How can I decide which mortgage is best for me?

Posted on by Katerina Triantafillou

If you are unsure of which mortgage is best suited for your needs, it is suggested that you seek advice from one of the following:

  • a bank or mortgage lender
  • an independent specialised hypotheek adviseur (mortgage broker)
  • a professional financial advisor

In helping you to determine which mortgage is most appropriate for your circumstances, you need to ask yourself the following questions:

  • How much do I want to borrow?
  • How much can I afford to pay each month?
  • How long do I want to take to pay off the mortgage? (This will be dependent upon a variety of factors such as your age, how long you intend to live in the Netherlands and the security over your future employment)?
  • When, how much and how do I want to redeem my mortgage?
  • Which risks do I want to be insured against?
  • What type of mortgage do I want?
  • How important are the overall interest costs, risks, flexibility and tax benefits to me?

How is the interest on my mortgage calculated?

Posted on by Katerina Triantafillou

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?

Posted on by Katerina Triantafillou

The requirements for getting a mortgage will depend on the bank or mortgage provider you choose. Generally, people originating from an EU member state country and who have a permanent employment contract do not experience any difficulties in getting a mortgage.

The bank will want to know about the property that you wish to purchase. They may ask for you to pay for an independent inspection report on the property before they make any decision on whether to grant you a mortgage.

For people from outside the EU, the bank may want to consider the following aspects:

  • The kind of residence permit you have
  • The level of security afforded by your employment contract and what type of job you have
  • Who is your employer? Generally, it is easier to get a mortgage if you work for a well-known, larger company than for a small company
  • How much you currently earn after tax and pension deductions (take-home pay)
  • What other significant expenses you currently have, e.g. paying for a car, any bank loans etc. and your general financial situation
  • The nationality of your partner (is he/she Dutch or not?)

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

Posted on by Katerina Triantafillou

It should be remembered that your house is considered by the mortgage lender as security against the loan. Therefore, effectively you do not own your house until the mortgage is paid off in full. Should you default on your monthly payments (due to personal circumstances, e.g. getting into debt, becoming unemployed or divorced), the lender has the right to repossess and sell your house to pay off the remaining debt. However, this is very much a last resort for the lender.

The banks will always explore possibilities with you to address your current difficulties, before taking the more drastic action of repossessing and selling your property. If a bank does decide to sell your house and the sale value is less than the remaining mortgage value, you will still be expected to pay off the difference (with interest).

The National Mortgage Guarantee (Nationale Hypotheek Garantie –NHG) is provided by the Homeownership Guarantee Fund (Waarborgfonds Eigen Woningen – WEW). The main aim of the fund is to promote the responsible purchasing of private property. Hence, if you take out a mortgage to buy a house, you may be eligible for the NHG coverage. The NHG is only applicable for mortgages up to a certain limit. A summary in English can be found at www.nhg.nl/english-summary/Information-for-consumers/What-is-nhg. You may have to check the Dutch version in order to find the current maximum value.

If you are forced to sell your property by your mortgage lender and the value of the sale is less than the original mortgage loan, then the NHG may settle your outstanding debt with your mortgage provider.

Can I claim mortgage tax deductions on my mortgage?

Posted on by Katerina Triantafillou

The interest that you pay on your mortgage might be hypotheekrenteaftrek (tax deductible) from your earnings. If you are on a Dutch payroll and are considered a resident taxpayer, meaning you pay taxes in The Netherlands, you are entitled to the same benefits that Dutch citizens have. The mortgage relief or tax deductible has always been a contentious issue in Dutch politics and this tax benefit may become more limited in the future.

For your personal tax situation, it is advisable to look at the Belastingdienst (Tax Authorities) website (in Dutch only) or contact them on the English speaking telephone help line by calling 055 538 5385.

How can I get water, electricity and gas connections?

