ACCESS NL > Housing in the Netherlands > Mortgages in the Netherlands > How is the interest on my mortgage calculated?

Mortgages in the Netherlands

How do I get a loan for buying an apartment or a house?

Are there restrictions on how much I can borrow for my mortgage?

What are the types of mortgages available in the Netherlands?

How can I decide which mortgage is best for me?

How is the interest on my mortgage calculated?

The amount of interest you pay on your mortgage is based upon the interest rate agreed with your bank or mortgage lender which is applied to the value of the loan. Most Dutch mortgages are offered for up to a term of 30 years. Within the term, the bank will normally allow you to choose how long you wish to fix the rate of interest on your mortgage. This can typically be anywhere from one to 20 years. Hence, if you think the current interest rate will be reduced in the future, you may elect to fix the rate for only a few years. Conversely, if you think the interest rate will go up in the future, you may wish to fix the rate for a longer period. It should be noted that banks will offer a spread of rates depending on the duration that the rate is fixed. The interest rate quoted will typically rise with the increasing length of time that it is fixed; this is to cover the lender’s risk if the benchmark interest rate (set by the European Central Bank) rises in the future.

At the end of the fixed rate period, you are entitled to agree to a new fixed rate with your lender.

What type of information is required when getting a mortgage?

When do I start to repay my mortgage?

What happens if I find that I can no longer afford to pay my mortgage?