you can provide and the monthly mortgage payments you’re comfortable with. Remember to consider additional costs like property taxes, insurance, and maintenance.
  3. Gather Required Documentation: Prepare the necessary documents for the mortgage application process. These typically include proof of identity, income statements (such as payslips or tax returns), bank statements, employment contracts, and details of any existing loans or debts.
  4. Research Mortgage Providers: Explore different mortgage providers and compare their offerings. Consider factors such as interest rates, mortgage terms, fees, and customer reviews. You can consult with multiple lenders or work with a mortgage broker who can provide guidance and help you find the best options for your needs.
  5. Get Pre-Approved: Consider obtaining a pre-approval letter from a mortgage lender. This document indicates the maximum loan amount you’re eligible for based on your financial profile. Having a pre-approval can strengthen your position when making offers on properties.
  6. Find a Property: Search for a suitable property that fits within your budget and meets your requirements. Engage a real estate agent to assist you in the search process. Once you’ve found a property, negotiate the price and terms with the seller.
  7. Finalize the Mortgage Application: Submit your complete mortgage application to the lender of your choice. Provide all the necessary documentation and information accurately. The lender will assess your application, conduct a property valuation, and perform a credit check.
  8. Mortgage Approval and Offer: If your application meets the lender’s criteria, you will receive a mortgage offer outlining the terms and conditions. Carefully review the offer, including the interest rate, repayment schedule, and any additional requirements.
  9. Sign the Mortgage Agreement: If you accept the mortgage offer, you’ll need to sign the mortgage agreement. This legally binds you to the terms of the loan. You may also need to pay any required fees, such as arrangement fees or notary fees.
  10. Completion and Disbursement: Work with the notary to finalize the property purchase process. The notary will handle the legal aspects, including transferring the ownership of the property. Once completed, the mortgage funds will be disbursed to the seller, and you become the official owner of the property.

Remember, the mortgage process can be complex, and it’s essential to seek professional advice and guidance throughout the journey. Consulting with mortgage advisors or experts can help ensure you make informed decisions and navigate the requirements smoothly.

Revolving Credit in the Netherlands

With a revolving credit (also known as DK), you agree to a limit with the lender. In the Netherlands, this would be considered as the semi most popular form of loan. You may withdraw money up to that limit. The moment you have withdrawn money, you must pay on the withdrawn balance. In these situations you have to redeem on the basis of part of the withdrawal limit. If desired, you can make additional amounts in the meantime, up to the credit limit. It is also possible to pay off additional amounts. The interest owed consists of a variable interest rate. A revolving credit is a very flexible form of credit.

Revolving credit is a very flexible form of credit. With a revolving credit, you (the borrower) agree with the lender an amount that you may withdraw in total. This amount is called the credit limit. You decide which amounts you withdraw and when. As soon as you have withdrawn money, you will pay interest. You only pay interest on the amount withdrawn. The interest you owe is variable. You therefore do not know in advance exactly what your interest charges will be during the credit period. During the term, you must repay the withdrawn credit in instalments. In addition to these fixed repayment amounts, you can repay additional amounts at any time without penalty. However, you can also decide at any time to withdraw the repaid amount again. As long as the total amount withdrawn remains within the credit limit.

WOZ Credit

Every owner-occupied house in the Netherlands is valued by the government and is given a WOZ value. WOZ stands for Property Valuation (Waarde Onroerende Goederen) and is set by the government, based on the value of your house(s). By a WOZ credit we mean a revolving credit that is only available to the owners of a home. The WOZ value determines the maximum loan. There is therefore no valuation to take place (and neither do you have to go to the notary). The interest on a WOZ loan is often very competitive.
WOZ stands for Real Estate Valuation Act. Every year, the government determines the WOZ value of all real estate. This WOZ value is used by the government, among other things, as a basis for real estate taxes and sewerage law. The WOZ value is also used by some lenders, namely for the WOZ credit.

By a WOZ credit we mean a revolving credit especially for owners of an owner-occupied home. This involves looking at the WOZ value of your home to determine which credit limit you qualify for. The maximum loan is often based on 150% of the WOZ value minus the existing mortgage. Sometimes registration at the civil-law notary is used instead of the existing mortgage. This can be higher than the current mortgage, which reduces the borrowing capacity. Naturally, the maximum loan that is possible based on your WOZ value will only be granted when your personal and financial situation permits.

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:

  2. ING Bank
  3. 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.

Introduction of the author: Roger

Roger is a Dutch citizen with experience living and working as an expat in multiple countries. Roger has a deep understanding of the complex Dutch financial landscape and is able to provide insights and expertise to help other expats make informed financial decisions.