As a home buyer, you must make a significant financial decision. The decision might look scarier than it truly is. If you are aware of the Dutch mortgage process, you will have more confidence to make the right decision. For this reason, we’ve answered the most common questions that home buyers would ask us about a Dutch mortgage in 2020.
1. Can I get a Dutch mortgage if I’m temporarily employed?
Short answer: Yes. You can get a mortgage if you have temporary employment.
You can get a mortgage in the Netherlands if you’re temporarily employed. To get a mortgage, you will be required to show a declaration of intent. In other words, your employee must have the intention to further your employment as soon as your temporary contract expires. Besides, you must provide a list of mortgage application documents.
2. Do I qualify for a mortgage in the Netherlands if I’m permanently employed?
Short answer: Yes. You can get a mortgage if you’re permanently employed.
One of the requirements to get a mortgage in the Netherlands in a more quick way is a permanent contract. If you have a permanent agreement, your mortgage application process will be more rapid. The additional documents required when getting a mortgage in the Netherlands are:
- your proof of income
- proof of savings/assets
- proof of debts/financial obligations
- documents about the property
3. How much I need to close a mortgage in the Netherlands?
When buying a property in the Netherlands, you must pay closing costs, including property taxes, insurance, 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. Check the list of mortgage costs below
- Purchase Price
- You pay 2% of the property price to the Dutch Tax Authorities. You are not obliged to pay a property tax when purchasing a new build property.
- A real estate agent can cost between EUR 1000 to EUR 3.500. You can find a real estate that charges a fixed fee while others charge 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 EUR 1.500 to EUR 3000.
- Renovation or additional costs
- NHG (National Bank Guarantee is a scheme that protects you and your mortgage lender). It helps you repay your mortgage if you are not able to do it due to disability, divorce, or unemployment. You can get an NHG protection if your property price does not exceed € 310,000 of the property’s value. You only need to pay a one-time fee of 0.7% of your mortgage amount. If you are planning to borrow EUR 175.000, your NHG fee will be EUR1225.
- Mister Mortgage charges a fixed fee for a mortgage advisory and brokerage. For more information, check our pricing page.
You can use our calculator to determine how much savings you must have to finalize a mortgage in the Netherlands. 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.
4. Can I get a mortgage if I’m a freelancer in Amsterdam?
Short answer: Yes. You can get a mortgage if you’re a freelancer.
The same rules apply for freelancers as self-employed internationals in the Netherlands. To get a mortgage as a freelancer, you must show the details of your earnings and paid taxes from the last twelve months. We work with different mortgage lenders in Amsterdam, so we can always find the best solution for you. Are you a freelancer? Tell us about your situation, and we will provide a matching solution.
5. I’m an E.U. citizen, can I buy a house in the Netherlands?
Short answer: Yes. E.U. citizens are eligible to apply for a mortgage in the Netherlands.
Banks need your BSN, show your contract of employment, proof of income and savings, and debts. The additional mortgage requirements depend on the mortgage lender in the Netherlands. Contact us for more information.
6. Can U.S. citizens buy a property in Amsterdam?
Short answer: Yes. U.S. citizens are eligible to apply for a mortgage in the Netherlands.
The U.S. or non-European Union passport holders can get a mortgage in the Netherlands, yet they need to prove their residency in The Netherlands. Non-EU citizens are subject to almost the same rules as E.U. citizens. You can check the list of required documents here.
7. Are Ph.D. students/academics able to get a mortgage on their house in the Netherlands?
Ph.D. students/academics can buy a house in the Netherlands and finance their homes with a mortgage. Check the list of documents required to get a mortgage in Amsterdam here.
8. How much can I borrow in the Netherlands?
It’s one of the most popular questions when it comes to your dream home in the Netherlands. The amount you can borrow depends on tow measurements: your annual salary and the value of the property. The mortgage calculator can help you to check how much you can borrow, yet the mortgage calculators aren’t detailed enough. We advise you to schedule your free mortgage appointment and get personalized mortgage advice.
9. I am not an EU resident; can I get a mortgage in the Netherlands?
Short answer: Yes. Non-residents can get a mortgage in the Netherlands
The citizens from non-Eu countries have similar requirements for a mortgage in the Netherlands. You must have a BSN number and prove your residency in the Netherlands. If you are living abroad and planning to purchase a property, schedule a call with us to explore your possibilities in the Netherlands.