Mortgages in the Netherlands

Find out everything you need to know to get a mortgage in the Netherlands.

Home Overseas Mortgages Mortgages In The Netherlands
Pete Mugleston

Author: Pete Mugleston

Mortgage Advisor, MD

Updated: April 8, 2024

Since the typical rent for a small apartment in Amsterdam is around €1,750 a month, many UK citizens who move to the Netherlands are keen to buy a place of their own as soon as possible.

Getting a mortgage in another country can be challenging. The rules are different, the paperwork is often in another language, and there will be more administration involved than buying in your own country. So, we’ve outlined what you need to know about mortgages in the Netherlands before you apply.

Can a UK citizen get a mortgage in the Netherlands?

Yes. UK citizens can get a mortgage on a property in the Netherlands as long as they can prove their residency there. So, you’ll need to have a Dutch residency permit. You’ll also need your citizen service number (BSN). If you’ve just arrived in the Netherlands and don’t yet have one, you’ll need to register in the municipality that you live in to receive one.

It’s very difficult to get a mortgage in the Netherlands if you don’t live there. So, it’s not a great choice for people based in the UK hoping to invest in property in the EU. If you’re interested in your other options, read our guide to overseas mortgages.

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Rules, deposits, and lending criteria

There’s no such thing as an expat mortgage in the Netherlands. So, you’ll be applying for the same mortgages as Dutch citizens and, in theory, the lending requirements are the same. In practice, you may find that lenders are a little stricter in applying their lending criteria for expats, and for other applicants considered higher risk, like the self-employed.

Here’s a summary of the typical rules:

Residency

Most lenders will only consider applications from people who have lived in the Netherlands for a minimum of six months already. So, if you’re willing to rent for your first few months in the country, you’ll find you have a lot more options when you apply for a mortgage.

Employment

Ideally, you should have a permanent contract of employment. If you’re a temporary worker, you may need a letter of intent from your employer stating that they plan to renew your contract when it ends.

If you’re a business owner, your company must be registered with the Dutch Chamber of Commerce, and you’ll need three years of accounts. Freelancers and self-employed people will need adequate proof of their income for the last two-to-three years.

Income

There’s no official minimum income requirement, but some lenders will require your income to be paid in euros. Or, if you receive your income in a foreign currency (e.g. pounds sterling), they may only consider 90% of it when deciding how much you can borrow. This is to allow for fluctuations in the exchange rate.

Deposit

Mortgages in the Netherlands are available for up to 100% of the property value. However, it’s not always possible to borrow that amount and lenders may require a deposit. This is more likely if you’re a non-EU citizen.

How to get a mortgage in Holland

Here’s our three-step process for buying your home in the Netherlands.

Check that you can afford to buy

Since 100% mortgages are common in the Netherlands, many people assume they can afford to buy a home. However, even if you qualify for a mortgage at this level, the other costs of buying typically add up to 4-6% of the property purchase price. These include:

  • Transfer tax (2% of the purchase price. Buyers under the age of 35 are exempt on purchases under €440,000)
  • Mortgage valuation (€300-1,000)
  • Structural survey (€300-900)
  • Mortgage arrangement fee (varies between lenders)
  • Notary fee (€1,000-2,000)
  • National Mortgage Guarantee (0.6% of the mortgage amount. Optional protection if you’re unable to pay your mortgage, available on properties up to €405,000)

You’ll also need to put down a deposit of 10% of the property value when the seller accepts your offer. You can either pay this in cash or provide a bank guarantee. If you back out of the sales agreement without a valid reason, this will be paid to the seller.

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How much could you borrow?

In the Netherlands, you can usually borrow up to five times your income. If you’re applying with another person, most lenders will consider 100% of the higher earner’s income and 90% of the lower earner’s income. So, if one partner earns €100,000 and the other earns €50,000, you could be able to borrow up to €725,000.

If you’d like to estimate how much you could borrow, try our mortgage calculator.

Mortgage Affordability Calculator

Use this calculator to determine how much you could potentially borrow for a mortgage, based on the typical salary multiples used by most UK lenders.

Input full salaries for all applicants
£

Your Results:

You could borrow up to 

Most lenders would consider letting you borrow

This is based on 4.5 times your household income, the standard calculation used by the majority of mortgage providers. To borrow more than this, you will need to use a mortgage broker to access specialist lenders.

Some lenders would consider letting you borrow

This is based on 5 times your household income, a salary multiple you might struggle to qualify for without the help of a broker. This income multiple is not widely available to customers who are applying directly with a lender.

A minority of lenders would consider letting you borrow

This is based on 6 times your household income, a salary multiple you will struggle to get without a broker. Six-times salary mortgages are usually only available under very specific circumstances.

Get Started with an expert broker to find out exactly how much you could borrow.

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Lenders in the Netherlands

You can get a mortgage with one of the major Dutch banks, including ABN AMRO, ING, Rabobank, and SNS. However, most of these only offer mortgage information and applications in Dutch. So, it helps to have an English-speaking broker to guide you through the application.

The major banks also tend to favour Dutch citizens. You may be able to get a more competitive rate by applying to a smaller bank, an international mortgage provider, a pension fund or insurance company. Your international broker will be able to make a recommendation that best suits your circumstances.

Buy-to-let in the Netherlands

It’s not easy to get a buy-to-let mortgage in the Netherlands. First, you must:

  • Be an EU citizen
  • Earn more than €45,000 a year
  • Have lived and worked in the Netherlands for three years

You’ll also need a deposit of around 30% of the property value. You can get an interest-only mortgage for up to 50% of the property value, while the remaining 20% must be repaid over 10 years.

Plus, you’ll need to show that the rental income of the property exceeds the mortgage repayments by 25%. Buy-to-let mortgage rates are higher than standard mortgage rates and your other costs will be higher too (for example, the transfer tax will be 10.4%)

Note that both Amsterdam and Rotterdam have rules that prevent investors from buying cheaper homes to rent out. In Amsterdam, you cannot buy a property for under €512,000 unless you plan to live in it or let it to a close relative. In Rotterdam, the limit is €355,000.

Speak to a broker who specialises in Dutch mortgages

If you’re ready to start the process of getting a mortgage in the Netherlands, you’ll need to find the right international broker. This should be someone who specialises in the Dutch market for British buyers.

We work with numerous brokers who meet this description so, if you’d like to speak to one, just give us a call on 0808 189 2301 or enquire online.

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FAQs

Yes. If you want to buy a new home before you’ve sold your existing home, you can get a bridging mortgage. This allows you to use your equity in your current home as security to buy the new one. However, lenders will consider this high risk and you’ll pay a lot in interest. It’s worth speaking to an expert to see if this is your best option.

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for Online Mortgage Advisor of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

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