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How to get a mortgage in the Netherlands

If you’re looking to buy a house in the Netherlands, the process can be a bit complicated. Mortgage lender requirements, bank policies and tax rules are often a maze. What are the rules and when can you apply for a mortgage? If you don’t get paid in euros, will you still be able to get a Dutch mortgage? With this guide on how to get a mortgage in the Netherlands you’ll quickly know if your personal situation makes it possible to apply for a mortgage.

Would you like to know if your personal situation gives you access to a mortgage in the Netherlands? Please contact us for a free mortgage appointment.

 

Basic requirements on how to get a mortgage in the Netherlands

There are a few basic requirements which apply to every applicant for a Dutch mortgage. You have to work and live in the Netherlands, just like the Dutch natives. You will have to provide the following information to the mortgage lender:

  • Your marital status
  • Gross annual income
  • Savings
  • Debts or loans
  • The value of the property
  • Your employment agreement

Calculate your maximum mortgage here

 

Getting a Dutch mortgage as an expat

The basic requirements are the same for Dutch natives and expats. However, there might be a few extra requirements you need as an expat.

  • A citizen service number. Like Dutch natives, you’ll need a citizen service number (BSN). They receive it when they’re born, you will receive one when you register at the municipality. If you’re not an EU/EEA citizen, you’ll need a residence permit (or the Dutch verblijfsvergunning) to be able to apply for a mortgage.
  • A 6 month stay. Some mortgage lenders might ask you to provide proof you have been living in the Netherlands for at least 6 months.
  • Income in Euros. There is a possibility that a bank will ask you to provide a payment slip in euros.
  • A permanent employment contract. This kind of contract provides the mortgage lender with a certain kind of security, so they might have a permanent employment contract as requirement.
  • Additional requirements if you’ve been a citizen in the Netherlands for less than 6 months and/or if you’re a newly hired employee.

 

How to get a mortgage in the Netherlands without those requirements?

There’s a chance you might not be able to provide the mortgage lender with all of the above. We’ve put together a list of frequently asked questions and situations to help you get that Dutch mortgage anyways.

Expats Amsterdam provides a mortgage for all lenders who are active in the Netherlands. This allows us to arrange a mortgage even if you have only just been employed by the employer. Feel free to contact us to discuss your situation. Free mortgage appointment available.

 

 

  1. I am a newly hired employee

If you are a newly hired employee in the Netherlands, you’ll still have a good chance of getting a mortgage. First your probationary period must have expired. From the day it has been expired, the mortgage lender can give an approval on your application for a mortgage. For newly hired employees, it is possible to receive a mortgage if they show the lender a letter of intent.

Your employer can give you this letter, which states that your contract will be renewed if the situation stays the same. So if you keep working and doing your best and the company doesn’t have any financial problems, there would be no reason not to keep you. This statement is valuable for the mortgage lender, because they see this as commitment and trust from the company in you. The company is very likely to hire you indefinitely after the temporary contract has expired.

 

 

  1. My employer does not want to give a letter of intent

Some employers are just very careful with the letter of intent (even when there is no binding contract if they sign). If you can’t receive a letter of intent but you are already working in the Netherlands for 2 years, you can still get a mortgage. A bank or mortgage lender can provide you a mortgage based on your average income during those 2 years you have been working. The average income does not have to be from one employer, as long as you’ve been working in the Netherlands.

If you have an indefinite contract from your employer, there’s no need for a letter of intent. You can get a mortgage as soon as your probationary period has expired. With an indefinite contract there is no need to be employed for at least 2 years. The contract is enough proof for the mortgage lender that your company wishes to keep you for many years to come.

 

  1. I am self-employed

If you are self-employed, you don’t have a letter of intent or indefinite contract to show a lender. However, there is still a possibility to receive a Dutch mortgage: if you show your income history up until two or three years back (preferably three, and some lenders might have this as requirement). Make sure you keep your administration up-to-date and pay your taxes so the lender can get a clear overview of your financial stability.

 

  1. I don’t get paid in euros

In the situation where you are paid in a currency other than in euros, it is possible to still be able to obtain a mortgage. There are three well-known situations why this might be the case:

My employer is based outside the Netherlands

If this is the case, it is important that you register yourself as a citizen of the Netherlands. If you can demonstrate that you can continue to work for your employer while being a citizen of the Netherlands, even though your employer is abroad, it is possible to receive a mortgage.

  • Important to know: If you get payed in a foreign currency (no euros), a 10% reduction in income will be applied to absorb fluctuations in the currency.

My employer is based in the Netherlands

Your employer can pay you in a currency other than euros despite the fact that it is based in the Netherlands. It is still possible to get a mortgage, as long as you’re a registered citizen and you have a letter of intent, or have worked here for 2 years.

  • Important to know: If you get payed in a foreign currency (no euros), a 10% reduction in income will be applied to absorb fluctuations in the currency.

I have my own business abroad

If your income depends entirely on your own business abroad, there are unfortunately no possibilities for a mortgage. However, you can also start a business in the Netherlands. After 1 year you can get a hypothesis.

 

How to get a mortgage in the Netherlands

Expats Amsterdam provides a mortgage for all lenders who are active in the Netherlands. This means that even if you are paid in a foreign currency, have no indefinite contract or are self-employed, we can arrange a mortgage for you. Feel free to contact us to discuss your situation. A free mortgage appointment is available so we can look at your situation together and discuss the solution that works best for you.

Maximum mortgage loan drops in 2015

Next year the amount of the maximum mortgage will drop.
This also was the case in 2014.
In the calculation will be looked at the purchasing power of different income groups.
After calculating this,  the amount a household can spend at a mortgage will decline.

What you can do ?

If you are busy with the buy of a house and you need a mortgage soon, apply this year for a mortgage offer.
If you get an offer in 2014 you can still loan under the conditions of 2014 instead of 2015.
Because more people will do this, banks already gave up date’s when you have to applied for your mortgage to get it under the conditions of 2014.

How big are the differences ?

It depends of your income, if you have more people in your household that have an income and the mortgage rates.

Example 1
There is one income of € 55.000 gross and the mortgage interest rate is 3%.

2014 € 314.275 maximum
2015 € 296.485 maximum

Example 2
There is one income of € 55.000 gross and one of € 25.000, mortgage interest rate is 3%.

2014 € 478.825 maximum
2015 € 444.225 maximum
You can see that there are big differences depending of your situation. If you need the conditions of 2014 be quick
because you will have around 2 weeks to apply for a mortgage.

If you want to calculate what you can loan in 2014 go to the mortgage calculators.
If you need advice or if you looking for a company that can apply for your mortgage feel free to contact Expats Amsterdam.