Mortgages for expats in the Netherlands

The main drivers are a persistent shortage of supply, rising incomes and relatively stable borrowing costs. Forecasts suggest national price growth of 5 to 9 percent in 2025 and a slower but still positive increase of around 4 to 7 percent in 2026. Although demand is strong, affordability remains difficult for many, especially first-time buyers, because the gap between supply and demand is still wide.

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.

Buying a home in the Netherlands as an expat is possible, but the process is not easy. Dutch banks and mortgage brokers follow strict rules because they will want to be sure you can stay and work in the country long enough to repay your loan. The following steps outline what to expect when applying for a mortgage in the Netherlands.

Step 1: Do i qualify
You need to be registered in a Dutch municipality with a citizen service number (BSN). EU citizens usually qualify under the same terms as Dutch nationals. Non-EU citizens often need a valid residence permit and proof of long-term stay. Some banks also require that you have lived in the Netherlands for several months before applying.

Step 2: Check how much you can borrow
Mortgages in the Netherlands normally cover up to 100 percent of the property value, but not the additional costs such as transfer tax, notary fees, valuation and advisory fees. You should calculate how much you can borrow based on your income, job contract and debts, and then make sure you have savings for the extra costs. Many banks offer online calculators to give a first indication. On Expat Guide we have a Mortgage Calculator to give you an idea. 

Step 3: Collect the documents
Lenders will want proof of income and stability. If you are employed, this means your contract and recent payslips. A permanent contract is best, but a temporary contract can also work if your employer provides a statement of intent to renew. If you are self-employed, you usually need two or three years of income history and tax returns. Other documents include a copy of your passport or ID, residence permit if relevant, bank statements and often proof of savings.

Step 4: Choose a lender or mortgage broker
You can apply directly with your Dutch bank or use a mortgage broker who compares multiple lenders. Brokers who specialize in expat mortgages can be helpful if you have a foreign income or a more complex situation. Interest rates and terms vary, so it pays to compare offers carefully.

Step 5: Get a pre-approval from your bank or mortgage provider
A pre-approval gives you an idea of the maximum mortgage you can obtain. This helps when making an offer on a house, as sellers take buyers more seriously if financing looks realistic.

Step 6: Make an offer on a house
Once you find a home, you make a bid through the selling agent. If accepted, you sign a purchase agreement. If you need a mortgage make sure you add the rule onder voorbehoud van financiering, this will give you time to arrange your mortgage formally and when you can't, you don't have to pay. In the negotiation. 1 or 2 months is fair.

Step 7: Finalize the mortgage application
At this stage, you submit all required documents to the lender. The bank will review your application and may request additional paperwork. They also require a valuation report of the property. If everything is in order, you receive a mortgage offer, which you sign to confirm.

Step 8: Complete the purchase at the notary
The final step is the transfer of ownership at a Dutch notary office. On the day of transfer, you sign both the mortgage deed and the property deed. The notary ensures the funds are transferred, and once registered, you officially become the owner.

Step 9: Move in and enjoy!
After the notary process, the keys are handed over. Your mortgage repayments start the following month, usually fixed at an agreed interest rate for a set number of years.

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%.