11 things expats should know about mortgages in The Netherlands

Are you planning to buy a house as an expat in the Netherlands? One important part is obtaining a mortgage. There are several things to consider as an expat.

1. Live in the Netherlands

To get a mortgage in the Netherlands, you must live in the Netherlands. Some mortgage lenders require that you live in the Netherlands from six months to three years. You have to prove this during the mortgage application. But most mortgage lenders do not make this requirement.

2. Residence permit

Are you a resident of a non-EU country? Then you need a residence permit with a non-temporary purpose. You have to prove this during the mortgage application. For example, seasonal work or working as an au pair has a temporary purpose. Employment is non-temporary. You can read more about temporary and non-temporary purposes here.

3. Permanent contract

To apply for a mortgage, you need a permanent work contract. Or a letter of intent. This applies not only to expats, but to anyone applying for a mortgage. Read more here.

4. Dutch bank account

Do you want to finance part of the house with your savings? Then you have to transfer that from a Dutch bank account. So make sure you have one.

5. No special expat mortgage

Whether you are a Dutch national or not, the same terms and conditions apply for any mortgage (hypotheek in Dutch). There are no special expat mortgages. Find out what documents you need here.

6. Borrow more through the 30% rule

Expat employees who meet certain conditions pay less tax for the first five years in the Netherlands. They do not have to pay tax on up to 30% of their salary. Most mortgage lenders include this discount in their calculations, allowing you to borrow a higher amount during the time you have this 30% rule.

7. Income from abroad

Do you live in the Netherlands but work for an employer in another country and get paid in a currency other than the Euro? Income from abroad is usually 90% included in mortgage lenders’ calculations. In practice, this means you can borrow less.

8. Not for rent

With a regular mortgage, you can only buy a house for self-occupancy. You are not allowed to rent it out (sublet). Only in special circumstances, like a long-lasting vacancy or a transitional period, is this possible. And then only for a limited period of time and with consent from the mortgage provider.

If you are interested in investing in a house to rent out to others, there are specific mortgages available. In these cases, the interest rate is higher and you will have to invest up to 30-50% of your own money.

9. Mortgage only covers the home

In the Netherlands, the maximum amount you can finance is 100% of the market value of your house. Taxes, mortgage advice and other fees must be paid out of pocket.

10. Other costs to consider

Costs you should expect to have to pay out of pocket are usually around 3 to 5% of the home selling price and include

Appraisal fee/valuation report (required for a mortgage)
The transfer tax (2% of the selling price)
Arrangement fee for the mortgage
Notary fee
The costs for a bank guarantee

11. More success with a buying agent

The housing market in the Netherlands is quite overheated. There is more demand than supply. To increase your chances it is advisable to work with a local real estate agent. He or she is well informed about the housing market, maintains contact with the selling party and can advise you on a realistic offer.

Mortgage advice services

We are happy to help you meet the requirements and obtain a mortgage in the Netherlands. Besides navigating the maze of lenders and requirements, we can help to: