Mortgages: Buying a home in the Netherlands? Here’s a step-by-step guide on how to secure a mortgage in the Netherlands.
Step 1: Determine your budget
We advise you to talk to one of our preferred suppliers in mortgages before you start looking for a suitable home. This is free of charge and it will give you an accurate assessment of the price range that fits your budget and the monthly payments related. That way you can act quickly when finding the perfect house and start negotiating about price and terms right away.
The appointment can be made at a time and place that suits you best. Please use our contactform below to set up an appointment.
Within one week of the appointment you can expect to receive the following information/documents:
– A summary of the meeting
– A First General Mortgage Report that includes:
1. An indication of the maximum amount you can borrow
2. Details of the price range in which you can afford to buy a home
3. Calculations setting out gross and net (monthly) expenses with different mortgage constructions and different fixed terms on interest.
Step 2: Looking for a property
You contact us right away. We strongly advise you to do so since we have access to an intranet that offers objects before they are shown on the different search sites. You will be informed by your agent about available houses based upon your profile. He arranges the appointments and gives you the full service for each object that you want to visit.
Step 3: Bidding and buying of a property
When buying a house in the Netherlands, the purchase will in most cases relate to one of the two types of immovable property described below:
1. The purchase of a house, registered independently as a whole at the land registry.
2. The purchase of an apartment right, registered as such at the land registry and managed by the board of an Owners’ Association (VvE). An apartment right consists of part of a whole apartment complex. You will often come across this situation in cities like Amsterdam, Rotterdam, Utrecht and The Hague, for instance.
You have a statutory right to cancel the contract of sale within three days of signing it, without giving reasons (cooling off period).
A civil-law notary is always involved in the purchase and sale of immovable property.
The property buyer is entitled to appoint the civil-law notary of his or her choice. We will be glad to help you find a suitable civil law notary!
As a rule of thumb, the buyer’s costs usually amount to around 6% of the purchase price for the immovable property.
The contract of sale sets out information about the house, the price, the obligations of the buyer and the vendor, the date of conveyance and the guarantee. The guarantee comprises a 10% down-payment to the civil-law notary’s escrow account.
That 10% can be paid in cash to the civil-law notary’s third-party account if sufficient liquid assets are available. Another option is to guarantee the 10% by a bank guarantee.
The contract usually includes a clause stating that the agreement is subject to financing being arranged. That dissolving clause specifies the amount of time you have to arrange financing so that the purchase can proceed. If you do not succeed in obtaining a mortgage within the agreed period (4-6 weeks in general), you can unilaterally terminate the contract. You will however need a written statement from two banks confirming that they have rejected your application for a loan.
Buying a home and the accompanying costs
The price of a house in the Netherlands is always followed by an abbreviation, either ‘KK’ or ‘VON’. ‘KK’ means that all of the costs related to buying a house are paid for by the buyer (‘Kosten Koper’, or ‘purchasing costs payable by the buyer’). ‘VON’ stands for ‘Vrij op naam’, or ‘purchasing costs payable by the vendor’, which in most cases only applies if you are buying a newly build property.
For that reason, we will concentrate on ‘KK’
These costs include:
- Transfer tax (2%)
- The costs of registering the property in your name and having that information filed in the usual registers (civil-law notary).
- The costs of your estate agent
- The fee of a mortgage provider
- The National Mortgage Guarantee costs (if applicable)
- The costs of registering the mortgage in the usual registers (civil-law notary).
- The costs of the valuation/appraisal provided by an independent surveyor
- The bank guarantee costs (if applicable)
- The costs of an structural survey (if applicable)
Step 4: Preparing your mortgage application
When preparing your mortgage application we will need the following information from you:
1. Information about you personally
2. Information about the to be mortgaged property
3. Information to substantiate your financial position
1. Necessary information about you personally
• A copy of your passport
• A copy of your residence permit*
2. Necessary information about the mortgaged property
• Copy of the purchase-agreement, signed by both parties
• Original valuation/appraisal report
• Structural survey report (if required)
3. Necessary information to substantiate your financial position
• Employer’s declaration. A statement made by your employer confirming your annual income based on salary, bonuses and fringe benefits.