Posted on by Katerina Triantafillou

In many cases, the utilities (gas, water and electricity) will already be available in your home and you only need to transfer them into your name. Your makelaar (real estate agent) will usually help you with transferring contracts of your new home to your name. We suggest you to bear in mind the following:

  • Note and check the meter readings when moving into another house as bills are based on the previous year’s consumption for the property. Discrepancies are corrected at the end of the year and refunds or additional bills are issued accordingly
  •  Gas and electricity are both supplied by the same provider; water is arranged separately
  • If the rent is inclusive, check your contract carefully for what is covered

Should you need to set up a account see below the pre-requisites:

  • A passport or ID card (proof of identity)
  • Proof of occupancy (rental contract, house deeds)
  • A bank statement or proof of residence available from the municipality’s personal records database (Basisregistratie Persoonsgegevens (BRP))

Please note that he Dutch energy market is privatised, thus enabling you to choose or change your supplier. Regulatory authorities ensure fair practices and tariffs.

Products, tariffs and services may vary from company to company. Should you decide to change company, remember to check and be aware of the conditions for cancelling a contract or switching providers. Here some tips for choosing a service provider:

  • Check the term of your contract to know when you can switch for free. If you want to switch immediately check the cost of doing it before the term in the contract ends
  • Check what you’re paying for electricity and gas as opposed to what you consume
  • Compare the prices and contracts of various energy companies
  • Determine whether you want the contract for a definite period or indefinite
  • Check whether you want grey or green energy
  • Check whether you have a fixed price or variable price to pay
  • Keep an eye on special promotions or discounts
  • Check the terms and conditions of the contract carefully
  • Check whether there are any hidden costs, for example, energy tax, standing charges and transportation costs
  • Check the payment options, for example what is the cost of paying by giro

Useful links

  • Find out which water company is covering your area at www.vewin.nl (enter your postcode on the top-right box ‘Zoek uw waterbedrijf’)
  • Compare energy suppliers in the Netherlands on  comparison sites such as www.pricewise.nl/energie-vergelijken/ (Dutch only) , www.gaslicht.com (Dutch only)  and www.independer.nl/energie/intro.aspx (Dutch only)
  • To know more about how to connect to all utilities and billing-related queries check Expatica on www.expatica.com/nl/living/household/utilities-netherlands-100581/

How can I get connected to telephone, Internet and TV?

Posted on by Katerina Triantafillou

In the Netherlands, telephone, Internet and TV are available digitally and/or via cable. Many providers offer bundles of all three services. It is important to bear in mind the length of your stay and your location, as not all providers have a complete country network. Satellite television is also an option, but you need to fix a satellite dish in the right direction and there are regulations covering this

For both landline and mobile telephone, there are several providers offering subscriptions. For mobile phones, you can also choose for a prepaid option instead of a subscription but they are usually more expensive. Top-up cards can be bought at most telephone stores and supermarkets. It is also possible to top up your prepaid credit via the Internet and by phone. Nowadays, if you have a subscription with a mobile company in an EU country you can use internet and phone calls at the usual rates. Calls within the EU have no roaming costs anymore.

It is advisable to compare price, quality and always read the small print. You can compare tariffs and conditions at the following websites:

  • For All-in-1 bundles & Internet+phone subscriptions visit: Breedbandwinkel.nl/expats (in Dutch only)
  • For a comparison of prices of different providers visit: Bellen.com (in Dutch only) or Prijsvergelijken.nl/compare-broadband

For your information 0800 numbers are toll free; 0900 numbers are charged (per call or minute).

Are there any special rules for collecting household waste?

Posted on by Katerina Triantafillou

In many cities households have two separate waste containers: green for waste from vegetables, fruit and garden (groente-, fruit- en tuinafval, GFT) and grey/brown for all remaining waste (restafval). Both containers are emptied once a week or alternating weeks. If your municipality has decided that household waste should be compulsorily separated, you will receive a fine for non-organic waste placed in the green container.

You need to put your waste/bins outside your house at the time set by your municipality. If you don’t, you may be fined.

