Q&A mortgage questions
If you have purchased a property to live in and have a mortgage. You then need to leave The Netherlands for 1 to 2 years. Can you rent the property out without changing the mortgage, or do you need to change it to a buy-to-let mortgage while renting it out and then convert it back when you return?

If your current employer sends you abroad for a pre-determined period (1-3 years, depending on the bank), you can request your mortgage bank permission to rent out the property for that term. In any other situation, you would have to refinance the mortgage to an investment one. For more information, read our blog: renting your home without a permission.

How do you get past the new laws in cities like Amsterdam and Utrecht requiring that the buyer lives in residence for five years before renting?

There is no way around the applicable laws. You can adjust your parameters of your future investment. Either you change location to an area where there are no/more flexible restrictions, or you increase your budget for the area you are originally interested in (if financially possible).

News has stated that government wants to stop renting out apartments for less than 500k. Is this applicable, and does this 500k refer to the WOZ or market value, as these can be very different?

You need to meet purchase protection requirements based on the WOZ value. Check WOZ values here: Purchase protection law

What I understood is that not all banks allow you to convert the mortgage interest to an investment one and to rent out your house, do you have a list of the banks allowing you this?

Not all Dutch banks offer buy-to-let mortgages, and not all work directly with clients. Top buy-to-let lenders are NIBC, Nationale Nederlanden, or Dynamic Credit. All banks have different terms, conditions and requirements. Contact us for more information on your best mortgage options.

Will the mortgage provider accept the conversation to an investment loan?

Yes, banks allow you to refinance. Depending on the specific situation, the bank might charge a penalty when breaking the contract during your interest-fixed period. Feel free to contact us to learn more about refinancing and if the penalty applies to you.

Do you lose tax deductions if you refinance your residency to let rent?

Yes. There is no tax benefit on buy-to-let mortgages.

If I buy a newly built property directly from the builder and then change the mortgage to buy-to-let, will there be any transfer tax?

No, you need not pay transfer tax when refinancing a mortgage.

Is it true that no property under 400k cannot be rented?

This depends on the municipality you buy the property in. For more information, check the property protection act per municipality: Purchase protection law

How much is the downpayment (in percentage) for the different mortgage types?

There is no percentage of downpayment as the majority of the costs are fixed (apart from the transfer tax and in some cases the real estate agent).  For a residential mortgage, check the calculator on our website:https://mistermortgage.nl/calculate-closing-fees-netherlands/. An estimate for a buy-to-let property ca. 43%This also depends on your personal financial situation.

When can you refinance your house after purchase? Is there a minimum waiting period? Can we take out equity from the house with refinancing?

Banks do not have a waiting time to refinance your mortgage. It depends on the investment mortgage bank, but yes there are options to take out equity from the house in the refinancing.

To get the mortgage from the bank, is it mandatory to have the consent and signature/partnership of a spouse who lives in another country and has no contribution to the buyer?

It all depends on if your parentship is registered. Contact us for more information.

Recently, there was an article that govt. box 3 increased the rental yield to 6%, and does not allow to deduct of a mortgage from the value of the house, so you pay quite a high capital tax, can you tell me about it.

When investing in real estate you want your investment to create a profit/yield. Therefore we consider the tax rules and regulations in our calculations, including the capital tax and other costs involved in investing in real estate on the short and long term.

How do the 2024 plans to increase taxes on rental properties impact the current ROI picture you showed?

There are no concrete plans to increase taxes on rental properties specifically at this time. New rulings that have an impact on the calculations will be considered in our calculations.

Keep letting in Utrecht do you need to have the four years, and the value should be above 487.000? do you need both or one of those?

Both these requirements apply. Following you will find the link to the website of the Utrecht purchase protection law. https://www.utrecht.nl/wonen-en-leven/wonen/

Interest rates have gone up a lot and will probably continue. My concern is that refinancing to an investment mortgage at a much higher rate will turn a profitable property into an unprofitable one?

The interest rates have indeed increased from March 2022 till January 2023. Lately, we see a graduate decrease in interest rates to a more balanced rate at this time. We keep a close eye on the interest rates and their progression and include this in our calculations and advise you when you consider investing in Dutch real estate.

If we like a residential property for more than 440K, could you let us know if the transfer tax would be applicable on the differential amount above 440.000 or the entire amount? We are both under 35yrs, and it will be our first home.

If you buy a property of over € 440.000, you pay transfer tax of 2%. If you buy below € 440.000, you are under 35 years old and have not benefitted from the ruling before, you don’t need to pay 2%. For more information, check: Transfer tax changes in the Netherlands

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