Financing your home in The Netherlands
How to get a mortgage
Netherlands - Property
Renting is an expensive business and especially if you intend to stay for a longer period in The Netherlands, it may be worth considering buying a house. With interest rates being low, you could find yourself paying less per month on a mortgage than on rent.
Once you’ve found your dream house, it is time to go and find the appropriate finance. Then the worrying starts. You may not always receive the warm welcome from the bank that you are entitled to. Dutch people are used to getting the maximum mortgage possible for their house. Interest payments can be deducted from their income taxes and therefore it is often financially beneficial to get the maximum amount they can borrow and repay as little as possible on the actual capital.
But when you are not Dutch, banks have an entirely different attitude. Banks have been burned in the eighties when the housing market temporarily crashed and many foreigners, upon returning to their home countries, found themselves unable to repay the mortgage fully. Some of them actually left the house key in the letterbox of the bank and disappeared. The result is that banks are slightly apprehensive when an expat show up at their counter, especially when they have not been working and living here for a number of years. When on top of being “a foreigner”, you also have a temporary contract of employment, the bank employee maybe even wearier. If you are lucky enough to get a mortgage offer from the bank, you may find that it does not lend you as much money as you would need (the purchase price of the house, plus the costs of buying, such as taxes, agent and notary fees etc.) Or the bank will lend you the full amount you need, but requires you to reduce your mortgage amount at such speed, that the payments will be unbearably high.
But here’s the good news. Our office has many years of experience with “expat mortgages” and with several banks we have reached a good understanding and working relationship. We have managed to make special arrangements with these banks and can now offer mortgages for the international community with conditions equal or similar to those offered to nationals.
Please feel free to contact us. We are always happy to look at your personal financial situation at no charge.
De Boer Financial Consultants
José de Boer MFP
www.fvbdeboer.nl (bilingual site)
This article has been submitted by José de Boer
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