Pension and a Mortgage

The key points at a glance

Approaching retirement age or already retired and want to calculate your maximum mortgage? The maximum mortgage you can get depends on your income. You need to start from your gross income, but you also have to account for any changes coming up in the near future, like an approaching retirement. Ten years before your retirement date, mortgage providers base your maximum mortgage on your expected pension income. Your pension income consists of the AOW (the Dutch state pension), any employer pension, and provisions you have arranged yourself (such as a life insurance policy or personal savings).

1. Paying monthly costs after retirement

You can calculate your mortgage ahead of retirement to make sure you still have enough money to cover your monthly costs after you reach the AOW age. This is especially important when the 30-year term of your mortgage runs beyond your AOW age.

If you are 55 years old right now, for example, a new 30-year mortgage will run until you are 85. That means you will need to pay the monthly costs for 20 years on an AOW benefit, possibly supplemented by your employer pension.

2. Pension provisions

Whether you can buy a home with a mortgage depends on your pension provisions. Do you only receive an AOW benefit, or can you also draw on an occupational pension alongside that benefit? It is important to add up your total gross income from all pension sources. You can calculate your mortgage during retirement based on this total amount, so you can keep covering your monthly costs.

3. How much mortgage can you get?

Curious exactly how much mortgage you can get? Head to our page "how much mortgage can I get". There you can work out your mortgage with a special calculation we make for you.

4. Equity release mortgage

As a supplement to your pension, you can also make use of a verzilverhypotheek (silver mortgage) or opeethypotheek (equity release mortgage). These are mortgage types that let you draw on the equity in your home. This is possible once the value of your home exceeds the remaining mortgage debt. That amount can be taken out as a supplement to your pension. This type of mortgage is generally only available once you are 60 or older.

5. Calculating your maximum mortgage for retirement

You can calculate your maximum mortgage online to get an idea of what is possible in the longer term. Are you approaching the AOW age soon and want to stay in your home, which still has a sizeable mortgage on it? Make sure you keep enough income coming in, or start making extra repayments.

When you renew or take out a new mortgage, there is a chance you will no longer be able to claim the mortgage interest deduction. Avoid being forced to sell your home by paying it off in time or making sure you have enough income during retirement.