Buying a house in the Netherlands
Have you seen a new home and would like to know if it is within your reach? Or do you already own property in the Netherlands? You’re more than welcome to visit our office for a free appointment to identify the best mortgage available to you whether it be to increase or begin your Property Portfolio.
Most people who want to buy, build or renovate an existing home need a loan to do so. A loan you take out for your home is called a mortgage. You pay interest on what you have borrowed, while you usually repay the loan over a period (‘term’) of thirty years. Shorter and longer terms are also available, but mortgage interest is tax deductible for no more than thirty years.
How much you can borrow depends on a number of different factors. These factors include, your income, the value of the property you wish to purchase, your anticipated future outlook, your preference in repayment method and any additional expenses involved in the purchase process. We can use these factors to give you a calculation of how much you are likely to be able to borrow over your chosen term from each mortgage provider in the market.
The next step is to assess the various mortgage options available to you and select your preferred provider. We will ensure the best possible mortgage is chosen for your specific needs.
In order to best benefit from taxes, it is best to begin paying off the loan promptly after the sale is complete. Therefore only two main mortgage types are to be considered. But sometimes a mortgage with interest-only is more fitting to your situation. Both mortgage types will be discussed with you in full to ensure a clear understanding.
Linear mortgage (lineaire hypotheek)
The borrower repays a fixed sum each month, which covers the interest and a slice of the capital. Repayments are fixed over the entire period.
Annuity or repayment mortgages (annuïteiten hypotheek)
The borrower repays a fixed amount of the capital each month, plus a fluctuating amount of interest. Repayments will go down over the loan period.
Mortgage interest rates move in line with economic developments.You can choose the length of time that the interest rate will apply for your mortgage. So you know exactly how much interest you will need to pay each month for that period. The period you choose is called the ‘fixed rate period’. Alternatively, you can opt for a variable or floating rate of interest, which means the interest rate may change each month. If interest rates go down, you’ll be better off with a variable rate mortgage. However, if rates go up, you’ll pay more than if you had fixed the rate. A variable rate also means you will not be sure how much you will be paying each month. If predictability is very important to you, the best option is to agree a fixed interest rate for the entire term of your mortgage.
For example if you fix the rate of interest for ten years. When the ten years are up, your interest rate is adjusted to the rate applicable at that time. You have to agree than with a new period for the fixed-rate. This new rate may be higher or lower than what you were paying in the first ten years.
A Martgage with National Mortgage Guarantee Scheme (NHG)
NHG Offers secure and affordable home loans. You pay less interest with an NHG mortgage than with most other mortgages. The scheme also provides protection under certain circumstances. But this will all be discussed in detail during your consultation.
In this first appointment we will discuss your requirements, your financial position and the main options available to you going forward, We will then look to make a second appointment to present the specific mortgages available to you over your chosen term and preferences.
Our clients include both Dutch Nationals along with those settling in the Netherlands and looking to buy their first home.
Please do not hesitate to make the first step to buying your new home, Give us a call. Our goal is to help you attain your ideal property and help you every step of the way.