Understanding the Basics of Dutch Mortgages for Expats
If you’re an expat looking to buy a house in the Netherlands, it’s essential to understand the basics of Dutch mortgages. In this blog post, we will provide you with an overview of the most important factors you need to know before applying for a Dutch mortgage.
What is a Dutch Mortgage?
A Dutch mortgage, or “hypotheek” in Dutch, is a loan taken out by homeowners to finance the purchase of a property. Unlike other countries, in the Netherlands, mortgages are typically provided by banks and mortgage lenders.
How to Apply for a Dutch Mortgage
To apply for a Dutch mortgage, you will need to provide the following documents:
- Proof of income
- Employer statement
- Bank statements
- Tax returns
- Valid ID
- *Residency permit (if applicable)
It’s important to be prepared for your first mortgage meeting by having all the necessary documents ready. If you need help with this, Rocket Mortgages can guide you through the process. (how to be prepared for your first mortgage meeting)
Types of Dutch Mortgages
There are two main types of Dutch mortgages:
- Annuity: With an annuity mortgage, you pay back a fixed amount each month, including interest. The amount of interest you pay decreases over time, while the portion of repayment increases.
- Linear: With a linear mortgage, you pay a fixed amount of repayment each month. On top of this fixed amount of repayment you pay interest and the interest decreases every month. Which means the total amount of the monthly payments decreases. In the beginning of a linear mortgage you pay a much higher monthly payment than with a annuity mortgage. But at the end of your mortgage you pay way less than with a annuity mortgage. A linear mortgage is interesting for people who meet their pensioen or people who know they will earn less later on.
Additional Factors to Consider
There are several additional factors to consider when applying for a Dutch mortgage, such as:
- Maximum mortgage amount: The maximum amount you can borrow depends on your income, personal situation, and the property’s value. Use our calculator to estimate the maximum mortgage you can obtain. (maximum mortgage)
- Extra Costs: In addition to the mortgage, there are extra costs involved when buying a home, such as transaction and notary fees. You can find more information about these costs on our website. (buying a house with NHG)
- Independent advisor: We recommend working with an independent mortgage advisor to help you find the best mortgage for your situation. (choose an independant advisor)
Resources for Finding Housing in the Netherlands
Finding housing in the Netherlands can be challenging for expats. Here are some resources to help you get started:
At Rocket Mortgages, we specialize in providing mortgages for expats in the Netherlands. Contact us (contact) to learn more about our services and how we can help you find the right mortgage for your situation. Alternatively, you can contact our mortgage advisors, Rogier (contact Rogier) and Ilse (contact Ilse), directly.
Looking for more information about Dutch mortgages for expats? Check out our blog (news) and read our post about Applying for a Mortgage as an Expat in the Netherlands. (Applying for a Mortgage as an Expat in the Netherlands: What You Need to Know)
