Mortgage Calculator for the Netherlands
Buying a house in the Netherlands can be quite a task. Whether you are already living in the Netherlands or planning on moving to the Netherlands in the future, it is wise to look into the different aspects of buying a house and getting a mortgage.
Most expats find buying a house and getting a mortgage in the Netherlands very hard, but there is no reason to be discouraged. To apply for a home and buy your dream home it is important to know your exact mortgage capabilities. What is the repayment period, what is your max mortgage and which documents are required? We will help you in the process.
Get a Home Loan the Netherlands
If you are moving to the Netherlands or already living here as an expat you are probably wondering if it is possible to buy property. The answer is: yes. You don’t have to be a Dutch citizen to buy a property or get a mortgage. But it’s good to be aware of all the conditions and consequences.
If you are new to your job or self-employed you might find it harder to get a mortgage. If you have a non-EU nationality or if you have a low income it can also be a lot harder. Each bank has different requirements, but there are a few general conditions:
- Lived in the Netherlands for at least six months
- Valid passport
- Citizen service number (BSN)
- (Permanent) employment in the Netherlands
- Statement from your employer (werkgeversverklaring)
- Proof of income
- If you’re self-employed: at least three years of income tax returns and accounts
How much can I borrow in the Netherlands?
If you are currently employed in the Netherlands and consider buying a house as an expat, the first thing you probably want to know is how much money the bank will lend to you. The amount you will be able to receive depends on your gross income and the value of the property you wish to purchase. The available different types of home loans will affect this number.
On average you are allowed to spend 30% of your monthly earnings on living costs. The mortgage lender will look at the possibilities with your gross year income. So if you are an expat, you can fill in the expat mortgage calculator.
Tip: the gross year salary includes holiday allowance, thirteenth month and potential set allowances and bonuses. Non-recurring or variable bonuses and extras are unfortunately not included. If you have a partner, his or her income will also contribute to your mortgage. This will not be for the full 100% of his or her income.
All mortgage lenders or banks will use credit scoring methods. They will check the BKR (Bureau Credit Registration) to see if you have any outstanding loans and more importantly, if you have never defaulted on a loan. If you are from or have lived in Germany, Austria, Belgium or Italy, the lender will also do a credit check in that country.
The expat mortgage interest also has an effect on the maximum amount of your mortgage if you live in the Netherlands. Generally, this means that with a lower interest you will get a higher mortgage. Often, the shorter rate fixation period has a lower interest rate. The same goes for a mortgage with NHG, this often leads to a lower interest rate.
Beware! Are you choosing a rate fixation period shorter than 10 years? Most mortgage lenders will calculate your mortgage with a much higher reference rate. This means you will pay a lower mortgage interest but it also means your maximum mortgage is limited.
Comparing banks and mortgage lenders
When you are considering buying a house in the Netherlands it is important to gather some information first. Besides the mortgage calculator it is also useful to find out what the current mortgage rates are from all the mortgage suppliers in the Netherlands. These rates can change from day to day.
Aside from the rates, the conditions of a mortgage also vary depending on the mortgage supplier you choose. You are able to request a comparison between several banks and mortgage lenders made by an independent mortgage broker without any obligations. This mortgage broker has insights in the different possibilities at for instance Rabobank, ING, Argenta and ABN AMRO.
The broker will also compare your options with the SNS Bank and Aegon or other mortgage lenders. When going directly to a bank you will have to pay a fee on top of your mortgage. When using a broker you do not pay a fee for the bank, you only pay a fee for the broker. At our website you can use the Dutch expat mortgage calculator.
Keep in mind that the official deeds must be translated to a language you are fluent in by law. This can incur additional costs.
Mortgage interest is tax deductible
When you have a mortgage in the Netherlands, the home loan interest rates are tax deductible. However, you do have to meet a number of conditions if you want to profit from the tax benefits. If you own a home you can deduct the interest from your taxable income in box 1.
However, you do have to meet a number of conditions. Other costs that are associated with the purchase of your house like valuation fees and notary fees, are also deductible.
The terms and conditions of the mortgage interest deduction:
- The mortgage is for the home that is your main place of residence. Deducting interest for the purchase of a holiday home is not possible.
- The mortgage will be repaid within 30 years.
- When you sell the house and have a surplus value you will have to use this surplus to buy a new home.
Provided the new home is bought within three years after selling the old one. Otherwise the mortgage interest will not be deductible.
Beware that owning a home is not only profitable when it comes to the taxes. Before you deduct the interest of your mortgage a part of the home’s value will also be added to the taxable income. This is known as the imputed income from homeownership. The amount that will be added to your taxable income is the percentage of your home’s value for the purposes of the Dutch Valuation of Immovable Property Act (WOZ-waarde).
The home loan calculator
Would you like to calculate the loan amount you can get? On our website you will find an expat mortgage calculator. It gives an indication of the mortgage you can get. To find out more about the conditions and options you can make an appointment with one of our independent mortgage brokers. For example if you really want to know the different loans offered, or the most attractive interest rates. Want to buy a house? Try our dutch mortgage calculator.
Interested in calculating you maximum mortgage to buy a house in the netherlands?