Are you an expat in the Netherlands looking to buy a home? The housing market might be confusing, but the chances are that you can access more mortgage options than you realise. If you take the time to consider all your options from the outset, you can secure a competitive mortgage and save money in the long run.
This guide will walk you through how to determine your eligibility, explore your mortgage options and choose the right advisor to help you understand the Dutch housing market.
Step one: Check if you qualify for a mortgage
The first step in your home-buying journey is understanding whether or not you qualify for a mortgage in the Netherlands. There are two ways you can check this:
- Use an online eligibility tool. These online calculators are quick to fill out and give you an instant overview of your status.
- Ask your bank. Your bank can also give you an indication of you eligibility for a mortgage. Keep in mind, however, that banks will only present their own products, which limits your options.
Step two: Explore your full options
Many expat's first stop when thinking about buying a house is to discuss their mortgage options with their bank. This isn't a bad start, but when the bank says "yes", don't stop there! Relying solely on your bank can mean missing out on more competitive mortgage deals from other lenders.
Most Dutch locals work with an independent financial advisor in order to get a full overview of all of their options. Unlike banks, independent advisors aren’t tied to selling their own mortgage products - they work for you, the client, to find the best deal.
Whether you go to a bank or an independent advisor, both are required to charge a fee for their advice and arranging your mortgage. So if you only talk to one, why not choose the one that will give you all of your options from the outset?
As a highly-skilled knowledge migrant, you probably qualify for mortgages with a wide range of Dutch lenders. How many? That depends on:
- How long you’ve lived in the Netherlands; and
- The loan-to-value ratio (LTV) - how much you want to borrow compared to the value of the property.
You'll need to explore all possible lenders to maximise your chances of securing the best mortgage.
Step three: Choosing the right mortgage advisor
As explained above, having an independent mortgage advisor can open up a wider range of mortgage options for you. In addition, they can:
- Compare lenders to find the best match for your situation.
- Help you understand acceptance criteria unique to each lender.
- Secure the most competitive interest rates.
- Clarify specific conditions, such as the ability to rent out your property while abroad.
There are many mortgage advisors in the Netherlands. To help you choose the right one for you, these are the key criteria you should consider:
- Online reviews. Look for advisors with strong reviews from other expats. Third-party review sites like Google and Trustpilot are great starting points.
- How many lenders they work with. Advisors who partner with more lenders can offer a wider range of mortgage options.
- Advisor fees. While fees vary, don’t automatically choose the lowest-cost option. A slightly higher fee could result in far better advice, more services and monetary gains in the long term.
- Services included. Does the advisor assist with additional services, such as insurance or financial planning? Understanding what’s included in their fee can help you compare value.
Take the time to compare the offerings of advisors and balance their fees with their expertise and services. Remember that a higher-quality advisor can save you thousands of euros in the long term. For example, they may be able to secure you a lower interest rate, reducing your monthly payments, or they take the time to find a mortgage that allows you to rent out your property while you’re abroad.
By prioritising value over cost, you can make smarter financial decisions and enjoy peace of mind.
Getting the right advice can lead you to the best mortgage
Buying a home in the Netherlands as an expat is an exciting step, but it requires some preparation. By exploring your options and working with the right professionals, you can secure a mortgage that meets your needs and sets you up for financial success.