Thinking about buying a house in the Netherlands? Wondering what the housing prices are doing? And if now is the right time to jump into the Dutch housing market and take out a mortgage? Then this update is for you!
We decided to tackle some of the most asked questions when it comes to buying a house in the Netherlands as an international in 2022. If you’ve been thinking of getting off the rental bandwagon and becoming a proud homeowner, then read on. 🏡
We’ve partnered up with Melissa Zahaf at Expat Mortgage Platform to bring you this article. If you have questions about the housing market or are interested in buying a house in the Netherlands, reach out for a free consultation!
First things first, let’s start with Amsterdam.
Are house prices in Amsterdam dropping or rising?
While the world had been turned upside down these past two years, some things will simply never change. Housing prices in Amsterdam are rising as always. And according to ABN AMRO, they will continue to do so.
In 2021, housing prices in the world-famous city rose by an astonishing 15% — but hold onto your hats people — economists at ABN AMRO are predicting they will continue to rise by a further 12.5% in 2022.
Part of the reason for this continuing rise is the increasing pressure on the housing market. The number of houses going up for sale in the city is decreasing, leaving room for competition amongst buyers.
In the last quarter of 2021, only 979 houses went up for sale in the municipality of Amsterdam. The result? A significant hike in the average selling price.
What about housing prices outside of the Randstad?
While Amsterdam certainly is popular, housing prices are actually increasing even more outside of Amsterdam, specifically, outside the Randstad. In fact, housing prices across the Netherlands increased by an average of 20% this year — meaning Amsterdam saw a below-average increase. 😳
After over two years of being stuck indoors, it seems that people want to enjoy a more spacious and free lifestyle at home. That pushed many people outside of the Netherlands’ much-beloved ring of crowded cities.
Many potential homeowners are now looking to the north of the Netherlands for their future homes.
Regions such as east Friesland, Overijssel, and Groningen saw housing prices increase at a higher rate than regions like North and South Holland. For example, Groningen saw a 19% increase in housing prices this past year.
What does the Dutch housing market look like in 2022 for potential buyers?
There are a number of things to note if you are hoping to buy a house in the Netherlands in 2022. Let’s run through them. 👇
Your borrowing power is slightly reduced
Not only has the past year seen a staggering increase in housing prices — but in prices in general. As of January 2022, inflation in the Netherlands had risen by 7.6%.
And what does this mean for hopeful homeowners? Unless your salary has risen to match this inflation, your borrowing power will be slightly lower in 2022.
It’s the last year for a tax free contribution (jubelton)
If you were hoping to get a helping hand from your parents, you’re going to want to buy a house in 2022. In the Netherlands, your parents can offer a tax-free contribution (called the jubelton) towards the buying of your house.
However, as part of Rutte IV’s new plans, the tax-free contribution will be scrapped as of 2023. Of course, you can still receive a gift — but a large chunk of it will go towards taxes.
Mortgage interest rates are rising
The year 2022 has brought with it a rise in mortgage interest rates. The past few weeks have seen interest rates rise by as much as 0.8%. Again, this comes down to rising inflation in the Netherlands and also results in less borrowing power for potential buyers.
While the current war in Ukraine has caused this growth to plateau slightly, experts still expect Dutch mortgage interest rates to continue to rise in 2022.
The maximum amount for the National Mortgage Guarantee has risen
It’s not all bad news, however! The National Mortgage Guarantee has taken the rising house prices into account, raising it’s maximum mortgage to €355,000
What is the National Mortgage Guarantee? The National Mortgage Guarantee (NHG) is a loan system in the Netherlands that vows to pay any residual mortgage debt if the borrowers are unable to pay it themselves.
Now may be your chance to buy a house
You may be surprised to read this but, yes, given the current trends and predictions in the Netherlands, now could be the time to bite the bullet and buy a house — if your personal financial situation permits.
With housing prices, inflation, and mortgage interest rates expected to continue to rise, now could be a chance to get ahead of the increasing numbers and get into the housing market.
With all of these prices rising, is it a good time to sell?
You have a big chance of selling your home for above its value at the moment in the Netherlands. With such a competitive market, hopeful buyers are often overbidding on houses.
This competition also means that the entire process of selling should be over relatively quickly. You won’t have to worry about a long wait before the property is snapped up as the average house takes just 24 days to be sold.
However, it’s important to remember that while you’re benefitting from the housing market, you’re also going to have to take it on again — unless you already own a second property.
TIP: If you’re curious to see what your mortgage loan in the Netherlands would look like, check out this helpful mortgage calculator tool. You should be able to get a ballpark figure so you know what you can expect to pay in 2022.
Can you buy a house in the Netherlands if you are an international?
Long story short, yes, you can apply for a mortgage if you are not a Dutch national. All banks will be open to meeting with you to discuss your options, but your chances can vary. The regulations and barriers will depend on your nationality (EU national vs. non-EU national) and which bank you approach.
However, generally speaking, some banks might want you to be working and living in the Netherlands for a time. The longer you have been living and working in the Netherlands, the easier it will be to get a mortgage.
The entire process of getting a mortgage as an international in the Netherlands warrants an article in itself (or perhaps a book would be better.) For this reason, many people opt for the help of a mortgage advisor when going through this process.
If you’re unsure of where to begin in the process of buying a home, contact the experts at Expat Mortgage Platform. Not only do they offer free consultations they’re also specially trained in helping international clients find their future homes in the Netherlands. 🌎
How have you experienced the housing market in the Netherlands? Thinking about buying a house in the Netherlands in 2022? Tell us your thoughts in the comments below!