House Mortgage in the Netherlands: A Complete Guide
Navigating the Dutch mortgage system can be challenging, especially if you're unfamiliar with local rules and regulations. Despite the current market conditions, obtaining a mortgage to buy a house in the Netherlands is feasible for many. This guide will walk you through the key aspects of Dutch mortgages.
The Mortgage Process
Once your offer on a property has been accepted, it's time to secure financing. Most buyers opt for a mortgage, which can cover up to 100% of the property value. Any amount above this must be self-financed.
After selecting your preferred mortgage provider, your mortgage advisor will submit an application on your behalf. The provider will then issue a mortgage proposal outlining:
- Total mortgage amount
- Interest rate
- Fixed interest period
- Required documents for background checks
Upon submitting and approval of these documents, you'll receive an official offer. Accepting this offer typically completes the application process. Your mortgage begins on the day of property transfer, and you'll start paying monthly fees.
Mortgage advisor is always welcomed in these type of situations. Here's what one of our speakers Thomas says about his experience working with mortgage advisors:
Typical Required Documents
- Passport or ID
- Recent salary slip
- Employer's statement (if you don't have a permanent employment contract)
- Current insurance details
- Property valuation/appraisal report
- Copy of the deed of sale
- Notary contact information
Purchasing Costs
When buying a house, consider these additional costs (most of which are tax-deductible):
- Appraisal report
- Transfer tax (usually 2% of the property value, with exceptions for buyers under 35 or purchasing new-build homes)
- Notary fees (around €1,000)
- Mortgage advice and brokerage costs (approximately €3,500)
- Realtor fees (optional)
- Technical building inspection (optional)
Deposit or Bank Guarantee
After signing the purchase agreement, you'll typically need to provide a deposit or bank guarantee, usually 10% of the purchase price, within two weeks. This assures the seller of your commitment. If you opt for a bank guarantee, your bank will guarantee this amount.
Finalizing the Purchase
After arranging the mortgage, there's a three-day cooling-off period. Once this passes and any additional conditions are met, the purchase becomes final.
A few days before the transfer date, you'll receive a draft deed of delivery and a settlement bill. Review these documents carefully for accuracy.
On the transfer date, you'll conduct a final property inspection. The mortgage provider will then pay the agreed price, typically arranged through the notary. You'll need to cover any additional costs, sometimes in advance.
During the final meeting with the notary, you'll review and sign the deed of delivery. If you don't speak Dutch, a translator must be present, as the contract is always in Dutch. Once signed, the property becomes yours and will be registered in the Kadaster (Dutch Land Registry).
Congratulations on your new home!