What’s the most you can borrow?

In the Netherlands, your maximum mortgage is based on five key factors:

1. Your income: this is the income that you are paid by your employer. It also includes any allowances you receive, such as an allowance for working irregular hours and a 13th month. If you have a partner who also earns income, their income will be included in the calculation.
2. Financial obligations: if you already have a loan or other financial obligations like a ground lease or child maintenance, the repayments on these will be taken into account when calculating your maximum mortgage.
3. Type of residence permit: you may still be eligible for an ABN AMRO mortgage even if you have a residence permit. In most cases, you’ll be able to borrow up to 100% of the value of the property. Make a no-strings-attached appointment to find out how we can help you in your personal situation.
4. The value of the property: in the Netherlands, you can usually borrow up to 100% of the value of the property. The value is determined by an independent appraiser, not the sale price. It’s important to be aware of this, particularly if you make an offer that’s higher than the asking price.
5. The mortgage: there are various types of mortgage to choose from, involving different loan portions and different fixed-rate periods. You can take out a mortgage that must be repaid within 30 years, but you might want to pay it off before the maturity date. We’ll discuss all your requirements and take a look at your options.

Not all of the costs of buying a house can be financed. The notary fees are a good example. It depends on how much leeway you have in your mortgage. If the offer that was accepted was below the appraised value, you may be able to finance some of the extra costs with your mortgage. But if your offer was above the appraised value, you’ll have to pay the difference out of your own pocket.

In addition, you have to pay property transfer tax in the Netherlands. There are various conditions attached to the level of this tax, relating to your age and the price of the property.

All these extra costs can mount up, so keep this in mind when setting your budget.

Alongside the five key factors, several other variables can affect your maximum mortgage potential.

• Energy label: you may be able to borrow more if the house has a good energy label. You could get a discount on your mortgage interest rate of 0.1% for label B, and 0.15% for label A.
• Sustainability: if you’re planning sustainable home improvements, such as installing solar panels or insulating your home, you may be able to borrow extra money.
• Dutch National Mortgage Guarantee (NHG): the Dutch National Mortgage Guarantee is only available for mortgages up to a certain amount, which is adjusted every year. In 2024, this is €435,000, and if you have plans for sustainable home improvements, it’s €461,100. The interest rate on a mortgage with a Dutch National Mortgage Guarantee is often lower than one without, and may differ by up to 0.5%.

I understand that as an expat, buying a house in the Netherlands can seem like a complicated process. But having the right information will help you to make a good decision. Remember that you can usually borrow 100% of the appraisal value of the property, and that you’ll need to finance additional costs yourself. Factors such as your income, financial obligations, the energy label of the house and any home improvement plans can also affect your maximum mortgage.

Take part in one of our free online information meetings, or arrange an appointment to check out your options. My colleagues and I look forward to helping you fulfil your housing dreams in the Netherlands!

Good luck in your search for a new home!

Kind regards,

Michael Tol, Mortgage Advisor for International Clients