Calculate your buy-to-let mortgage.

Buying a property to rent out can be an attractive way to grow your wealth. The financing simply works differently than a mortgage for your own home. With a buy-to-let mortgage you buy property that you rent out instead of living in it yourself. Calculate above what is possible for you, and read below what to keep in mind.

What is a buy-to-let mortgage?

A buy-to-let mortgage, also known as a verhuurhypotheek, is a loan you use to buy a property to rent out. Because you use the property as an investment and do not live in it yourself, a provider assesses the application differently than a regular mortgage. The conditions, the interest and the amount you can borrow therefore differ. Do not confuse the buy-to-let mortgage with the investment mortgage: that is a mortgage type for your own home where you invest instead of paying off the loan.

How much can you borrow?

With a buy-to-let mortgage the provider does not look at the ordinary (vacant) value of the property, but at the market value in let condition. That value is lower, because a rented-out property is harder to sell. You can often finance around 70 to 90 percent of that value. Bringing in your own money is therefore almost always necessary, on top of the buyer's costs.

Conditions for a buy-to-let mortgage

The number of providers is more limited than for regular mortgages, and the requirements are stricter. Keep the following in mind, among other things:

• You never finance the full purchase price, so count on a substantial own contribution.
• The interest is usually higher than for a mortgage on your own home, because the risk for the provider is greater.
• Providers look at the expected rental income and often also at your other income and assets.
• Some providers set requirements for the type of property, the location or the form of letting, for example no room rental or temporary letting.

The buy-to-let mortgage and tax

A property you rent out falls into box 3 (savings and investments) for tax purposes. The mortgage interest is then not deductible, unlike with a mortgage for your own home in box 1. The value of the property and the mortgage debt count towards your assets in box 3. For rented-out properties you can often reduce the WOZ value with the vacant value ratio (leegwaarderatio), which lowers the value in box 3.

Also pay attention to the transfer tax. For a property that does not become your main residence, the high rate applies instead of the 2 percent for an owner-occupied home. In 2025 that was 10.4 percent; from 2026 this has been reduced to 8 percent. That is a considerable cost that directly affects your return, so include it in your calculation.

Watch out for municipal rules

More and more municipalities set rules for buying up homes to rent out. With the buy-up protection scheme (opkoopbescherming) a municipality can impose an owner-occupancy requirement in certain neighbourhoods, which means you may not simply rent out a property you have bought. In addition, a permit may be required for room rental or splitting a home into separate units. So check the local rules before you buy, because they determine whether letting is allowed in that location at all.

Calculating the return

Whether a rental property is a good investment depends on the difference between your rental income and your costs. A simplified example: if you buy a property of 250,000 euros that you rent out for 1,250 euros per month, you receive 15,000 euros in rent per year. That is a gross return of 6 percent on the purchase price. Your costs then still come off that.

Those costs include the mortgage payments, maintenance, insurance, any management fees, the box 3 tax and vacancy. Work out carefully in advance what you have left over net, so you are not faced with any surprises.

Frequently asked questions

Is the interest on a buy-to-let mortgage deductible?

No. A rented-out property falls into box 3, and there the mortgage interest is not deductible. That is an important difference from the mortgage for your own home in box 1.

How much of my own money do I need?

Because you can usually borrow 70 to 90 percent of the market value in let condition, you quickly bring in several tens of thousands of euros of your own money, plus the buyer's costs and the transfer tax.

Can I rent out my current home with my regular mortgage?

Not just like that. A mortgage for your own home assumes that you live in it yourself. If you want to rent out that property, you need permission from your provider, and often a buy-to-let mortgage is then the right form.

What is market value in let condition?

That is the value of the property including the sitting tenant. Because a rented-out property is harder to sell than an empty one, that value is lower than the ordinary market value. The provider bases your maximum loan on this lower amount.

Applying for a buy-to-let mortgage

Because a buy-to-let mortgage is tailor-made, it pays to map out the options in advance. Calculate above what is possible for your situation and request a free, no-obligation meeting with a mortgage adviser from HypotheekBerekenen.nl.