Mortgages in the Netherlands: Getting a Home Loan as an Expat

Home loans in the Netherlands provide expatriates accessible pathways to property ownership with competitive rates and favorable terms. handle the mortgage process as an expat in Dutch housing markets.

Can Foreigners Get Mortgages in the Netherlands?

Technically, anyone with a residence permit, temporary or permanent, has the same formal rights to apply for a mortgage. However, being new to a job, lacking a permanent contract, self-employed, earning a low income, or being a non-EU citizen can make securing a loan more difficult or limiting the loan-to-value percentage available.

Generally, you'll need:

Basic requirements:
- Valid passport
- BSN (citizen service number)
- Proof of permanent employment in the Netherlands or proof of income
- For employees, temporary workers, or PhD students: employer statement (werkgeversverklaring)
- Six months' residence in the Netherlands (some providers only)
- Three years of tax returns and accounting (for self-employed residents)

Importantly, if self-employed for less than three years, mortgage approval is very difficult. EU and non-EU citizens have equal formal rights, though non-EU citizens face stricter requirements. Banks often won't provide non-permanent residents with mortgages covering 100% of the purchase price if it exceeds the National Mortgage Guarantee threshold (€450,000 in 2025).

The EU's Mortgage Credit Directive (2015) complicated matters for internationals earning in non-EU currencies, as banks must absorb currency fluctuation risks. However, banks like ABN AMRO found solutions: they now count only 90% of non-euro income when assessing maximum mortgage amounts. Getting mortgages for second homes to rent is very difficult under current regulations.

Understanding Dutch Mortgage Interest Rates

Mortgage interest rates in the Netherlands depend on two factors: the fixed-rate term and the risk category, which is based on loan-to-value (LTV) ratio, the loan amount versus property value. Lower LTV means lower interest rates. You choose between fixed or floating rates. Floating rates are often lower, but carry the risk of increasing.

For current rates, check ABN AMRO's website for the latest figures. If your property value increases, you may qualify for a lower interest rate by requesting a WOZ value valuation (the official municipal property tax assessment) from your municipality.

How Much Can You Borrow?

As a rough guideline, you can borrow up to five times your gross salary, though dual-income households typically qualify for more. If your home includes renewable energy systems, you can borrow up to 106% of property value. The government limited loan-to-value to maximum 100% of property price in 2018 (previously 101%), meaning additional costs must come from savings.

Good news: if you qualify for the 30% tax ruling, you can borrow significantly more. Online calculators from services like Hypotheek-rentetarieven, Hypotheek Platform, and Independent Expat Finance provide estimates, but always consult with a provider or mortgage advisor for accurate figures.

Types of Mortgages Available

The two most common mortgages in the Netherlands are:

Linear mortgage (lineaire hypotheek): You repay a fixed amount monthly covering interest and capital. As you pay down the loan, interest decreases. Only linear and annuity mortgages qualify for income tax deductions.

Annuities mortgage (annuïteiten hypotheek): You repay the same fixed amount monthly. Initially, you repay more interest and less capital; gradually you pay more capital and less interest. This structure allows larger initial tax deductions.

Other mortgage types include interest-only mortgages (banks only permit under special circumstances), credit mortgages (like a bank account where you deposit and withdraw), and savings mortgages (linked to a savings account, paying back the mortgage in full at the end).

Green Mortgages for Sustainable Homes

If your new home contributes to a greener lifestyle, you may qualify for a green mortgage (duurzaam wonen hypotheek) with reduced rates. To be eligible, you must:

- Buy a home with energy label A or B
- Renovate a home to energy label A or B and register the new label within two years
- Buy a newly built home

Various schemes provide access to green mortgages. Check with your local bank or ABN AMRO's website for details.

How to Apply for a Mortgage

You can arrange mortgages directly with lenders (typically larger banks) or through mortgage advisors (hypotheekadviseur). The application process for expat mortgages generally mirrors that for Dutch nationals.

Direct from banks:
- ABN AMRO (offers expat mortgages, English-language mortgage section available)
- ING (English and Dutch)
- Rabobank (Dutch only)
- SNS (Dutch only)

Increasingly, pension funds, insurance companies, small banks, and foreign mortgage providers offer competitive rates.

