The process of getting a mortgage involves some key steps that you’ll see no matter where you want to buy a home. However, there are certain aspects of buying a house in the Netherlands that may surprise you.
Or maybe not. You’ve heard all about the cooling-off period, right? And you know what happens with your student debt of course. No? That’s ok. That’s what you’re reading this for!
We teamed up with experts at Expat Mortgage Platform to bring you this article. After all, they know all the ins and outs of getting a mortgage as an international in the Netherlands.
Here are seven things you probably didn’t know (but should!) about buying a house in the Netherlands.
1. You get three days to change your mind
Imagine this: you’ve spotted the home of your dreams, placed your bid, and success! Your offer has been accepted. You pop the champagne and begin to plan your life in your new home. 🍾
However, the next day, amid a terrible hangover, you realise that this actually isn’t your dream home. It’s too far from your work, or it’s not suitable for that big future family. You’ve made a mistake.
Geen probleem. In the Netherlands, you have what’s called the cooling-off period (afkoelperiode). This means that you can pull out of your agreement to buy a house within three working days without paying a cent.
Essentially, if you pull out within the cooling-off period, there will be no financial or legal implications. You can walk away from your initial decision with no strings attached.
2. The Dutch have a National Mortgage Guarantee
In the Netherlands, you can also benefit from what is called the Nationale Hypotheek Garantie (National Mortgage Guarantee).
The NHG is basically a protection against any debt that still stands if you can’t pay your mortgage due to involuntary unemployment, divorce, or the inability to work. If you do find yourself in this situation, the NHG will work with the bank to try to help you keep your home.
However, if you have to bite the bullet and sell your home for less than the remaining mortgage, the NHG will cover any residual debt for you.
When you opt for a mortgage with the NHG, you can also enjoy lower mortgage rates — meaning it’s a great option for hopeful homeowners who want a bit more security and support in their mortgage.
Note: In order to benefit from the NHG in 2022, your mortgage cannot exceed €355,000.
3. It’s surprisingly easy to get a mortgage as an international in the Netherlands
The prospect of buying a house in a foreign country is always going to be a bit daunting.
However, while there are certain requirements that you must meet in order to qualify for a Dutch mortgage, overall, the process should be mostly the same as it would be for a Dutch person.
In order to qualify for a mortgage in the Netherlands, you must:
- Live in the Netherlands
- Have a BSN
- Be registered in the Netherlands
Once you have met the above requirements, your status as an international really doesn’t matter! The banks and mortgage providers will treat you the same as any Dutch person who applies for a mortgage.
You should know: While it may be easy to get a mortgage as an international in the Netherlands, finding a house to buy is a whole new ballgame.
4. Your student debt doesn’t always stop you from getting a mortgage
Student debt — many of us have it, and yet, many people in the Netherlands are still able to buy a house. How?
People often think that student debt is an immediate no when it comes to a mortgage. Luckily, in the Netherlands, that just ‘aint true!
When you apply for a Dutch mortgage, you will be asked about any outstanding debts, including any student debt.
The higher your debt, the lower your borrowing power — but unless your student debt is quite significant, you’re not going to be denied a mortgage purely because of this.
5. Sometimes you can buy a house — but not own the land it’s on
Yep, you read that right. In the Netherlands, especially in larger cities such as Amsterdam, Rotterdam and The Hague, you can buy a house but not necessarily own the land it’s built on. Why? This comes down to something called the erfpacht.
Erfpacht is essentially a leasehold for the land that the home is situated on. You can think of it as a long-term rent that you pay to the municipality.
And yes, you pay it on top of the cost of buying the house. It’s important to factor this in when calculating your borrowing power.
6. Mortgage interest is tax-deductible
Back in the day, there were a number of different mortgage models that you could choose from when buying a house in the Netherlands. Some of these would allow you to deduct mortgage interest from your taxable income, and some not.
However, if you’re looking to get a Dutch mortgage in 2022, then you now have two options: you can either go for a linear mortgage or an annuity mortgage — and under both models, mortgage interest is tax deductible.
This means that, for example, if you pay €100 in mortgage interest each month, you can deduct €100 from your taxable income — a huge plus.
7. The length of time that you’ve lived in the Netherlands doesn’t matter
While some may think that the longer you live in the Netherlands, the better your chances of securing a Dutch mortgage, this simply isn’t the case.
If you arrive in the Netherlands and immediately decide that this is the country for you, we have some good news: many mortgage advisors and providers are happy to start the process of setting up your mortgage from day one. That can save you a stack of cash on rent!
Ready to find your dream home, calculate your borrowing power, and secure a Dutch mortgage? Great! The team at Expat Mortgage Platform knows how it can be for an international to make the jump. Reach out and their experts will take you through the entire process, geen stress.
How else did the Dutch mortgage process surprise you? Tell us in the comments below!