Your expat roadmap to a Dutch home

Buying a house and arranging a mortgage are serious milestones in life. And when you're an expat, the whole process can feel even more overwhelming - a new country, new (sometimes unwritten) rules, and of course, that quirky little language they speak here in the lowlands.

There's no need to panic, though. Here's a straightforward guide to clear things up and walk you through the key elements that make the Dutch mortgage system unique.

Peace of mind: What the Dutch government does for you 

Let’s kick things off with some good news: the Dutch mortgage system is rock-solid. And that’s not by accident - the government keeps a really close eye on things to make sure everything stays fair and safe. 

In the Netherlands, you’re not just seen as a borrower, you’re seen as a consumer who deserves protection. So instead of wild-west lending practices, you get rules, structure, and peace of mind. 

Here's what that means for you in real life:

• Every bank or mortgage advisor you deal with is heavily regulated. No sneaky stuff. 
• Clear rules help determine exactly what you can borrow, so no false promises or vague offers. 
• You’re required to get expert advice before signing anything, so your mortgage is built around your needs. 

Basically, the system is set up to support you - and to stop you from biting off more than you can chew. Feels good, right?

How much can you borrow?

Here in the Netherlands, your borrowing power is all about balance - what the house is worth and what you earn. Two key concepts help figure that out: loan-to-value (LTV) and loan-to-income (LTI).

Loan-to-value ratio

You can borrow up to 100% of the property’s value. Pretty generous, right? But note: it’s 100% of the appraised value, not the purchase price. And costs like taxes and notary fees? Those come out of your own savings. 

Now here’s a fun Dutch twist: the better the energy label of the home, the more you’re allowed to borrow. Yep, being green pays off! If your dream place has a poor energy label, you can even get extra funds (as a loan) to upgrade it.

Loan-to-income ratio

This one’s about how much of your income goes to mortgage payments. Usually, it’s around 20-30% of your gross annual income. So if you make 100.000 euros a year, you can spend about 25.000 euros on your mortgage - interest and repayments included.

Of course, if your salary includes bonuses or future raises, things get a little trickier. That’s where a good advisor comes in handy.

How the Dutch mortgage process works

This might surprise you: in the Netherlands, you don’t get pre-approved before shopping for a house. Instead, things get real after you’ve agreed on a home. 

That means you need to understand what you can afford before you make an offer. Sounds stressful? Not with the right tools and a good financial advisor.

Good-to-know mortgage conditions

Here are a few extras that might not be on your radar, but could make a big difference.

Mortgage term: Most Dutch mortgages run for 30 years - but like anywhere, there’s some wiggle room if you need it.

Interest rates: The Dutch love stability, so fixed interest for at least 10 years is preferred. Shorter terms are possible, but may mean a slight reduction in how much you can borrow. Your lender will do a quick stress test to be sure.

Transfer tax: There’s a 2% transfer tax when buying a home - unless you’re a first-time buyer aged 18 to 35. Then you might pay… zero.

NHG (National Mortgage Guarantee): This one is super Dutch. If your home costs up to 450.000 euros, you might qualify for NHG - a government-backed safety net that protects you if life throws you a curveball (job loss, divorce, etc.). Bonus: lower interest rates! This is because lenders consider these mortgages to be very low risk.

Tax advantage: If you choose a mortgage with a repayment structure (not just interest-only), you’ll likely qualify for a juicy tax benefit. It’s the Dutch government’s way of saying: “Thanks for being responsible”.

Know your stuff

Now that you understand the nuts and bolts of how Dutch mortgages work, you can get on with buying that house! The Dutch often don't realise how unique their mortgage system is, so if it all still sounds a bit complex and you’d like expert advice, make sure your financial advisor is used to working with expats. That way, they know which bits need extra explaining, even when it's standard practice to the locals.