Do I need a mortgage advisor when buying a house in the Netherlands?

When it comes to buying a house in the Netherlands, there are many steps that you may feel qualified to do by yourself: go to a viewing, find a potential property or even manage the bidding process!

But if there’s one thing that’s almost always necessary — it’s a mortgage advisor. Here’s why. 

Is it compulsory that you have a mortgage advisor in the Netherlands? 

Before we begin, let’s start by answering the all-important question. No, it is not technically compulsory that you have a mortgage advisor when you decide to buy a house in the Netherlands — but good luck without one. Here’s why:

Firstly, your mortgage advisor will translate the paperwork involved in buying a house

Why do we say good luck? Well, if you’re reading this, you’re most likely an international. And if you’re an international, then it’s fair to assume that your Dutch may not be up for the challenge of translating Dutch mortgage paperwork. 

Your mortgage advisor will take that mind-bending mortgage jargon and tongue-twisting Nederlands, and distil all that information into something digestible. 

And when we say translate, we mean literally. Specialised expat mortgage consultants such as Melissa Zahaf at Expat Mortgage Platform will translate all the important documents into English for you. That way, the entire process can be done in an international-friendly way. 

A mortgage advisor will help determine your borrowing power 

If your Dutch is up to the standard of tackling tricky paperwork we salute you! But you also need to determine how much it is you can actually put down on a house.

If you’re a mathematical genius then we also congratulate you — (rolling eye emoji) — but it truly is best to turn to a mortgage advisor when determining how much actual borrowing power you have. This is because there are a number of factors that will factor into the calculation of your mortgage, such as:

  • Your eligibility for a mortgage: For example, are you properly registered in the Netherlands? Do you have any required Visas etc. 
  • Whether you have student debt: student loans will play a significant role in determining your mortgage. Even if you have plenty of savings, with student debt looming in the background, your borrowing power will be significantly reduced.
  • Your work contract: The banks like to know that you have the ability to meet your monthly payments — and what says stability like a permanent work contract? While of course, you don’t need a permanent contract to get a mortgage, it certainly helps. 
  • Which bank you opt to go with: Mortgage advisors can often have a good rapport with certain banks. Choosing a bank that has a good relationship with your chosen advisors may lead to better interest rates. 

When you decide to work with a mortgage advisor, it’s important that you go for mortgage advisors who are certified financial advisors. Services such as Expat Mortgage Platform offer highly skilled financial advisors — as well as this handy mortgage calculator tool!  

They will mediate between you and your mortgage lender 

Once you have decided who it is you want to lend your money from, a mortgage advisor will step in and use their expertise to mediate with the chosen lender. They will negotiate, for example, the interest rate at which you should pay your mortgage based on your situation.

Note: Mortgage advisors in the Netherlands usually cost between €2000 and €3000 for their services. If you were doubting about soliciting the help of a mortgage advisor, it is worth considering that their skills may get you a better interest rate than if you had negotiated with the banks yourself — meaning you could actually save yourself money in the long run. 

Your advisor can give you advice on which type of mortgage is best for you

Hands up if you thought getting a mortgage in the Netherlands was a lot more simple than it actually is. Turns out there are several types of mortgages that you can get in the Netherlands! While this could warrant an entire article in itself, your two main options are: 

An annuity mortgage (Annuiteiten hypotheek)

With an 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 you will mainly repay your loan.

A linear mortgage (lineaire 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. Costs are high at the beginning but they will gradually decrease. 

Your mortgage advisor will lay out your options and use their expertise to advise on which type of mortgage is best for your situation. This is also one of the things Dutchies definitely need help with as well.

photo-of-couple-moving-into-netherlands-hosue
A mortgage advisor takes care of the hard stuff — so you can focus on the move! Image: Wavebreakmedia/Depositphotos

Your mortgage advisor can show you how to make the most of your mortgage

Once you have made it through the hard part — you’ve chosen and secured your mortgage — your mortgage advisor can continue to help you make the most of it. And YOU can pat yourself on the back! 👏

A mortgage is often more than just a mortgage. There are a number of benefits and ways to save money that you can organise through your mortgage advisor, such as:

The bouwdepot: A bouwdepot is essentially a loan that you can arrange with the help of your mortgage advisor. You can use it to fund the refurbishment or renovation of your house should you decide that, for example, you want a brand spanking new kitchen.

Refinancing your mortgage: Your mortgage advisor can also help you refinance your mortgage down the line if you decide that you want to avail of better interest rates at a different bank — they will also advise you as to whether or not this is actually a good move! 

A mortgage advisor can be thought of as the midwife who helps with bringing your dream of homeownership into the world. While you may be able to go through the process without them, it certainly helps to have someone’s hand to squeeze and coach you through the tough parts — if that graphic analogy makes sense. 

Looking for an international-friendly mortgage advisor? Mortgage advisors such as Expat Mortgage Platform are the experts when it comes to helping internationals in the Netherlands find their dream home — if the name didn’t already suggest that. 😉 
Unsure of whether their services are for you? Reach out now and sign up for a free consultation with Melissa Zahaf and her colleagues with no strings attached. 

Have you worked with a mortgage advisor in the Netherlands before? Tell us about your experience in the comments below!

Feature Image: Bernardbodo/Depositphotos

Sarah O'Leary 🇮🇪
Sarah originally arrived in the Netherlands due to an inability to make her own decisions — she was simply told by her mother to choose the Netherlands for Erasmus. Life here has been challenging (have you heard the language) but brilliant for Sarah, and she loves to write about it. When Sarah is not acting as a safety threat to herself and others (cycling), you can find her sitting in a corner of Leiden with a coffee, trying to sound witty.

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