The first thing you probably ask yourself when you decide to take out a Dutch mortgage is this: “Okay, so what can I afford to buy?” In other words, you want to know about your borrowing power. 

In this article, we’ll cover important factors to consider when buying and financing a home in the Netherlands.

In the end, what’s most important is that you understand the options and choose what best suits your plans and wishes. Ensuring that your finances don’t keep you up at night and you can sleep with a clear mind in your new home.

In the Netherlands, there are several factors that will determine how much money a mortgage provider will lend you. Many of these factors are dependent on timing.

So, what’s your borrowing power in the Netherlands going to look like in 2026? 

What is borrowing power?

Put simply, your borrowing power is the mortgage amount a mortgage provider will approve.

This is determined based on a number of factors:

• Your gross annual income. Yep, that’s right, gross income — so before taxes. While only a certain amount of your income may be landing in your bank account, when calculating your borrowing power, your income before taxes will be considered. Why? Because you can be eligible for a tax benefit on part of the interest paid on the mortgage loan for your residential property.
• The duration of the mortgage. This will also affect your borrowing power. In the Netherlands, the standard mortgage duration is 30 years. You can choose a shorter term. However, the shorter the term may lower your borrowing power. This is because your monthly mortgage repayments are higher if you repay faster.
• The interest rate. A higher mortgage interest rate, means lower borrowing power.
  If the interest is higher, less of your calculated budget (income that can be spent on housing) goes towards capital repayment, so you can borrow less.

Changes for your Dutch borrowing power in 2026

As mentioned before, your borrowing power also depends on timing. Every year the government adjusts the calculation rules, mortgage providers adjust their conditions, interest rates can change, and the housing market evolves. So, what’s different in 2026?

Dutch mortgage interest rates are stabilising

Mortgage interest rates in the Netherlands have stabilised after declining throughout 2025, with rates now hovering around their lowest point in recent years.

According to major Dutch banks, rates are expected to remain broadly stable through 2026, with the European Central Bank (ECB) keeping its deposit rate around 2%.

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What does this mean for your borrowing power in 2026? With interest rates staying low and stable, combined with an expected 4.1% wage increase, most households will be able to borrow more.

If interest rates remain stable and wages increase as expected, many households could see a modest improvement in their borrowing capacity — however, the exact impact will still depend on personal income, expenses, and lender criteria.

How does this work?

In the Netherlands, your borrowing capacity is influenced by: 

• The loan-to-value ratio (LTVR) or risk category 
• The interest fixation period, i.e. the period of time the client chooses to fix the interest rate (we’ll explain these below).
• The interest rates of the mortgage provider

The loan-to-value ratio (LTVR) sounds tricky, but it’s actually quite simple. 

In the end, what’s most important is to balance the following aspects. Let’s order them by priority:

1. Monthly payments: What monthly payments are you comfortable with?
2. Input of savings: What amount of your savings can you use for this purchase?
3. Borrowing power: Within your parameters and the banks’ conditions, what is the best balance?

Sustainable measures remain very important

As we all know, energy in the Netherlands is expensive. How does this interact with the housing market? 

Many people are looking for sustainable measures to reduce energy costs and be less dependent on, for example, gas.

Not only are sustainable housing options a good move to consider when you already own a home, but also when you’re looking to buy one. 

If you wish to make sustainable changes to the home you’re considering buying, this can increase your borrowing power.

READ MORE | How will my student debt affect my chances of getting a mortgage in the Netherlands?

As of January 2024, home buyers in the Netherlands could borrow more money to purchase a home and improve its energy label. In 2026, this continues to play an important role in how much you can borrow towards a mortgage.

Just how much extra money you can borrow is determined by where the house’s energy label falls:

• The lower the energy rating, the more money you can borrow to implement energy-saving measures in the home.
• The higher the energy rating, the more you can borrow to purchase the home.

The NHG limit has gone up

As of January 2026, you can take out a mortgage with the National Mortgage Guarantee (NHG) for homes with a purchase price or value of up to €470,000, including renovation costs, or €498,200 if you plan on taking energy-saving measures.

READ MORE | What is the Dutch National Mortgage Guarantee (NHG)?

In order to take out a mortgage with the National Mortgage Guarantee, you must pay a one-off contribution. In 2026, this contribution amount remains at 0.4%

Another important change in 2026? From January, this NHG limit applies to all home types.

