Why do I need a mortgage consultant?

· Improve Your Understanding: A mortgage consultant provides expert guidance on how your mortgage works, explains risks, and helps you define your budget and monthly installments.


· Access to Multiple Options: Unlike banks that offer limited products, a mortgage consultant analyzes and compares loan conditions and interest rates from various money suppliers to find the optimal mortgage product for your individual circumstances, saving you time and money.


· Access to Exclusive Financial Products: Some money suppliers work only with professional intermediaries, giving your mortgage consultant access to special financial and insurance products that you may not have access to on your own.


· Expertise and Experience: Mortgage consultants have extensive experience with different clients in various financial situations, providing you with options and scenarios you may not have considered, potentially saving you thousands of euros during the fixed interest rate period.


· Specialized Money Saving Opportunities: Certain money suppliers offer "term interest" (looptijdrente) which can result in even higher savings, and this option is often available only when working with a mortgage consultant.


· Tax Deductible Consultation Fee: The consultation fee paid to a mortgage consultant is often deductible from your income taxes, making it a financially beneficial choice.


 Conclusion: Hiring a Mortgage Consultant for your mortgage needs can only be beneficial.


Are there additional costs to banks when hiring a mortgage consultant?

If you use a mortgage consultant's services, there are no additional costs involved towards the bank on top of the consultant's fee for arranging the mortgage. This means that the fee you pay to the mortgage consultant typically covers all the costs associated with the mortgage application process.


What's the maximum mortgage amount I can borrow?

After a consultation with a Mortgage Masters advisor, you'll gain valuable insight into your maximum mortgage capacity. As a general estimate, the maximum mortgage amount you can borrow is typically four to five times your gross annual income or 100% of the property value, depending on which one is lower. However, it's important to note that additional costs associated with the mortgage may not be covered and will need to be paid separately. Consulting with a mortgage advisor can help you understand and plan for these additional costs, ensuring you can afford the overall expenses associated with buying or refinancing a property.


Can I get a mortgage if I’m a self-employed expat?

Yes, self-employed expats can qualify for a mortgage, but the conditions may be stricter compared to employees due to the perceived higher risk of self-employment. Your mortgage will be calculated based on your net income over the last three years, and you may need to provide annual financial figures and income tax declarations as proof. If you have been self-employed for more than three years, it may be easier to qualify for a mortgage.


Can I get a mortgage if I have a temporary contract?

Yes, expats with temporary contracts can also qualify for a mortgage under certain conditions. Having a statement of intention from your employer about extending your contract to a permanent one can greatly help your mortgage application. This statement can be included in a standard employer's statement. If your employer is not willing to provide such a statement, the bank may look at your average income over the last three years to assess your mortgage eligibility.


Can I get a mortgage as a non-EU citizen?


Yes, it is possible to obtain a mortgage as a non-EU citizen. If you are a highly skilled migrant, similar regulations apply to you as to a European expat, although you may face stricter scrutiny from the mortgage provider. The maximum mortgage amount you can qualify for may vary depending on your individual circumstances.


What kind of documents do I need as an expat for a mortgage application?

To apply for a mortgage as an expat, you will need to provide the following personal and financial information, as well as information about the property being mortgaged:

  • Copy of your and your partner’s passport
  • Copy of your and your partner’s residence permit*
  • Recent copy of your salary slip
  • Copy of your employment contract
  • Original employer's statement
  • Tax department’s confirmation that you are covered under the 30% ruling*
  • Proof about your savings or assets*
  • Copy of the signed purchase agreement
  • Original valuation report

  *(if applicable)


What is the process of buying a house in the Netherlands?

  • Determine the maximum mortgage capacity and an indication of your monthly installments by consulting a Mortgage Masters advisor, so that you know in what price range you can look for properties.
  • Find a property within your budget by utilizing popular internet platforms such as www.funda.nl, www.jaap.nl and www.koopwoningen.nl. Alternatively, consider the expertise of a real estate agent, especially in the current competitive seller's market. We highly recommend hiring an agent to navigate the challenges. An agent will provide valuable insights on available houses that align with your preferences, handle appointment scheduling, property assessments, negotiations, and more. At Mortgage Masters, we have a vast network of professional real estate agents. If you need assistance in finding an agent, please don't hesitate to reach out to us.
  • Negotiations, bidding and property inspection: When making an offer on a property, you have the opportunity to negotiate and are not obligated to offer the asking price. You can submit your offer directly to the seller or through your agent. The seller may accept your offer, make a counteroffer, or reject it. If you need assistance in determining a competitive offer, we can arrange a professional property inspection on your behalf. This inspection will help you make an informed decision. Contact us to learn more and take advantage of our services.
  • Signing the purchase contract: Once you have reached an agreement on the price and conditions with the seller, you will proceed to sign a preliminary purchase agreement that includes contingencies. This agreement signifies your commitment to the purchase, with the option to withdraw only if certain conditions are not met, such as being unable to secure the necessary mortgage due to unforeseen circumstances. If the purchase contract does not include contingencies and you still wish to withdraw, you may be required to pay a minimum of 10% of the purchase price. However, according to Dutch law, you are entitled to a 'cooling-off' period of three working days. During this period, if you choose to withdraw from the purchase contract within three days of signing, you will not incur any financial obligations. For further guidance and information, feel free to contact us.
  • Appraisal and mortgage application: When purchasing an existing property, it is necessary to obtain an appraisal report (taxatierapport). This report plays a crucial role in determining your maximum mortgage amount and the applicable interest rate. Based on the appraisal, as well as your income and credit status, the bank will provide you with a mortgage offer. Once the mortgage terms have been agreed upon, a 10% deposit must be paid to the notary's account or alternatively, you can request a bank guarantee. It is important to note that if you choose to cancel the purchase agreement without a valid reason, the seller will retain the deposit. For further assistance and guidance throughout the appraisal and mortgage application process, please do not hesitate to contact us.
  • Transfer ownership and sign the mortgage deed at the notary:  In the final step of the process, the notary will facilitate the transfer of ownership of the house from the seller to you. After signing the transfer deed, you will proceed to sign the mortgage deed, officially establishing you as the proud owner of the house. Additionally, the notary will ensure that your mortgage is registered in the mortgage register as required.