• Salary specification. Your monthly pay slip, which will correspond to the information given in your employer’s statement, and which will also show aspects such as the 30% ruling, expenses, payable taxes, etc.
• Statements of savings accounts or loans, investment portfolios and property owned outside of the Netherlands.
Step 5: becoming owner at the notary
In the Netherlands it is not allowed to transfer the ownership of a house in the Netherlands without engaging a civil-law notary. The civil-law notary is impartial. More about his role you can find at http://www.knb.nl/english
What we take care of:
– We have agreements with civil-law notary firms in most regions concerning the service to our customers, communication in English and the fees charged by the civil-law notary.
– We have agreements with interpreters who are familiar with the methods used by the civil-law notary for the transfer of title of real estate
– We check the statement of completion of the notary on behalf of our clients.
– We will be present during the transfer of title procedure and, if necessary, when the (provisional) contract of sale is signed.
What the civil law notary takes care of:
• He draws up the contract of sale (this can also be done by the estate agent or another party).
• He draws up the deed of delivery for the home.
• He draws up the mortgage deed.
• He has the details filled in the public registers.
• He carries out a survey (to establish, for example, whether the vendor is entitled to sell, whether the home is subject to an attachment order, etc.).
• He attends to the settlement and transfer of funds.
The fees for notarial services were liberalised a number of years ago, and civil-law notaries these days compete on price and service. You will often be given a discount if you have the civil-law notary carry out several tasks at the same time (e.g. drawing up a cohabitation contract, a will, etc.)
• Confirmation of the tax department’s granting of the 30% ruling (if applicable).
A new country
You are going to live and work in The Netherlands for a while. A new environment, new people and new experiences. But also: a new language, which will not always be clear to you. And new laws, new rules and undoubtedly plenty of other surprises. We are well aware that we cannot assist in most of these new experiences. What we are able to offer you is a smooth transition when it comes to insurances.
Just like at home, you will need good insurance to protect you against financial risks. For example the risk that your valuable belongings get damaged in a fire or are stolen while you are travelling. Not to mention your personal liability. And what if you urgently need to travel back home because a close relative is seriously ill? Your insurances back home will most likely not cover your stay abroad.
Fortunately, there is a complete solution available, especially developed for people like you: the Expat Policy for Foreign Professionals in The Netherlands. It offers you precisely the security that you need, because you can compose your own policy – choosing from five different insurances (with a minimum of two). Of course all information is in clear English.
This unique insurance is not available anywhere else. It covers the costs if a close relative needs to travel to the Netherlands should you become seriously ill or have a bad accident. And vice versa. In both cases accommodation expenses are also covered.
- De Goudse assistance
De Goudse Assistance is available 24 hours a day, 7 days a week.
- Personal Liability
This insurance covers the costs if you or a member of your family accidentally causes damage to a third party and is held responsible.
- Household Contents
If your household contents get damaged or stolen, this insurance covers you adequately.
- Continuous Travel
Both your personal and business trips are covered throughout the year. Coverage includes theft, accidents, legal assistance and adventurous sports. Plus evacuation and repatriation. If you wish you can include cancellation cover, so that your travel expenses will be refunded if your trip is cancelled for an unexpected reason, such as illness.
- Personal accidents
If you or a member of your family is involved in an accident this can have unwanted consequences. Money cannot soften them, but it can prove to be useful. This insurance pays out a lump sum if the accident results in death or permanent disability.
- Personal Legal Assistance
Conflicts can always occur. Concerning a service or product you purchased, for example. Or with a neighbour or your employer in The Netherlands. Dutch legislation is sometimes complex, but this insurance offers you the certainty of legal assistance in many circumstances.
With our long experience in the expat market, we come highly recommmended. Intrigued? Go to the contact page and discover what other property owners and customers have to say about us and how we operate.