Glass, paper, plastic and clothing/textiles, medicines and batteries, small electrical appliances and bulbs can be deposited in special containers in your neighbourhood.  Bottles and cans should be returned for cash. Other types of waste (oversized household waste, domestic chemical waste etc.) can be brought to one of the city’s garbage and recycling stations.

If you live in an apartment building with rubbish bins or underground containers, you can throw away your rubbish in these containers anytime. Be aware of any specific rules that may apply to the tenants of the building.

What factors should I take into account before buying a house or apartment?

Posted on by Katerina Triantafillou

A very important factor when buying a property is that you are clearly aware of the property’s legal standing. This means that you need to check whether it is eigen grond (freehold) or erfpacht (leasehold) property. If your potential house is freehold, then you fully own the plot and the house. Leasehold would mean that you only own the house but not the plot (this is the case for apartments as well). This means you will be paying an annual fee for renting the plot. Your real estate agent can provide this information.

Existing houses are usually sold as ‘kosten koper (kk)’. This means that all additional costs such as overdrachtsbelasting (property transfer tax) and notariskosten (notary costs) must be paid by the buyer.

New houses are usually sold as ‘vrij op naam (V.O.N.)’. This means that the purchase price includes BTW (VAT), property transfer tax and notary costs.

Bouwtechnisch onderzoek (construction inspection)

It is strongly advised to ask an expert for a bouwkundig onderzoek (construction inspection). This person will check things such as:

  • crawl space (if accessible) and floors, drainage, ventilation, piping in crawl space
  • state of the facades, roof, chimneys, window frames, gutters, roof, and chimneys
  • determination of the presence of lead pipes and risk carbon monoxide
  • fire safety and asbestos suspected.

The real estate agent who sells the house often recommends someone to do this. However, this person may not be independent. Therefore it is best to ask your own real estate agent for an expert. If you don’t have a real estate agent it may be useful to ask advice from the Vereniging Eigen Huis https://www.eigenhuis.nl/#/ (Dutch only). This is an interest group for home owners

Things to consider when buying a house or apartment

When buying a house or apartment, take the following things into consideration:

  • Research appropriate neighbourhoods considering: housing prices, access to public transportation, green spaces, distance/time to your work, location of schools
  • View properties during the day then again in the evening to notice any potential problems and have a sense of the area
  • Limit your viewings each day
  • Be sure to take photos and jot down notes
  • Ask questions and strike up conversations with the estate agent, the seller and people in the area
  • Take into account your estate agent’s advice
  • Inquire about: who owns the property, how long it has been on the market, how many viewings there have been, how many bids have been made, why it is for sale, and how quickly it needs to be sold
  • If possible, do not get into a bidding war and avoid sealed bid offers

What costs are involved in buying a house or apartment?

Posted on by Katerina Triantafillou

It pays to visit a bank or mortgage broker for free advice before you start considering buying property to get an idea of the total costs involved. In general, about 10% of the purchase price will be needed on top to pay for various taxes and fees:

  • Hypotheekkosten (mortgage fee): around 1%
  • Taxatierapporten (valuation/appraisal costs): if a mortgage is needed. Costs between 300-1,000 euros
  • Makelaarkosten (real estate agent fees): not always involved but if it applies, costs vary between 1-2 percent of the price of the property
  • Notariskosten: the notaris (notary) is needed to register the sale and the mortgage. It is usually between 1,000-3,000 euros

Note that the deposit on the property is 10% of the purchase price, paid six weeks after the purchase agreement has been signed. This may be replaced by a bank guarantee issued by a Dutch bank.

What other costs should I consider before buying a house in Netherlands?

Posted on by Katerina Triantafillou

When you buy a house, you have to pay the overdrachtsbelasting (property transfer tax) which is calculated based on a fixed percentage of the sale price agreed with the seller. No overdrachtsbelasting has to be paid if you get (part of) a house through divorce, marriage or inheritance. Currently (2021) the overdrachtsbelasting (transfer tax) is 2%.