What type of mortgages are there?

When it comes to financing your own home, you'll typically encounter two common types of mortgages: annuity and linear.

Additionally, there are also other types of mortgages. Each type of mortgage has its pros and cons, and it's important to carefully consider factors such as interest rates, repayment terms, and potential tax implications before making a decision. To determine the best option for your personal situation, it's recommended to consult with a knowledgeable mortgage advisor. Here's a brief overview:


Annuity Mortgage

The annuity mortgage is the most prevalent form of mortgage in the Netherlands. It has fixed payments for the duration of the fixed-interest period. Initially, these payments consist mainly of interest with a smaller capital repayment, leading to significant tax relief in the early years. This results in a large tax relief in the early years, making it suitable for those who anticipate having enough money or income later to make the repayments without relying on tax refunds.


Linear Mortgage/Straight Line (level repayment or linear repayment scheme)

A linear mortgage combines equal monthly capital repayments with decreasing monthly interest payments, resulting in a gradual reduction of the debt over time. While the initial payments for a linear mortgage may be higher than those of an annuity mortgage, the interest decreases each year, enabling faster debt reduction.


Combining Annuity and Linear Mortgage constructions

It's also possible to combine annuity and linear mortgage constructions. This approach ensures approximately equal net installments over a 30-year period.


Interest-only mortgage

An interest-only mortgage involves paying only the interest on the mortgage loan each month, without any included repayments. This means you won't accumulate assets to offset the mortgage debt. Instead, you are required to repay the entire loan when selling the house or at the end of the mortgage term.


What is National Mortgage Guarantee (NHG - Nationale Hypotheek Garantie)?

The Dutch government provides a valuable safety net for homeowners facing financial challenges due to circumstances such as work disability, unemployment, or divorce. The National Mortgage Guarantee (NHG) is a program that offers protection and benefits to borrowers. In 2024, the cost of NHG is 0.6% of the total loan, which can be easily offset by obtaining a significant discount on your mortgage interest rate, as lenders perceive lower risk. To qualify for NHG, certain requirements must be met. One crucial condition, starting from January 1st, 2024, is that the purchase price must not exceed €435,000 (including renovation costs). However, if you wish to invest in energy-saving measures, the NHG limit can be extended to a maximum of €461,100.


What is ‘term interest’ (looptijdrente) and how can I benefit from it?

 Term interest, or looptijdrente in Dutch, is the average interest rate that a borrower pays during the entire duration of their mortgage. As the ratio between the loan and the market value of the house improves over time, borrowers may move to a lower risk class, resulting in lower interest rates. It is important to calculate based on the term interest when taking out a mortgage, rather than just the initial interest rates, as it can affect the overall cost of the mortgage.


How does term interest work in practice?

A mortgage is a loan that requires repayment, consisting of a basic interest and a risk premium. The maximum mortgage amount you can obtain is based on the market value of the house, with the option to take out less than 100% of the value to reduce the risk for the lender. Risks are classified into different categories, and as you make monthly repayments, you gradually move into lower risk classes.

This results in a reduction of your risk premium and lower interest rates. Some lenders automatically lower your interest rate, while others require you to request it. Additionally, certain lenders allow you to lower your interest rate during the fixed interest rate period, while others provide the opportunity at the end of the period. Lower interest rates not only decrease your monthly installments but also enable you to save throughout the entire mortgage term.


What is a mortgage risk premium?

When obtaining a mortgage, the bank evaluates the risk associated with the repayment of the mortgage debt. To account for this risk, the bank may apply an additional interest surcharge of up to 0.5% on top of the base interest rate. This surcharge is typically imposed when the mortgage amount is relatively high compared to the value of your home, such as in the case of a 100% mortgage.

However, as you repay a significant portion of the mortgage or if your home value increases, you may move into a lower risk category, resulting in the potential cancellation or reduction of the risk premium. These savings can amount to significant sums, potentially saving you thousands of euros.If you have a mortgage with a National Mortgage Guarantee (NHG), you will generally avoid or minimize the risk surcharge altogether.


