Taking Out a Mortgage Online

The most important things at a glance

More and more people want to take out their mortgage online, but how does that actually work? An online mortgage is arranged through an online mortgage provider or a bank that offers this service. All contact with the provider and adviser happens by phone or online only.

1. Providers for taking out an online mortgage

Among others, you can go to the following providers to take out a mortgage online:

• Hypotheek24.nl
• Executiononlyhypotheek.com
• Hypotheekmakelaar.nl
• Geencentteveel.nl
• Independer
• Zelfhypotheekafsluiten.nl

Please note! Not all mortgage providers offer their products through these parties. The range available will vary by intermediary. It is wise to check in advance where you can go.

You can also take out a mortgage online (with or without advice) at the following banks:

• Centraal Beheer
• ABN AMRO
• Argenta
• SNS Bank
• Florius
• Lloyds Bank
• bijBouwe

2. Advantages of an online mortgage

• You can take out your mortgage and get advice wherever and whenever you want.
• The costs are lower.
• Extensive experience with a wide range of situations through a nationwide client network.
• Calculation tools that let you run your own figures.

3. Execution only

An execution only mortgage is a mortgage you take out entirely on your own, without mortgage advice. To do so you must complete a knowledge and experience test to confirm you know enough to arrange a mortgage without advice.

4. How does arranging it yourself work?

You can go through an intermediary or directly to execution only mortgage providers to arrange a mortgage yourself, without advice and without advice costs. You can start the mortgage application wherever and whenever you want. You gather the right documents and information yourself and build up your mortgage file online.

The step-by-step process:

1. Calculate how much you can borrow. Look at your gross and net monthly costs. Calculate the size of mortgage you need, your maximum mortgage, and how much of your own money you need to buy the home.
2. Choose a mortgage type that suits you and decide how long you want to fix the interest rate.
3. Compare the different mortgage providers and mortgage interest rates.
4. Consider which additional insurance policies you want or need to cover risks, such as disability, unemployment, or the death of you or your partner.
5. Complete the knowledge and experience test.
6. Gather all the required documents and information to take out your mortgage. The website of the provider you choose will have a full list of everything you need.
7. If the provider approves your application, you will receive a quote. Once you have signed the quote, the paperwork goes to the notary and your mortgage is finalised.

5. Who is execution only suitable for?

Mortgages are not straightforward. There are many different things to consider and various legal requirements to keep in mind. Some knowledge of mortgages is therefore required when arranging one yourself. Nobody wants to take out a mortgage with an unnecessarily high interest rate or unfavourable conditions. You can also miss out on premiums and discounts if you are not well informed.

Who is it suitable for to arrange an online mortgage without advice?

• Consumers with sufficient knowledge of mortgages
• Consumers who have already received mortgage advice but have not yet taken out a mortgage
• Consumers who want to save on advice costs (and have or are willing to acquire sufficient knowledge)

Knowledge test

To take out a mortgage you must complete a knowledge and experience test. The AFM (Netherlands Authority for the Financial Markets) requires this before a mortgage can be issued. The tests vary considerably between providers, as the format is not prescribed. If you fail on your first attempt, some providers allow you to retake the test. Legally, failing a knowledge test has no consequences. However, the bank will advise you not to take out a mortgage without advice.

When you cannot arrange it yourself

In some more complex situations you will probably not be able to arrange a mortgage on your own:

• You have a residual debt from selling your previous home
• You receive a benefit payment
• You are retired
• You are self-employed (ZZP'er)
• You have no income
• You want to remortgage a savings or investment mortgage

If any of the above situations apply to you, you can make an appointment with one of our independent mortgage advisers. They can help you take out the right mortgage.

6. The difference between taking out a mortgage with and without advice

Taking out a mortgage without advice is often cheaper. Advice from an expert who looks at your personal situation costs money. However, it also requires more effort on your part, since you need to research all the options yourself. A mortgage adviser can help you find the right arrangements for your personal situation, giving you confidence that you have the most favourable mortgage for your needs. In the end, you may actually be better off financially than if you had arranged everything without an adviser.

When you do not receive advice and arrange your mortgage online yourself, you still pay arrangement costs. These also vary by provider, and you should expect to pay somewhere between €500 and €800.

Advantages of taking out a mortgage online	Disadvantages of taking out a mortgage online
Low arrangement costs	No advice, so you need your own knowledge.
Your own choices	You must complete a knowledge and experience test before arranging.
Fast process	You are responsible for any (negative) consequences.
No-obligation quote	You may overlook benefits, subsidies, or extras.
	Fewer mortgage options available.