Mortgages for expats in the Netherlands
Buying a property is one of the biggest financial and emotional decisions in your life. Especially when you buy a house in another country like the Netherlands where language and lack of connections could make it more challenging. What do you need to do to get a mortgage? In this section we explore your options.
We explore in this section
House prices in the Netherlands
House prices in the Netherlands have experienced significant fluctuations in recent years. After a slight decline of 0.6% in 2023—the first in a decade—the market rebounded strongly in 2024, with prices increasing by approximately 8.5%. This upward trend is expected to continue, with forecasts predicting a further 7% rise in 2025.
Several factors contribute to this sustained growth. Rising wages, declining mortgage rates, and relaxed lending standards have bolstered buyers' confidence and purchasing power. Additionally, the persistent shortage of housing supply continues to drive competition among buyers, leading to increased instances of overbidding. Despite high interest rates, these dynamics have propelled house prices to unprecedented levels, with the average purchase price for existing homes reaching €461,931 in November 2024.
Can i get a mortgage in the Netherlands?
The good news is that having a different nationality is no longer an obstacle getting a Dutch Mortgage. Further you must live and employed/self-employed in the Netherlands and the house you want to buy is located in the Netherlands. You will need a BSN Number (Tax Identification Number).
The amount of money providers widens considerable when you lived in the Netherlands longer and when you work history is long and stable. Contacting your Dutch bank and inform about the possibilities is a good start.
What type of Dutch mortgages are there?
There are a wide variety or mortgages to choose from but the most common ones are annuity mortgage and linear mortgage.
Annuity mortgage – Annuïteitenhypotheek
With annuity mortgage you will pay the same amount over the whole period of the mortgage. In the beginning, this amount is mainly interest and only a small part of the loan. Gradually, this changes, so that at the end of the mortgage.
Linear mortgage - Lineare hypotheek
With a linear mortgage the amount of debt that you pay remains fixed every month. On top of the debt, you will also pay interest, which will be the highest at the beginning of the mortgage since you haven’t paid anything back yet. Your monthly payments start higher, but they will gradually decrease.
What is National Mortgage Guarantee?
The Dutch National Mortgage Guarantee scheme is unique in Europe. It will help you take out a mortgage that will be affordable and responsible from the start. When you run into problems meeting your payments due to circumstances beyond your control, the National Mortgage Guarantee can provide a safety net for you and your mortgage lender.
The National Mortgage Guarantee is referred to in Dutch as ‘NHG’ or ‘Nationale Hypotheek Garantie’.
If you have an NHG-backed mortgage and can no longer pay your mortgage due to specific circumstances beyond your control, you and your mortgage lender will contact NHG.
This happens when you lose your job, relationship ends, disabled from work or when you partner dies.
How does mortgage interest deduction work (hypotheekrenteaftrek)?
In the Netherlands, the mortgage interest deduction (hypotheekrenteaftrek) is a tax incentive that allows homeowners to deduct the interest they pay on their mortgage from their taxable income. This deduction can significantly reduce the amount of income tax a homeowner has to pay.
When can i apply?
- The property must be your primary residence (main home).
- The mortgage must be used to purchase, improve, or maintain this residence.
- The mortgage must be repaid within 30 years and repayments must be made in a way that reduces the principal (annuity or linear mortgage).
How does it safe me money?
- You can deduct the interest paid on your mortgage from your taxable income.
- The amount you can deduct is limited by the marginal tax rate, which has been gradually reduced in recent years. For example, in 2024, the maximum deduction rate is set at 36.97%.
Recommended providers
De Financiële Alliantie
At De Financiële Alliantie, we understand the complexity of international finances. We provide guidance and tailor-made solutions to assist you in understanding and managing your mortgage (and all other financials and insurances) in the Netherlands. We are here to support you at every step of the mortgage. We are 100% independent and our meetings are without any obligations!
ABN Amro
ABN AMRO Bank N.V. is a Dutch bank with headquarters in Amsterdam and is the third-largest bank in the Netherlands. Check the website for a mortgage calculator and more information about their mortgages.
AEGON
Aegon N.V. is a Dutch multinational life insurance, pensions and asset management company headquartered in The Hague, Netherlands.
Univé
Univé is a cooperative insurance company and mortgage provider in the Netherlands. Univé presents itself as a nonprofit insurer, to express that making profit is not important and therefore has cheaper products.
Expat Mortgage Platform
Expat Mortgage Platform, also known as EMP, is the 100% Independent, Professional & Reliable Mortgage Advisor for all Expats in the Netherlands