A mortgage application is all about trust. The bank wants to know if you can afford the monthly payments, now and in the future. For Dutch people, that’s a standard procedure. For expats who want to buy a home it’s a bit more complicated, but certainly not impossible.
Banks look at your income, your employment status and your residence status. Do you have a permanent contract with a Dutch employer? Then the application often goes smoothly. Do you have a temporary contract or are you self-employed? Then lenders ask for more documentation. Think of employment contracts, salary slips and sometimes an employer’s statement.
An expat from Germany who worked in The Hague for an international organization ran into this. He earned well, but his contract was through a foreign employment agency. Three banks turned him down before a mortgage advisor with experience in this segment found the right lender. The solution existed, but you need to know where to look.
Temporary contract or self-employed: there are more options than you think
Many expats think that a temporary contract means a mortgage is not possible. That’s not true. There are lenders willing to look beyond the type of contract. They look at your industry, your work history and the chances your contract will be renewed.
For self-employed expats, a different approach applies. Banks usually want to see three years of annual accounts or tax returns. Haven’t you got those yet because you recently became self-employed? Then a regular mortgage is difficult, but sometimes alternative structures are possible.
At SMASH Makelaars, we work with mortgage advisors who deal with these kinds of situations daily. We connect you with the right people, so you don’t have to figure it out yourself. Want to know what’s possible in your situation? Feel free to get in touch for an initial consultation.
How much can you borrow and what determines that?
The maximum mortgage in the Netherlands is calculated based on your income and the value of the property. In most cases, you can borrow a maximum of 100 percent of the market value. This means that the buyer’s costs, such as transfer tax and notary fees, must be paid out of your own pocket.
For expats, your residence status also plays a role. Do you have a temporary visa or a permit for a set period? Then that can affect the term of the mortgage or the willingness of certain banks to cooperate. Do you have a permanent residence permit or are you an EU citizen? Then the possibilities are usually broader.
A practical example: a Spanish couple living in Rotterdam had a combined gross annual income of 95,000 euros. Based on that income, they could borrow up to approximately 430,000 euros, depending on the lender and current interest rates. With an investment of 20,000 euros for additional costs, they could actively search in a realistic segment. Want to know what your borrowing capacity is? A mortgage advisor will give you a clear picture within an hour.
The role of a purchasing agent in your mortgage process
Applying for a mortgage and buying a home are two parallel processes you need to manage at the same time. That requires oversight. A purchasing agent not only helps you find and negotiate a home, but also keeps track of the timeline.
Because that’s how it works in practice: you find a home, you make an offer and if it’s accepted, you usually have three to six weeks to get the financing sorted. During those weeks, the mortgage application must be submitted, the appraisal must take place and all documents must be approved. If something goes wrong or is delayed, you can use a termination clause.
At SMASH Makelaars, we monitor that timeline for you. We act quickly, communicate clearly and make sure you don’t face any surprises. This is a major advantage, especially for expats who have less experience with Dutch procedures. You don’t have to do it alone.
Taxes and financial benefits you don’t want to miss
The Netherlands has a mortgage interest deduction. This means you can deduct a portion of the paid mortgage interest from your taxable income. For expats who fall under the 30 percent ruling, this works slightly differently. The 30 percent ruling is a tax benefit for foreign employees who are transferred to the Netherlands. It affects your net income and thus what you can borrow.
Additionally, you pay transfer tax when purchasing a home. For buyers under 35 years old buying a home for the first time, there is an exemption, provided the home value is below a certain limit. This saves thousands of euros in costs. Many expats don’t know about this and pay more than necessary.
Get good information about these rules before you make an offer. A purchasing agent and a mortgage advisor together give you the complete picture. At SMASH Makelaars, we make sure you don’t miss any benefits.
Practical steps to get started today
The mortgage process doesn’t start when you sign a purchase contract. It starts with preparation. Get these steps in order before you actively start looking for a home.
Gather your financial documents. Think of recent salary slips, your employment contract, a copy of your residence permit or passport, and your annual statement. The sooner you have this in order, the sooner a lender can make a decision.
Find a mortgage advisor with experience with expats. Not every advisor is familiar with the specific rules and exceptions for foreign buyers. A good advisor will save you time, money and frustration. Also schedule an appointment with a purchasing agent before you start actively bidding. This way you know exactly what price range you can realistically search in and you’ll be stronger in the market. Feel free to call us, we’ll help you get started.
Frequently asked questions about the Dutch mortgage process and financing options for expats
Can I get a mortgage if I don’t speak Dutch?
Yes, you can. The mortgage process is officially conducted in Dutch, but many lenders and advisors also work in English. Notarial deeds and official documents are in Dutch. A purchasing agent or advisor can help you understand everything before you sign anything.
What’s the difference between a bank guarantee and a deposit?
When signing the purchase contract, you usually have to deposit ten percent of the purchase price as security. This can be done via a deposit, where you transfer the money yourself to the notary, or via a bank guarantee, where the bank acts as guarantor. A bank guarantee costs money, but is convenient if you don’t have your own capital readily available.
How long does it typically take to arrange a mortgage as an expat?
Count on four to eight weeks from the moment you have submitted all documents. If you need additional documentation, such as translated documents or specific statements from foreign employers, it may take a bit longer. Good preparation and an experienced advisor significantly shorten this process.
The Dutch mortgage process is complex, but it’s doable. Especially if you have the right people around you who know the way. SMASH Makelaars helps expats daily with buying a home in the The Hague region. From the first conversation to the key handover. Get in touch and discover what we can do for you.
