5 January 2023
Mortgage for self employed
Egle Kemezyte
Growth Marketer

How do you prepare for a mortgage application as an entrepreneur? To apply for a mortgage as a self-employed, you must earn enough to qualify for a mortgage in the Netherlands.

How does the bank calculate your maximum mortgage?

When applying for a mortgage as a self-employed individual, banks will typically review your annual financial figures to assess your income and financial stability. Some specific areas that banks may look at include:

  • Gross income: banks will want proof of your gross income and the total amount you earn before deductions for taxes and other expenses. This can be determined by reviewing your tax returns or financial statements.

  • Net income is your gross income minus business expenses and other deductions. This is a key factor that lenders will consider when evaluating your mortgage application, as it reflects the amount of money you have available to make mortgage payments.

  • Profit margin: banks will also review your profit margin, which is the amount of money you make after subtracting business expenses from your gross income. A higher profit margin can demonstrate your business's financial stability and success.

  • Cash flow: lenders will want proof of consistent cash flow, which is the amount of money coming in and going out of your business. A positive cash flow can demonstrate the ability to meet financial obligations, including mortgage payments.

By reviewing these financial figures, banks can assess your ability to make regular mortgage payments and evaluate the risk of lending to you.

Who can provide you with a financial forecast?

  • An accountant or bookkeeper can also help you create a financial forecast. They can review your financial records and guide how to protect your income and expenses in the future.

  • Financial advisor: you can work with a financial advisor or planner who can help you create an economic forecast based on your current financial situation and future goals. Financial advisors can help you assess your financial needs and develop a plan to achieve your financial objectives.

What is an income statement? 

In the Netherlands, an income statement (also known as a profit and loss statement or P&L) is a financial statement that shows the revenues, expenses, and resulting profit or loss of a business over a specific period.  The income statement will include the following:

  • Revenues: The total amount of money earned from the sale of goods or services.

  • Expenses: The costs incurred in the process of generating revenues. This includes costs of goods sold, employee salaries, rent, utilities, and other operating expenses.

  • Profit or loss: The difference between revenues and expenses. If revenues exceed expenses, the business has made a profit. If expenses exceed revenues, the company incurs a loss.

Are you self-employed and looking for a mortgage?
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Meet the team
Sezer Yilmaz
Egle Kemezyte
Growth Marketer
Robin Uijtdehaage
Client Director & Financial Specialist
Lisa Grondsma
Financial Specialist