Through mortgage advisors: Advisors act as intermediaries between you and mortgage providers, offering valuable guidance, especially if you don't speak Dutch or are new to the property market. International-friendly advisors include Hypotheek Platform, Independent Expat Finance, and Klår Finance.

The National Mortgage Guarantee (NHG)

The NHG guarantees mortgage repayment even if you become unable to pay. It's only available for Dutch mortgages up to €450,000 (2025). If unable to repay, the NHG ensures you're not liable for amounts over your property value when sold, and your lender gets repaid in full.

Example: if your home sells for €300,000 but your mortgage is €350,000, you're not liable for the €50,000 difference. The NHG reduces lending costs; lenders typically offer NHG participants rates 0.5% lower. The application fee is 0.4% of mortgage value (€200,000 mortgage = €800 fee).

Mortgage Costs and Fees

Beyond the property price and repayments, several costs apply, typically calculated as percentages of property value plus VAT:

Mortgage fees:
- Mortgage advice (Hypotheekadvies): €100-€3,500
- Mortgage contract (Hypotheekakte): €500-€1,000
- Notary charges (Notaris): €1,000-€3,000
- NHG: 0.4% of mortgage value
- Valuation fee (Taxatierapport): €400-€800
- Transfer tax (Overdrachtsbelasting): 2% of purchase price
- Insurance costs

Property tax in the Netherlands is calculated on deemed rental value (WOZ value), determined by each municipality (typically 0.1-0.3% of value). However, those with NHG mortgages can effectively lower interest rates by entering lower-risk mortgage categories.

Tax-Deductible Costs

As a Dutch taxpayer, you can claim tax refunds on mortgage interest payments, provided the mortgage is a capital repayment mortgage (not interest-only) and the property is your primary residence. Tax-deductible costs include valuation fees, mortgage broker fees, administrative charges, notary fees, NHG fees, and mortgage interest itself.

If you rent your property, you're no longer eligible for mortgage payment deductions. All tax deductions end if you cease being a Netherlands resident. The 30% ruling, a tax exemption for internationals hired abroad, positively impacts mortgage eligibility and amounts, and significantly reduces income tax, absolutely worth discussing with a mortgage adviser.

Property Insurance Requirements

You'll likely need proof of homeowners insurance (woonhuisverzekering) when getting a mortgage. Some providers offer discounts for taking both mortgage and home insurance with them. Standard policies cover fire, storm, flood, and theft, though criteria vary. For apartments, the Association of Owners (Vereniging van eigenaren, VVE) generally arranges and shares insurance costs equally.

Other insurance affecting your mortgage includes contents insurance and life insurance. High-value contents policies (kostbaarhedenverzekering) are mandatory for rare or expensive possessions. Many insurers offer discounts for BORG certificates (proving burglary protection and certified security equipment).

Making Extra Mortgage Payments

Most banks allow annual extra repayments of 10-20% of outstanding mortgage without penalties. With interest-only mortgages, extra payments may carry penalties. However, allowing extra payments can provide real savings over time through longer-term lower interest rates.

Refinancing Your Mortgage

If you already own property here, refinancing can reduce mortgage costs. A new mortgage repays your existing mortgage in full, letting you start over with a different plan. Independent mortgage advisers have access to all Dutch lenders and can compare rates and conditions for the best deal.

Pros of refinancing: Lower monthly payments through shopping for better rates, potential additional discounts from increased property values and lower loan-to-value, reduced mortgage terms (30-year mortgages paid in 20 years), transferring from variable to fixed-rate mortgages for security, and accessing home equity for major expenses.

Cons of refinancing: Costs, notary and intermediary fees plus lender compensation for interest losses, may offset savings. Refinancing to access home equity can create escalating debt if you're not careful.

My Perspective After Six Years

After six years in the Netherlands, I've learned that getting a mortgage as an expat is achievable with proper preparation. Understand your finances, work with professionals who understand expat situations, and explore all available options. The Dutch mortgage system is transparent and well-regulated. With competitive interest rates and various mortgage types, you'll find options suited to your financial situation.