When applying for a mortgage in the Netherlands, one crucial factor that lenders take into consideration is your student debt — and yes, this includes any foreign student debt.
Regardless of where in the world you built your student debt, it will be factored into your Dutch mortgage application. However, this doesn’t mean an end to your homeowning dreams.
Student debt and your Dutch mortgage application
Student debt — whether accrued in the Netherlands or abroad — will reduce the amount of money you are eligible to borrow.
This is because lenders assess your overall financial situation to ensure you can meet your mortgage repayments.
International student debt and your Dutch mortgage
Lenders will evaluate all your financial obligations, including debts from studying abroad, to determine your borrowing capacity.
As a result, international student debt will be considered like any other debt when calculating your borrowing power.
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The presence of any form of debt reduces the amount you can borrow as it takes from your disposable income and ability to pay a mortgage.
Dutch student debt and your Dutch mortgage
In 2024, the rules regarding how Dutch student debt is calculated in your Dutch mortgage application have changed.
Previously, the original total amount of your student debt was used to calculate your borrowing capacity.
Now, the actual monthly instalment amount required for interest and repayment of your student loan is taken into account instead.
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As a result, you should be eligible for a higher mortgage compared to previous years.
So, if you have taken out a Dutch student loan to fund your studies, the new calculation method will determine your borrowing power.
How is my student debt checked when applying for a Dutch mortgage?
When applying for a Dutch mortgage, you must disclose all financial obligations, including student debt.
Student debt is not registered in the Dutch credit registration system (the BKR), but mortgage providers are required to ask for details of debts during the application process.
According to Expat Mortgages’ consultant, Chloée Huvelin, “Lenders will review your credit history and financial obligations to get a full picture of your financial situation.”
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“It’s crucial to disclose all your financial details to your mortgage advisor to ensure you don’t take on an irresponsible loan and can comfortably manage your monthly mortgage payments.’’
Want to know how your student loan affects your potential mortgage? You can schedule a free appointment with Expat Mortgages for personalised advice. They’ll analyse your financial situation, discuss your options, and advise you on what to do next.
What happens if I lie about my student debt on my Dutch mortgage application?
Not all applicants are thoroughly checked by lenders to confirm whether they have fully disclosed their student debt.
However, while some discrepancies might initially go unnoticed, it’s crucial to be honest about your financial commitments. Failing to disclose student debt on a mortgage application can have severe consequences.
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According to Chloée, “If you’re found to have lied about your student debt, you risk having your mortgage application denied due to an insufficient borrowing capacity.’’
Additionally, if you want to apply for a mortgage with the National Mortgage Guarantee (NHG), which provides a safety net for homeowners in financial distress, it’s mandatory to inform them of your student debt.
In short, you should always provide accurate information to your mortgage advisor to avoid potential issues and secure the best possible mortgage terms.
How has your student debt affected your Dutch mortgage application? Let us know in the comments below!