Singles can still borrow €17,000 more than couples

If you are single and not looking to mingle, you don’t have to give up on your dream of owning a home.

In January 2024, single people in the Netherlands with an income of at least €28,000 became eligible to borrow an extra €16,000 towards buying a home. In 2025, this amount increased to €17,000 and will remain the same in 2026.

READ MORE | What costs do you pay when buying a house in the Netherlands?

By allowing for this extra borrowing power, the Dutch government hopes to give singles a fighting chance in the Dutch housing market. 

Whether or not your wages increase is very important in 2026

Good news! According to the National Institute for Budget Information (NIBUD), your wages will increase in 2026 by an expected 4.1%. And an increased wage means increased borrowing power.

What sort of increase can we expect? Well, in 2026, households with an average gross income of €70,000 able to borrow around €6,000 more compared to 2025.

As NIBUD researcher Marcel Warnaar puts it, “On average, people will be able to get a larger mortgage in the new year.”

However, please note: without a wage increase, your borrowing capacity may actually decrease slightly due to inflation. According to NIBUD, it’s the wage growth that’s driving increased borrowing power, not just the interest rates.

How do interest rates impact your borrowing power?

Interest rates are certainly going to impact your borrowing power. And how much do you know about them? For example, do you know the difference between fixed and floating mortgage interest rates?

• A floating/variable mortgage interest rate means that the interest rate can change every month throughout the loan period. This change is determined by your mortgage provider and largely based on fluctuations within the market.
• A fixed interest rate does what you imagine, the interest rate is fixed throughout the fixed period you choose. Depending on the mortgage provider, that can be any period from one year, to the full duration of 30 years.

Let’s compare the two a bit further.

The pros and cons of floating mortgage interest rates

First up, the pros of a floating mortgage interest rate:

One of the key pros of taking out a mortgage with a floating interest rate is that you have the flexibility to adjust your mortgage.

Your interest contract is renewed every month. As a result, you can adjust your mortgage every month without having to pay a penalty to break a fixed contract.

The mortgage provider can adjust the interest rate every month, and if the provider decides to decrease rates, you benefit from this directly.

However, there are also some cons.

For one, you will experience uncertainty in your monthly payments. The bank can change your floating rate every month, which in turn means your monthly payment can change every month.

Is the interest rate decreasing? Good! You’ll have lower costs. Is the interest rate increasing? Well, your monthly payments will too.

Floating rates are often (slightly) higher than short fixed rates (one to three years).

So, who should choose this option? Floating interest rates are mostly interesting for people who want to regularly check interest rates and are ok with changing monthly payments.

Pros and cons of fixed mortgage interest rates

Now, let’s talk about fixed mortgage interest rate loans. First up, the pros.

One big pro is that you can enjoy certainty in your monthly payments.

During your fixed interest period, you know exactly what your monthly payments will be, no surprises. If the mortgage provider decides to increase their rates, you will not be affected during your fixed period.

After the fixed interest period, your mortgage provider will offer new interest rates. At that time, you can also choose to refinance your mortgage with another mortgage provider with better rates and conditions.

As for the cons, there is less flexibility than with floating rates. You can only change the interest rates after the fixed period. Want to break the contract during the fixed period? This could get you a penalty.

So, who should choose this option? Fixed interest rates are mostly interesting for people who like more security in their monthly payments. You can choose to fix the interest for a period that suits you best.

What fixed interest should international homebuyers in the Netherlands consider?

First of all, you should determine how long you expect to stay in the Netherlands — especially if you’re considering opting for a fixed interest period.

On average, people stay in their first home for four to seven years. When benefitting from the 30% ruling you might consider living here for the five year duration of the ruling.

Or maybe you’re planning on starting a family in a couple of years and you may want to move to another place or country. Whatever your future plans are, you can tailor your mortgage to these.

For example, the standard fixed interest period is 10 years. However, if you are planning to leave the Netherlands in six years, you might not need the security of a 10 years fixed rate.

In that case, you would pay a higher interest for an extra four years security that you do not end up using.

Moral of the story? You should make sure to gather all the information and advice before you make the final decision.

Are you an international who has bought a home in the Netherlands recently? Tell us about your experience in the comments below!