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Your maximum mortgage in 2023
2023/02/28 | By A&H Finance | Photo by Geluct
Buying a house in the Netherlands can be a dream come true for you as expat, but it can also bring a lot of challenges when it comes to finding the right home and financing it. Let’s help you navigate the world of Dutch mortgages by providing you with some useful information.
Factors that influence your maximum mortgage
The Dutch organisation Nibud sets the allowed housing cost ratio (Dutch: Woonquote) annually. This ratio indicates the percentage of your income that you may spend on housing costs and has to be used by all mortgage providers to determine your maximum mortgage. The height your maximum mortgage depends on the total income that you earn and the current mortgage interest rate. Additionally, you can lend up to 100% of the market value of your dreamhouse.
First indication with our online mortgage calculator
If you’re thinking about buying a house in the Netherlands, it’s important to start your search with confidence and a solid understanding of what you can offer on the real estate market.
A&H Finance built a simple Dutch mortgage calculator, which is easy to use and will help you understand the impact of interest rates and is based on the rules of the National Institute for budget information (Nibud). For a personalized touch, connect with our knowledgeable mortgage advisers for a complimentary assessment of your financial options.
Increased availability of houses and reduced competition
The slowing housing market is advantageous for you as expat. There is an increased availability of homes for sale and less competition, improving one’s chances of success. Perhaps even more important is that the excesses of an overheated housing market, such as bidding higher than the asking price and having multiple people view the property simultaneously, are occurring less frequently. A&H Finance offers an all-in-one package with a buying agent to enhance your purchase success.
What about the future interest rates?
To predict the development of mortgage interest rates, you essentially need a crystal ball. Forecasting the future of mortgage interest rates is difficult, and it is for advisers only possible to make informed guesses based on the current information available. The final decision is up to mortgage providers, who will follow the European Central Bank (ECB).
Selecting your interest rate
The interest rate is a factor that determines the maximum amount you can borrow. A higher interest rate leads to higher monthly payments and a lower maximum mortgage amount. Mortgage advisers of A&H Finance will assist you in selecting the best option for your personal situation.
30%-ruling: an advantage?
Mortgage lenders in the Netherlands evaluate your borrowing capability based on your gross income. As a result, as expat with a 30% ruling, you don’t receive any special consideration when applying for a mortgage. Nonetheless, some banks are willing to provide you with an extra mortgage that exceeds the maximum amount allowed for the time that your 30% ruling lasts.
An exciting year for expats
The slowing housing market and a decrease in competition have created a more favorable environment for buyers. Before making any big financial decisions, it is important to have a clear understanding of your mortgage options. The mortgage calculator gives a good first indication, but for a personalized free assessment; connect with our experienced mortgage advisers via