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Mortgages for internationals

Always the best match

M/V Works is an intermediary for more than thirty mortgage lenders. This arrangement allows us to advise you completely independently and - after you have made your choice - we arrange your desired mortgage from the beginning to the end, guiding you through the whole process and answering all your questions along the way.

We arrange the entire process

Whether it concerns your first home, a pied-á-terre, holiday house, second apartment for rent (buy-to-let or keep-to-let), or your ultimate dream home, we arrange the mortgage that best suits your situation. You might be only at the beginning of your career (and banks are therefore hesitant), or have a temporary contract, or part of your income comes from a different geography or currency. No problem. We look for matching solutions and lenders who offer the right products.

Mortgages in The Netherlands, in brief 

Types of mortgages, repayments, and interest rates

A mortgage is a loan used to purchase a home or other type of real estate, where the property serves as the collateral for the loan. The borrower pays a monthly payment that consists of a principal and the interest. The type of the mortgage, the amount of monthly payment, and therefore also the total cost of the mortgage, varies depending on a number of factors.

Annuity

Through the whole duration of the fixed interest-rate period you pay the same gross monthly payment made up of interest and the capital repayment.

Linear

The monthly payment consists of interest and repayment of the capital but it decreases over time. The principal repayment stays the same, but the interest expense lowers as the debt decreases.

Interest-only

You are required to make monthly payments only on the interest on the loan. The principal is payable at the end of the mortgage. This type of mortgage can be offered only under specific conditions and may influence the tax relief entitlement.

Duration, loan-to-value and buyer’s costs

30 years, 20 years, 10 years or even shorter

The maximum duration of a mortgage in The Netherlands is 30 years. Due to the specific personal situation of the borrower, a shorter term may (or may not) be beneficial. During these 30 years you may opt for a variable or fixed interest rate for a shorter term.

loan-to-value ratio

The maximum amount that you can borrow is 100% of the value of the house, 106% if you use the additional 6% to finance energy-efficiency measures. Lenders offer different interest rates depending on the ratio between the market value of the house and the mortgage amount. Investing your own money in the property might be to your advantage, as it will lower the mortgage amount and the interest rate. 

Buyer's costs

The price of the house is often accompanied by the abbreviation ‘kk’ – kosten koper. The buyer’s costs include transfer tax and civil-law notary fees, fee for the estate agent, valuation costs, and costs for mortgage advice. On average, you spend about 6% of the home value on additional costs. Part of the fees is tax deductible.

What are your interest rate options?

Whether you should go for a variable-rate or fixed-interest mortgage will depend on your preferences: guaranteed stable monthly mortgage payments or the flexibility of adjusting the mortgage in the case of a change in circumstance.

Fixed interest rate

You can decide to fix the interest rate for a specific period of time, either short term or for a period of 5, 10, 20 or even 30 years. You will pay the same amount every month regardless of changes in the market. This is a good option if you want stability in your monthly payments. The interest rates can differ per lender.

Variable (adjustable) interest rate

These mortgage rates change following the market rate and can vary from month to month. You can benefit from it when the interest on the mortgage market goes down and you have the freedom to fix the interest rate at any time. The downside is that you’re not protected if mortgage rates go up.

Please feel free to contact us

Get in touch with us to learn more about the mortgage rules in The Netherlands, the documents to start your mortgage application and gain some important tips to ensure a smooth mortgage process.

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