4 January 2023
Mortgage for rent in the Netherlands
Egle Kemezyte
Growth Marketer

A mortgage for a rental property is called a buy-to-let. To let property investors meet more requirements to qualify for a mortgage. It is good to know that mortgage terms and conditions for rental property vary per mortgage lender in the Netherlands.

What are the requirements for buy to let?

  • A rule of thumb is that investors can get mortgages with loan-to-value ratios of up to 70%. (LtV).

  • You must contribute 30 % of the property price from savings or equity from an existing property.

  • You need to be registered and live and work in the Netherlands.

  • You must pay 10.4 % of the transfer tax and other closing fees (real estate agent, valuation report, notary, translator, and mortgage brokerage fees).

Steps to take when considering investing in Dutch real estate:

  • Financing: to purchase a buy-to-let property in the Netherlands, you need to obtain a mortgage. Buy-to-let mortgages have more requirements and higher mortgage rates in the Netherlands.

  • Taxation:  rental income is subject to income tax in the Netherlands. As a buy-to-let investor, you must pay income tax on any rental income you receive from your property.

  • Regulations: you must comply with regulations to get an investment mortgage, including the property purchase protection act and tenant rights.

  • Maintenance and repairs: as a landlord, you are responsible for maintaining and repairing your rental property. This includes keeping the property in good condition and making necessary repairs promptly.

How buy to let mortgages calculated in the Netherlands?

  • The purchase price of the property: the mortgage amount will be based on the property's purchase price and any additional costs associated with the purchase, such as closing costs and fees.

  • The down payment: investment mortgages generally require a larger down payment than owner-occupied homes. The size of the down payment will affect the amount of the mortgage.

  • The loan-to-value ratio: the loan-to-value (LTV) ratio measures the mortgage's size to the property's value.

  • The rental income: the lender will consider the expected rental income from the property when calculating the mortgage. The lender will typically require that the rental income is sufficient to cover the mortgage payments and any other expenses associated with the property.

Tips for future real estate investors:

  • Think about tenants: consider which type of tenant could provide for your property. Who is your perfect tenant: students, families, singles, or couples?

  • Choose a location that is based on your type of tenant.

  • Property management: Who will manage the property, yourself or the agency?

  • Rental income: how much do you expect to get on return? What will be the costs of maintaining the property?

  • What is your aim with buy-to-let investment: long or short-term goals?

  • Are you aware of your right and obligations as a landlord?

Are you looking for a mortgage to buy or rent?

Schedule 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