Mortgage in the Netherlands
Buying a property is one of the biggest financial and emotional decisions in your life. Especially when you buy a house in another country like the Netherlands where language and lack of connections could make it more challenging. What do you need to do to get a mortgage? In this section we explore your options.
House prices in the Netherlands
House prices in the Netherlands have skyrocketed in recent years. But we are seeing a slight decrease in house prices, 5% down in September 2022. Mainly caused by the increasing rates for mortgages.
Can i get a mortgage in the Netherlands?
The good news is that having a different nationality is no longer an obstacle getting a Dutch Mortgage. Further you must live and employed/self-employed in the Netherlands and the house you want to buy is located in the Netherlands. You will need a BSN Number (Tax Identification Number).
The amount of money providers widens considerable when you lived in the Netherlands longer and when you work history is long and stable. Contacting your Dutch bank and inform about the possibilities is a good start.
What type of Dutch mortgages are there?
There are a wide variety or mortgages to choose from but the most common ones are annuity mortgage and linear mortgage.
Annuity mortgage – Annuïteitenhypotheek
With annuity mortgage you will pay the same amount over the whole period of the mortgage. In the beginning, this amount is mainly interest and only a small part of the loan. Gradually, this changes, so that at the end of the mortgage.
Linear mortgage - Lineare hypotheek
With a linear mortgage the amount of debt that you pay remains fixed every month. On top of the debt, you will also pay interest, which will be the highest at the beginning of the mortgage since you haven’t paid anything back yet. Your monthly payments start higher, but they will gradually decrease.
What is National Mortgage Guarantee?
The Dutch National Mortgage Guarantee scheme is unique in Europe. It will help you take out a mortgage that will be affordable and responsible from the start. When you run into problems meeting your payments due to circumstances beyond your control, the National Mortgage Guarantee can provide a safety net for you and your mortgage lender.
The National Mortgage Guarantee is referred to in Dutch as ‘NHG’ or ‘Nationale Hypotheek Garantie’.
If you have an NHG-backed mortgage and can no longer pay your mortgage due to specific circumstances beyond your control, you and your mortgage lender will contact NHG.
This happens when you lose your job, relationship ends, disabled from work or when you partner dies.
Recommended providers
ABN Amro
ABN AMRO Bank N.V. is a Dutch bank with headquarters in Amsterdam and is the third-largest bank in the Netherlands. Check the website for a mortgage calculator and more information about their mortgages.
AEGON
Aegon N.V. is a Dutch multinational life insurance, pensions and asset management company headquartered in The Hague, Netherlands.