Are you planning to buy another property but wish to keep your current one? Discover how to rent out your current property while financing your next purchase in the Netherlands.
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Imagine you bought a property with a mortgage a while ago. Now, things have changed—maybe you're moving or planning to live with your partner—and you'd rather not sell the property. Instead, you want to rent it out.
For this reason, you need to refinance your residential mortgage to a buy-to-let mortgage.
There are two possible scenarios in this case:
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Stay with the same mortgage lender
You might be able to transfer your current house loan to a new property in the Netherlands, keeping the same terms and interest rates. -
Move on to a new mortgage lender
There is always an option to find a new mortgage lender with more favorable conditions, for example, lower interest rates.
You need a financial specialist to review your situation and determine whether you can afford two houses. Your mortgage specialist will also help you establish the budget for owning both homes.
Besides, there are a few things to consider if you plan to rent a home, for example, homeowners insurance, power bills, property taxes, and other costs of owning a second house.
As the first step, we ask you to submit a few documents so we can assess your situation and determine if you can refinance your mortgage to keep-to-let. Then, we schedule a follow-up call to discuss the possibilities and how to achieve your financial goals.
Schedule a free introduction call with our mortgage specialist to learn about your mortgage options in the Netherlands.
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A "keep-to-let" occurs when two people buy a new property but decide to keep their old one as an investment, renting it out instead of selling it immediately. This trend is becoming increasingly popular among private homebuyers in the Netherlands.
You are not allowed to rent a house without a residential mortgage. It's essential to note that renting out your home is prohibited unless your mortgage lender grants permission for a limited rental time. When purchasing a property, you enter a legally binding agreement with your mortgage lender. Most mortgage agreements include a "rental clause," prohibiting renting out without the bank's written consent, which will be considered subletting.
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If you buy a home to live in with a residential mortgage, you are not allowed to rent it unless you obtain permission from your lender or switch your mortgage product from residential to buy-to-let.
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If you buy a property for rental purposes with a buy-to-let mortgage (or, in other words, an investment mortgage), you are allowed to rent your home immediately.
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In both cases, you must meet certain requirements: switch your residential mortgage to a buy-to-let mortgage, comply with the Purchase Protection Act, and ensure that the property meets the necessary standards for rental properties.
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For further details, don't hesitate to contact our mortgage specialist. We're pleased to investigate your individual circumstances, as each case varies.
In the Netherlands, the investment mortgages are 0,5%-1% higher than interest rates for residential mortgages.
To convert your residential mortgage to a buy-to-let mortgage, you need to switch your mortgage to a buy-to-let product. Not all banks in the Netherlands offer investment mortgages. For this reason, our mortgage specialist assists you in refinancing your residential mortgage and finding the best mortgage solution for your situation. We assess your situation and offer guidance on the necessary steps and associated terms and conditions involved in the process.
Yes, and you should always ask fo permission before renting your property. You may ask for permission if:
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Your job relocates you abroad for a fixed term, up to two years.
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Rent from tenants covers your mortgage.
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You plan to move but can't sell due to limited buyers, so you rent to prevent leaving the house vacant.
Note that persuading the bank about selling difficulties in the current market can be challenging. Your mortgage lender can grant written permission to rent your home for up to 24 months, subject to your mortgage terms. Remember, a mortgage broker may expedite the consent process. Renting out your property without your lender's approval can violate your mortgage terms, leading to penalties, repayment demands, rejection by the lender, and potential foreclosure.
