Dutch mortgages explained 2

The amount of mortgage you can secure

Dutch mortgages explained 2

What determines the amount of mortgage you can secure?

The first criterion is your income.

Here is a table showing the amount you can reasonably expect against your gross annual income.




















5½ times salary

This is only a rough guide as what can actually be advanced does vary from lender to lender and by the term fixed for the interest rate.

Those with net incomes (Embassy, European Commission, Europol, ESA, EPO, etc.) can get a full mortgage but the table does not apply as a different calculation is done.

If you have other costs such as alimony or another loan (e.g. doorlopend krediet) then these tables do not apply as those expenses need to be taken into account to determine the mortgage you can raise.

The second criterion is the value of the house.

Open market value (vrije verkoopwaarde) This (hopefully) is the price you are paying or better. The full definition is the value on the open market determined by an independent assayer (taxateur) who is local to the area in which the dwelling is located and, therefore, has obvious knowledge of local market conditions.

Foreclosure value (Executiewaarde) This is the value that a mortgage lender can reasonably expect to recover if they ever have to foreclose on the mortgage and put the house up for auction. This is usually between 88% and 90% of the open market value..

With most lenders the maximum you could borrow would then be 125% of the foreclosure value or the amount determined by your income whichever is the lower.

If you are intending to renovate the property – subject to limitations determined by your income – you could add 70% of the costs to the value of the house and raise a higher mortgage accordingly.

However you need to instruct the assayer before he prepares his report as to exactly what the renovations will are as he needs to include those in his report.

What documentation do your require?

  • Proof of income. An original of an “employer’s declaration”. There is a standard form for this and we will be happy to supply you with one whether or not you arrange the mortgage with us. Also you need to produce a copy of a recent payslip.
  • If you are self-employed you will need to produce 3 years accounts certified by an accountant. Your income will be determined as the average over the last 3 years or the last year whichever is the lower.
  • Original of a valuation report. You pay the cost which is tax deductible.
  • Copy of the presale agreement (koopovereenkomst) once it is signed by all parties.
  • Copies of passports of those involved in the purchase.
  • If you have one – copy of your residency permit (both sides)


Peter Gibney is a consultant with Strategies based in Dordrecht. Strategies are a fully licensed insurance broker/financial advisor specialising in the expatriate market. Any questions arising from this series of articles or other none related matters may be directed to Peter on [phone] 078 844 0879 or {fax} 084 751 2944 or {e-mail}

This article has been submitted by Peter Gibney

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