Mortgage Calculator Netherlands 2025

A mortgage is a type of loan that you obtain from a bank or financial institution to purchase a property. The property serves as collateral, which means the lender has the right to claim it if the borrower fails to repay the loan.

Mortgage payments typically consist of:
1. Principal – The amount that reduces the outstanding loan balance.
2. Interest – The cost of borrowing the money.

Mortgages often have a maximum term of 30 years. Borrowers can choose between:
• Annuity Mortgage: Equal total monthly payments throughout the loan term.
• Linear Mortgage: Monthly payments decrease over time as the principal is repaid more quickly.

Mortgage interest is calculated on the outstanding loan balance. In the early years, most of your monthly payment goes toward interest, while the principal is reduced slowly. Over time, the interest portion decreases, and the principal repayment increases.

Total monthly payments (principal + interest) remain the same throughout the loan term.

• P: Loan amount (Principal)
• r: Monthly interest rate (Annual rate ÷ 12)
• n: Total number of payments (Loan term in months)

Loan: €300,000
Interest rate: 4% annually (0.00333 monthly)
Term: 30 years (360 months)

Monthly Payment (M): M = €300,000 × [0.00333(1 + 0.00333)360] / [(1 + 0.00333)360 − 1]

M ≈ €1,432 per month

• Interest: €300,000 × 0.00333 = €1,000
• Principal: €1,432 − €1,000 = €432

Over time, the principal portion increases, and the interest decreases.

Mortgage rates in the Netherlands vary depending on the type of mortgage, loan term, and Loan-to-Value (LTV) ratio. Mortgage rates in the Netherlands have experienced significant fluctuations over the last three years due to changes in economic conditions, inflation, and monetary policy by the European Central Bank (ECB). Here's an overview:

As of 2024:

• 10-year fixed: 3.5% to 4.0%
• 20-year fixed: 4.0% to 4.5%
• Variable rates typically start lower, around 2.5% to 3.0%, but are subject to fluctuations based on market conditions.

As of 2023:

Mortgage rates began to rise significantly due to increasing inflation and tighter monetary policies:

• 10-year fixed: 3.0% to 3.5%
• 20-year fixed: 3.5% to 4.0%
• Variable rates: 2.0% to 2.5%

This increase was influenced by the European Central Bank's decision to raise interest rates to combat inflation.

As of 2022:

Mortgage rates were still relatively low but started to rise as inflation pressures grew:

• 10-year fixed: 1.8% to 2.5%
• 20-year fixed: 2.0% to 2.8%
• Variable rates: 1.5% to 2.0%

The rise in rates was gradual, as the ECB had not yet significantly adjusted its monetary policies.

As of 2021:

Mortgage rates in the Netherlands were at historic lows due to the ECB’s accommodative monetary policy during the pandemic:

• 10-year fixed: 1.0% to 1.5%
• 20-year fixed: 1.2% to 2.0%
• Variable rates: 0.8% to 1.5%

These low rates were driven by the need to stimulate the economy during COVID-19.

In the Netherlands, mortgage interest for your primary residence is tax-deductible, reducing your taxable income. This is known as the mortgage interest deduction (Hypotheekrenteaftrek).

Steps for tax return calculation:

1. Determine the total interest paid on the mortgage for the year.
2. Multiply this amount by your income tax rate.
3. Ensure the tax refund does not exceed the taxes you owe.

Example:

• Annual mortgage interest: €12,000
• Tax rate: 36.93%
• Annual income: €80,000
• Tax Return = €12,000 × 0.3693 = €4,431.60

If you qualify for the 30% ruling as an expat, your taxable income is reduced by 30%, which can affect your tax refund calculation.

Homeowners can apply for a provisional monthly tax refund (voorlopige teruggave) from the Dutch Tax Office (Belastingdienst). This reduces your tax burden throughout the year by crediting the estimated refund amount directly to your bank account each month.

The Tax Deduction Rate in the Netherlands refers to the percentage of mortgage interest that can be deducted from your taxable income.

