Looking for an expat mortgage in the Netherlands?

When you apply for an expat mortgage in the Netherlands, a 'hypotheek', you apply for the same mortgage as Dutch natives. There is no such thing as an expat mortgage with special conditions. 

However, as an expat there are some extra requirements you might have to meet:

• You need to have a BSN (citizen service number) and a resident permit when you’re not a EU/EEA citizen.
• You have lived in the Netherlands for some time (six months up to five years).
• You are employed or self-employed and are financially independent.
• You need to pay a deposit.
• You have to prove that your residence permit can be extended.

Which of these special requirements for expats apply to you depend on your personal situation. When you're from outside the EU lenders might have stricter requirements. Ask your Hanno mortgage broker which conditions you have to satisfy.

More about Dutch mortgage rules

In general you can get an expat mortgage when you arrive in the Netherlands. However, some banks require that you have lived here at least six months up to five years. This depends amongst other things on your citizenship, work situation and savings.

More about 'how to get a Dutch mortgage'

Yes, it's possible to apply for an expat mortgage when you're self-employed. You will need to show at least three years of income history. Mortgage lenders use this to calculate your maximum mortgage in the Netherlands.

• Are your profits increasing? Then we will take the average of your net profit of the last years for calculating your Dutch mortgage.
• Are your profits decreasing? Then the lower figure will count for your mortgage calculation.

In theory you can get an expat mortgage when you have been self-employed for 12 months or longer. However, if you can't show three years of income history, it seriously affects the maximum mortgage you're allowed to borrow.

The amount you're allowed to borrow for your mortgage is determined by your gross income and the market value of the property:

• Income: in general you can borrow around 4 to 5,5 times the amount of your annual gross income. 
• Property's value: you are allowed to finance up to 100 percent of a property's market value. For example, if you buy a house for 300,000 euros, you can get a maximum mortgage of 300,000 euros.

There are, however, two ways to increase your maximum mortgage in the Netherlands:

• Sustainability: if you want to invest in home sustainability or buy a house that's already energy-efficient, you can borrow up to 106 percent of the property's market value. You can invest this extra money to buy a solar water heater, install a high efficiency boiler,  improve insulation of walls and floors or take other measures to reduce energy consumption in the house.
• Funds for renovation: you can include funds for renovation, for instance to build an extension or renovate your kitchen. Yet your budget for renovation depends, like the normal part of your mortgage,  on the market value of the property after renovations (with a maximum of 100 percent).

Be aware that there are also conditions that limit your maximum mortgage. For example self-employment, loans and leaseholds. 

Calculate your expat mortgage

There are a few things that might affect your ability to get a mortgage in the Netherlands or limit your maximum mortgage:

• Your nationality: when you have an EU passport, it's relatively easy to receive a mortgage as an expat. When you're from outside the EU, you will have to meet more conditions and you might not be able to finance a mortgage up to the limit of 100 percent.
• Income situation: the type of contract you have affects your mortgage in the Netherlands. Dutch mortgage lenders calculate the maximum mortgage differently for employers who have variable working hours, a 0 hour contract, work via an employment agency or payroll company, have a business income or are self-employed.
• Income from outside the Netherlands: it will affect your Dutch mortgage possibilities when your employer is not located in the Netherlands, especially when you don't receive your income in euros. An income in a different currency will be converted to euros with a lower converted value for your mortgage. And because you don't pay taxes in Holland, you are not eligible for interest tax deduction. 
• Loans: students loans and other loans will lower your maximum mortgage. It will probably still be possible to get a mortgage, but lenders will take your loans into account. 
• Leasing a car: mortgage lenders count your lease as a loan. Therefore leasing a car has a substantial impact on your maximum mortgage.
• 30% rule: as an expat you might be eligible for the 30% percent rule. This can have a positive effect on your maximum mortgage!

What you can borrow from a mortgage lender depends on your personal situation. Ask your Hanno advisor to make you a tailor-made Dutch mortgage calculation. 

More requirements for a Dutch mortgage

When you buy your first home in the Netherlands there are two main types of mortgages you can choose. Both types are eligible for tax-deduction on mortgage interest and have to be paid of in a 30-year mortgage term.

• Annuity mortgage: with this type of mortgage you pay the same gross amount every month as long as you have fixed the interest on the loan. This amount consists of interest and loan repayment and the ratio changes over time. Initially you pay a great deal of interest and a small deal of loan. In time the amount of loan you repay increases and the amount of interest decreases. Because of the tax-deduction on your mortgage interest your monthly net payment keeps increasing until the end of your mortgage term. Simple put: an annuity mortgage is cheaper the first years, but in total it is more expensive than a lineair mortgage.
• Lineair mortgage: with a lineair mortgage you repay the same amount of loan every month. Because your loan is getting smaller, the interest you have to pay reduces steadily. This also means that the tax-deductible interest reduces during the term. The monthly payments (interest + loan repay) of a lineair mortgage are higher in the beginning, but in total this mortgage type is less expensive.

Please feel free to contact us for a more in depth explanation about these mortgage types.

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If you receive 30 percent of your salary tax-free this might positively effect your maximum mortgage, but it is not a standard advantage. 

As an expat who makes use of the 30% ruling you have a higher net income. Yet mortgage providers in the Netherlands calculate your mortgage based on your gross income. This means that the 30% ruling doesn't give you an advantage when requesting a mortgage. 

However, some mortgage lenders are willing to give expats on the 30% ruling a higher mortgage than the basic Dutch mortgage rules allow. How much more depends on your gross annual income and the remainder of your 30% ruling, since you will have to pay of the extra amount during the period that the 30% ruling applies to you. 

Hanno works with more than 43 mortgage lenders and finds you the best mortgage based on interest rates and conditions. On our website you can find an overview with all current Dutch mortgages interest rates.

Please note that the interest rate of your mortgage depends on several things:

• Fixed period
• Loan-to-value
• Mortgage product
• Mortgage form (f.e. annuity or lineair)

Check out current interest rates

In the Netherlands you don’t pay commission or fees to your mortgage lender, but you pay a fee to your mortgage broker. Most mortgage advisors for expats ask much higher mortgage fees than we do. Check out our very competitive fees for mortgage advice.

Check our mortgage fees

There are a lot of documents you have to share to get an expat mortgage in the Netherlands, depending on your personal situation and mortgage lender. You will have to show at least the following documents:

• Salary slip
• Contract of employment
• Letter of employment
• Income history of the last years (if you are self-employed)
• Copy of your passport
• Copy of your residence permit (if applicable)
• Confirmation letter regarding 30% ruling (if applicable)
• Overview of your assets, credits/loans, and extra income

Check our mortgage documents manual

Tax-deductible mortgage interest is tax relief for homeowners. When you have an annuity or lineair mortgage and live in your own property, you are eligible for tax relief on your mortgage interest. This means you don't have to pay income taxes over the amount of mortgage interest you pay. As a result your taxable income decreases and you pay less income tax on your annual tax returns. How much tax reduction you get depends on your income level and tax bracket. You can find more information about taxes on the website of the Government.

NHG helps you get an affordable and responsible mortgage for homes with a maximum purchase price. It will help you out if you get into (financial) trouble beyond your control, and are unable to pay your mortgage costs. For example if you lose your job or when your relationships ends and you have to sell your house for less than you owe your mortgage company. To apply for an NHG mortgage in 2023 you have to meet the conditions.