Student Debt and Mortgages

The key points at a glance

More and more first-time buyers will be dealing with student debt in the years ahead. It is important to know what your options are when applying for a mortgage with a student loan. Here you can read more about how student debt affects your maximum mortgage and find other useful information about applying for a mortgage with student debt.

1. What is student debt?

Since the performance-based grant (prestatiebeurs) was abolished, almost all students graduate with student debt. This is the amount they borrowed during their studies from DUO (the Dutch Education Executive Agency). You have to start repaying this amount two years after completing your studies, once you have a job. Since this debt comes with monthly costs, it has an impact on your mortgage application.

2. Maximum mortgage with student debt

There are still options for getting a mortgage with student debt. However, the maximum you can borrow will be somewhat lower than if you had no student debt. For loans taken out before 1 September 2015, a monthly charge of 0.75% is applied. For loans taken out after that date, the charge is 0.45%. These percentages are calculated on the original amount of your student debt, and the monthly charge is not reduced as the debt decreases. In general, the amount of student debt is deducted from your income when calculating the maximum mortgage.

3. BKR registration and disclosure obligation

Unlike other debts, your student loan is not registered with the Bureau Krediet Registratie (BKR, the Dutch credit register). This means the mortgage provider has no way of checking whether you have student debt. It is up to you to disclose this during your mortgage consultation. By mentioning it, you make sure you do not end up with unaffordably high mortgage payments due to borrowing too much. On top of that, you are legally required to disclose it to the provider, even though they cannot check it themselves.

4. Mortgage with student debt and NHG

Even if you have student debt, you can still take out a mortgage with NHG (the national mortgage guarantee). This can make it possible to get a higher mortgage because the bank has a guarantee that the loan will be repaid even in the event of a residual debt.

If you take out a mortgage with NHG, it is important that you disclose your student debt. If you have to sell your home with a residual debt and it then turns out that you had undisclosed student debt, that residual debt will not be covered.

5. Original student debt amount

As mentioned above, the monthly charge from student debt is calculated based on the original loan amount. So even if you have already been making repayments, that original figure is used when calculating your maximum mortgage.

There is one way to reduce this amount: make a one-off extra repayment. This causes DUO to recalculate your student debt, bringing the principal down. This results in a lower debt amount, which means lower monthly charges and potentially a higher mortgage.

Frequently asked questions

When do I have student debt?

You have student debt if you borrowed a monthly amount from the government during your studies. This could be under the old system (before 1 September 2015) or the new system (after that date).

Can I get a mortgage with student debt?

Yes, but the monthly costs of the debt mean your maximum mortgage will be lower.

How does student debt affect my maximum mortgage?

For a loan taken out before 1 September 2015, a monthly charge of 0.75% is applied; for loans after that date, it is 0.45%.

Am I required to disclose my student debt?

Yes, you are legally required to do so. The provider cannot check it themselves, but disclosing it ensures you can actually afford the monthly payments.

If I have already repaid some of my student debt, does it count for less?

The original student debt amount is used when calculating your mortgage. Only if you make an extra repayment will this figure be adjusted.

Can I get a mortgage with NHG if I have student debt?

Yes, but you must have disclosed your student debt to the provider. If you sell your home with a residual debt and it turns out you hid your student debt, NHG will not cover it.