8 April 2024
Buying your first home in the Netherlands
Egle Kemezyte
Growth Marketer

Buying your first home in the Netherlands is an exciting journey filled with unique challenges and opportunities. From navigating the intricacies of the Dutch housing market to understanding the financial aspects, prospective homeowners must familiarize themselves with the local real estate landscape.

How much mortgage can I get in the Netherlands?

Your maximum mortgage amount depends on the loan-to-income ratio (LtI). The LtI determines how much mortgage you can afford, and the loan-to-value determines how much mortgage the bank is willing to give based on the property's value.

Scenario 1: If you plan to purchase a property appraised at € 500,000 and your loan-to-income ratio is € 450,000, the bank will borrow € 450,000 from you. The € 50,000 should come from your savings.

Scenario 2: If you plan to purchase a property appraised at € 500,000, with a loan-to-income of € 550,000, the bank will borrow € 500,000 from you. The bank always borrows you the lowest of the loan-to-income OR the loan-to-value.

Online calculators are not accurate enough to determine your maximum mortgage. As of January 1, 2024, house energy labels are important in determining your maximum mortgage. For this reason, we advise you to schedule an introductory call with our mortgage specialists to get an overview of your mortgage possibilities. We request that you upload documents to our online portal as part of our process. We will review your online mortgage report and discuss different mortgage scenarios. What’s next? Now, you are ready to search for your dream home.

How much savings do I need to close a mortgage in the Netherlands?

You can get a 100% loan to the value of your property purchase price. When buying a property in the Netherlands, you must pay closing costs, including property taxes, insurance, a notary, and more. In other words, closing fees include all services and expenses required to secure a mortgage. Mortgage closing costs depend on the amount you’re planning to lend and the value of your property.

  • Purchase Price ( the amount you agree to pay for a property)

  • You pay 2% of the property price to the Dutch Tax Authorities. Individuals aged 18-35 will not pay a transfer fee if they purchase their first property and meet the requirements. Please note: you are not obligated to pay property tax when purchasing a newly built property.

  • A real estate agent typically works with a fixed fee ranging between €2,500 to €5,500 or a commission ranging between 1% to 2%. You can find real estate agents that charge either a fixed fee or a commission, depending on the property price

  • A valuation report is a mandatory rule when applying for a mortgage in the Netherlands. Your mortgage lender requires a professional appraisal to check the value of the house.

  • Movable goods, if applicable.

  • Notary (deed of ownership, deed of mortgage, public land records). Notary fees in the Netherlands vary between € 1,500 to € 2,000.

  • Translator.

  • Renovation or additional costs.

  • NHG (National Mortgage Guarantee) is a scheme that protects you and your mortgage lender. It helps you repay your mortgage if you cannot do so due to disability, divorce, or unemployment. You can get NHG protection if your property price does not exceed € 435,000. You only need to pay a one-time fee of 0.6 % of your mortgage amount.

  • Mister Mortgage charges a fixed fee for mortgage advisory and brokerage. For more information, check our pricing page.

The total amount of closing fees depends on the purchase price. All closing fees are payable on the day when you sign the transfer of ownership at the notary.

Deposit or bank guarantee

When your bid is accepted, you sign a purchase agreement between you and the seller. Mortgage pre-approval does not exist in the Netherlands. After the purchase agreement is signed, the next step is to arrange your mortgage. The seller asks to deposit 10 % of the purchase price to protect themselves if they cannot get a mortgage approved. If you do not have 10% savings available, your mortgage advisor can arrange a bank guarantee. You pay a one-time fee to secure a 10% deposit.

National mortgage guarantee

A national mortgage guarantee is a Dutch system that protects you and your mortgage lender. When you participate in the NHG scheme, you can make sure that your income will match your mortgage. If you cannot make a monthly payment due to unemployment, disability, divorce, or your partner’s death, the NHG scheme can help you deal with difficult situations.

How long does it take to get a mortgage approved in the Netherlands?

The process of buying a home varies by customer. You can speed the process up by starting to collect documents or looking for a home. As soon as you find a home, contact us. We submit all required documents for the mortgage application. The final mortgage approval can take between 5 to 10 business days.

Mortgage advise in the Netherlands

Mortgage advisers represent your needs and find a mortgage that fits your financial situation. Mortgage advisers work with different mortgage lenders. Banks only present one product, while the mortgage broker can compare more than 30 mortgage products.

Are you planning to buy your first home in the Netherlands?

Plan a free call with our mortgage specialists

Meet the team
Sezer Yilmaz
Egle Kemezyte
Growth Marketer
Robin Uijtdehaage
Client Director & Financial Specialist
Lisa Grondsma
Financial Specialist