Buying a house is a big responsibility, and the mortgage process in the Netherlands is not an easy one. There are a lot of things you need to be aware of. To make things easier for you, here is a useful list:
A Dutch mortgage in 8 steps
- Before house hunting, have a (usually free) consultation with a mortgage provider to define your budget and whether you meet the requirements for a mortgage. At this stage, you can get a good idea of whether you are eligible or not.
- Look for a property, either independently or with a real estate agent. Make sure you choose a building in good condition, within your budget and in the right location.
- Make an offer on a property. If accepted, you will meet the vendor at a notary’s office to sign the purchase agreement (koopovereenkomst). You may also be required to pay a deposit to the notary within a few weeks of signing. This can be a money transfer of 10 percent of the purchase price or it can also be a bank guarantee (often arranged by your mortgage broker or bank). Ensure there is a clause that the agreement is non-binding if you can’t get the funding. Define the settlement period, usually between 30 to 60 days.
- Apply for a mortgage (see types of mortgages in the Netherlands).
- Source and submit all necessary documents to your mortgage provider.
- Attend the settlement appointment at the notary to sign the property title deed with the vendor and mortgage act with the bank. The notary handles the money transfer.
- Begin your monthly payments including insurance premiums, if you selected them.
- Move in, set up the utilities and enjoy your new home!
Understand your mortgage
It is very important to understand how your mortgage works. For example, is it possible to sell your property at any time? Can you repay the mortgage earlier than 30 years if desired? To avoid any unpleasant surprises you are highly advised to contact an expat-friendly mortgage provider in the Netherlands.