What is a building deposit (“bouwdepot”) and how does it work?

If you're planning to renovate your house, you have the option to include the renovation costs in your mortgage through a building deposit. This account, also known as a construction escrow, allows you to cover the expenses associated with renovating an existing home or constructing a new one. The building deposit is a separate account held with the same lender.


However, there are two important conditions to consider when requesting a building fund account:


1. The renovation must add value to your house, meaning it will increase its worth.

2. The renovation must be attached to your house and cannot be taken with you if you decide to move.


How does a building deposit work?


The lender provides the funds for the account, which are placed in a separate account. You can't directly withdraw money from this account. Instead, you need to keep all the receipts and invoices and submit them to the lender, who will then pay the bills on your behalf. Alternatively, if you choose to pay the bills yourself, the bank will reimburse you.


The maximum amount you can borrow for a building fund account is typically 100% of the post-renovation value of the home. However, it's important to ensure that you can afford this amount based on your income. The valuation report will include both the pre-renovation and post-renovation values. If you're considering investing in energy-saving facilities, you may be eligible for financing up to 106% of the market value after renovation.


The type of renovation you're planning will affect the maximum mortgage amount:


• A fixed-value renovation: Costs for a fixed-value renovation can be fully financed in your mortgage, with the value after renovation being the starting point. Examples of fixed-value renovations include dormer installations.


• Modernization: These renovations are usually based on personal taste, such as installing a new kitchen or renovating a bathroom. In such cases only 65% of the renovation costs are co-financed by the mortgage and you can then pay the remaining amount with your own resources.


What are the costs of buying a house?

 When purchasing a house in the Netherlands as your primary residence, it's important to consider the additional costs associated with the mortgage. Some of these costs can be deducted from your taxes, while others cannot.



Deductible cost are:

  • Notary’s fee for the mortgage deed (hypotheekakte) and registration
  • Valuation report
  • National Mortgage Guarantee (NHG) fee
  • Fee for mortgage consultancy
  • Interest payments on your mortgage (annual costs)
  • Costs for early repayment of a previous mortgage

Non-deductible costs:

  • Notary’s fee for the purchase deed
  • Notary’s fee for the transfer deed (Leveringsakte)
  • Transfer tax (overdrachtsbelasting)
  • Real estate agent's fee (if applicable)
  • Costs of the technical inspection report
  • Bank guarantee

What does K.K. and V.O.N mean next to the price of the house?

K.K. (Kosten Koper) literally means "buyer's costs" and it indicates that all costs related to buying a house will be paid by the buyer. These costs typically include the notary fees, transfer tax, real estate agent fees, and other associated expenses.


On the other hand, V.O.N. (Vrij op naam – “free on name”) means that the purchasing costs are covered by the vendor. This is commonly applicable to newly built properties, where the developer or builder assumes the expenses of the transaction.


Can I make extra repayments?

If you have extra savings and want to make additional repayments on your mortgage, you can typically do so up to 10% of the total loan per year without penalty.


However, if you plan to sell or refinance your house, you will need to pay off the remaining debt in one go, which may incur administrative and notary fees. While there's usually no penalty for selling, there will be an administrative fee from the bank and a notary fee to remove the mortgage from the Land Registry. Refinancing also involves extra costs.


Repaying your full mortgage typically involves no extra costs in the following cases:

  • When your fixed interest period ends
  • In case of variable-interest mortgage
  • In case one of the mortgage holders dies

The repayment conditions can vary by bank, so it's best to consult a mortgage advisor before making a decision.


What kind of tax implications should I count on when taking out a mortgage?

When taking out a mortgage, it's important to consider the tax implications. Here are a few key things to keep in mind:

  • Mortgage interest payments can be deducted from your taxes for up to 30 years, as long as you use the property as your main residence.
  • Capital gains on your property are tax-free, but if you sell your house and use the profit to buy another property, the Dutch tax department expects you to invest the overvalue in the new property. If you don't, your new mortgage may be partially non-deductible.
  • If you leave the country but keep your property, you won't be eligible for tax-deductible mortgage interest payments as a non-resident taxpayer. Make sure the rent you receive can cover both costs and interest.
  • The 30% ruling can improve your chances of getting a favorable mortgage deal.

Can I rent my purchased property?

Renting out a purchased property is generally not allowed, except in special circumstances for a limited period of time and only with the consent of your mortgage provider.


To elaborate further, most mortgage providers in the Netherlands have a clause in their mortgage agreement that prohibits the homeowner from renting out the property without their permission. However, in certain circumstances, such as moving abroad temporarily for work or study, the mortgage provider may allow you to rent out your property for a limited period of time.


It is important to note that renting out your property without permission from your mortgage provider can result in penalties, such as higher interest rates or even foreclosure of the property. Additionally, if you do rent out your property, you will need to pay income tax on the rental income. It is recommended to consult with your mortgage provider and a tax advisor before considering renting out your property.



Mortgage Masters

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3641 SR Mijdrecht


Office:          +31 297 257 608

Mobile:        +31 6 519 148 91

Whatsapp: +31 6 519 148 91

Email:           info@mortgagemasters.nl


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