1. For Incomes Below €73,071 (2024): the deduction rate is 36.93%.
2. For Incomes Above €73,071: the deduction rate gradually decreases, with higher incomes receiving a lower percentage.

The Dutch government is gradually reducing the deduction rate for higher incomes. By 2031, the maximum deduction rate will align with the lowest income tax bracket.

NHG (Nationale Hypotheek Garantie) is the Dutch National Mortgage Guarantee program, designed to protect both lenders and borrowers in case of financial difficulties.

Benefits of NHG:

• For Incomes Below €73,071 (2024): the deduction rate is 36.93%.
• For Incomes Above €73,071: the deduction rate gradually decreases, with higher incomes receiving a lower percentage.

Eligibility for NHG:

• In 2024, the maximum loan amount with NHG is €405,000 (€429,000 if energy-saving measures are included).

Example:
If you purchase a home for €400,000 with an NHG-backed mortgage and later face financial hardship, NHG can step in to cover a portion of your remaining debt, minimizing financial strain.

TThe LTV ratio represents the loan amount as a percentage of the property's value. A lower LTV can lead to better interest rates, while a higher LTV may require additional insurance or guarantees.

Additional costs include transfer tax, notary fees, valuation fees, and possible real estate agent fees. These are collectively known as "kosten koper" (buyer's costs) and typically amount to around 6% of the purchase price.

Yes, expats can obtain mortgages in the Netherlands. Lenders may have specific requirements, such as employment contracts and residency status.

By inputting your gross annual income, existing debts, and other financial details into different bank’s mortgage calculators, you can estimate the maximum amount you might be eligible to borrow for a home in the Netherlands.

Dutch mortgages typically allow you to borrow up to 100% of the property value. This means no down payment is required for the property itself, but you’ll need to pay additional costs (such as notary fees, valuation costs, and transfer tax) out of pocket.

Additional Costs (Kosten Koper) include transfer tax, notary fees, and bank fees, typically amount to around 6% of the property price.

Example: If you buy a home for €400,000, you may need approximately €24,000 for additional costs.

Yes, most lenders in the Netherlands allow partial or full early repayment of your mortgage. However, there are certain rules:

1. Free Repayment Allowance:
• Many banks allow you to repay 10% to 20% of the original loan amount per year without incurring penalties
2. Early Repayment Penalty:
• If you exceed the free allowance, you may need to pay a penalty. The penalty is calculated based on the difference between your mortgage rate and the current market rate for the remaining loan term.

Fixed Mortgage Rates:

• The interest rate remains the same for a set period (e.g., 10, 20, or 30 years).
• Advantages:
  • Stability: Monthly payments remain consistent, making it easier to budget.
  • Protection: You are shielded from market rate increases during the fixed period.
• Disadvantages:
  • Higher initial rates compared to variable rates.
  • Limited flexibility: Refinancing may incur additional costs.

Variable Mortgage Rates:

• The interest rate fluctuates based on market conditions, often linked to a benchmark rate such as Euribor.
• Advantages:
  • Lower initial rates, which can save money if rates remain stable or decrease.
  • Flexibility to benefit from falling interest rates.
• Disadvantages:
  • Payments may increase if market rates rise.
  • Less predictable, which can complicate budgeting.

Yes, refinancing a mortgage in the Netherlands is possible and often done to take advantage of lower interest rates, reduce monthly payments, or access equity from your property.

Steps to Refinance Your Mortgage:

1. Evaluate Your Current Mortgage:
• Check your existing interest rate, remaining loan balance, and any penalties for early repayment.
2. Compare New Mortgage Options:
• Look for better interest rates or terms with your current lender or other banks.
• Consider factors like fixed vs. variable rates and associated fees.
3. Check Early Repayment Penalties:
• Most Dutch lenders allow free early repayment of 10% to 20% of the loan amount per year. Exceeding this limit may incur penalties.
4. Apply for Refinancing:
• Submit an application with the new lender, providing financial details and property information.
• The new lender may require a recent property valuation.
5. Pay Off the Existing Loan:
• The new lender will use the refinanced loan to pay off your current mortgage.