Do you have plans to invest in Dutch real estate?
Differences between residential and buy-to-let mortgages:
An investment mortgage (or buy-to-let mortgage) works differently than a residential mortgage.
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A residential mortgage is for individuals who plan to live in the property. Residential buyers can get a loan up to 100% loan to value.
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A buy-to-let mortgage is for individuals who plan to buy a home as an investment. A rule of thumb is that investors can get a mortgage up to 70% loan-to-value (LtV).
You are refinancing when you switch your residential mortgage to a buy-to-let mortgage. In most cases, you must pay the penalty to your existing mortgage lender for breaking your current contract.
Requirements for a buy-to-let mortgage
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You must contribute 30 % of the property price from savings or equity from an existing property.
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You need to be registered and live and work in the Netherlands
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You must pay 10.4 % of the transfer tax and other closing fees (real estate agent, valuation report, notary, translator, and mortgage brokerage fees).
