Use Your Savings or a Higher Mortgage in the Netherlands? A Smart Guide for Expats (2026)

When buying a property in the Netherlands, many expats ask the same question: Should I use my savings for the purchase, or finance more through my mortgage? The answer depends on mortgage interest rates, mortgage interest tax deduction (“hypotheekrenteaftrek”), Box 3 wealth tax, and whether you benefit from the 30% ruling.

 

In this guide, we explain how it works, clearly and practically, so you can make a confident decision.

The Core Decision: Lower Mortgage or Keep Liquidity?

 

You have two main options. Either use your savings to reduce your mortgage or keep your savings and borrow more. Both strategies can be financially smart. The right choice depends on taxes, interest rates and your long-term plans.

 

Mortgage Interest Rates & Tax Rebate in the Netherlands

 

Your mortgage interest rate determines how expensive borrowing is.

 

• Higher rates → reducing your mortgage saves more interest.
• Lower rates → borrowing more may be relatively affordable.

 

But the interest rate alone does not tell the full story. You must look at the net cost after tax. If you choose an annuity or linear mortgage and repay it within 30 years, the mortgage interest is generally tax deductible in Box 1. This means the interest lowers your taxable income and your effective mortgage cost becomes lower. Example: If your mortgage rate is 4.0% and you receive tax relief, your net interest cost may effectively be closer to 2.7%, depending on your income tax bracket. This makes borrowing more attractive than it first appears.

 

Box 3 Tax: How Savings and Investments Are Taxed

 

In the Netherlands, savings and investments are taxed in Box 3 once they exceed the annual tax-free threshold. In 2026 this threshold is € 59,357 per person or if you have a fiscal partner the threshold is € 118,714. The system assumes a return and taxes that, even if your actual return is lower. This means that large savings balances can lead to annual wealth tax. And that reducing your savings by investing in your home may lower Box 3 tax.

 

For buyers without special tax status, this is an important consideration. But what if you have the 30% ruling? For expats benefiting from the 30% ruling who opt for partial non-resident taxpayer status, assets in Box 3 are generally not taxed during the period of the ruling. This changes the calculation significantly. If your savings and investments are not taxed, then there is less tax advantage in reducing your savings. Keeping investments may be more attractive. However, the 30% ruling is temporary. Once it ends, Box 3 taxation applies again. Long-term planning is essential.

 

Liquidity: The Overlooked Factor

 

Your home is not easily accessible capital. Savings are. Using all your savings to reduce your mortgage may leave you financially tight. Renovations, career changes or family plans require flexibility. Many expats prefer a balanced strategy:

 

• Keep an emergency fund.
• Use part of their savings.
• Optimize tax efficiency.
• Maintain long-term flexibility.

 

Financial comfort matters just as much as interest savings.

 

A Practical Example for Expats with 30% Ruling

 

Imagine the following is your case:

 

• € 70,000 in savings
• 4.0% mortgage interest rate
• Mortgage interest tax deduction applicable
• 30% ruling active for another 3 years
• 6.0% savings average investment portfolio return

 

Because your Box 3 assets are not taxed, keeping savings invested may make financial sense especially if you expect moderate investment returns. If your mortgage rate is 4.0% and you receive tax relief, your net interest cost may effectively be closer to 2.7%. If on the other hand you have your savings in an investment portfolio with an average return of 6.0% and you don’t have to pay any taxes on that in box 3 due to your ruling, then it makes more sense to keep you funds in your investments. But once your 30% ruling expires, the advantage to keep your funds in the investment portfolio in box 3 becomes smaller due to asset taxes, making it wise to consider shifting (some) of your savings towards your mortgage.

 

So, What Makes Sense for You?

 

When deciding whether to use savings or increase your mortgage in the Netherlands, consider:

 

• Your mortgage interest rate
• Whether you qualify for mortgage interest tax deduction
• Whether you benefit from the 30% ruling
• Your Box 3 position
• Your need for flexibility
• Your long-term plans in the Netherlands

 

The smartest strategy is the one that fits your full financial picture.

 

How We Help You Decide

 

At Independent Expat Finance, we look at everything together: your mortgage options, tax situation, savings, and future plans in the Netherlands. We explain the numbers clearly. You choose with confidence.

 

If you are buying a property and want to know whether using savings or borrowing more makes sense, book a free consultation. We guide you step by step.

Book a free mortgage intake meeting

 

Our team of mortgage advisors is ready to assist you in finding the right mortgage. Contact us today for a no-obligation consult and discover the many options available to you.

Mortgage Interest Rates and the Dutch Housing Market in 2026

As we move through 2026, Dutch mortgage interest rates have stabilized after the declines seen in 2024 and 2025. Instead of large drops year-on-year, experts expect relatively flat rates with only modest changes.

Current Rate Environment (Early 2026)

 

• Short‑term / 1–5 year: ~3.1 % – 3.6 %
• 10‑year fixed: ~3.7 % – 4.2 %
• 20‑year fixed: ~4.0 % – 4.5 %
• 30‑year fixed: ~4.2 % – 4.7 %

 

These ranges reflect what most lenders, including ABN AMRO, ING, Rabobank, and Obvion, are offering for new mortgages in early 2026.

Why Rates Are Stabilizing

 

The European Central Bank (ECB) deposit rate is holding at 2 %, and is expected to remain steady throughout 2026. Eurozone inflation is hovering around 2 %, aligning with the ECB’s target and reducing pressure for further cuts. Longer-term mortgage pricing, tied to capital market yields like 10-year government bonds, has remained steady, keeping long-term rates largely unchanged.

Impact on the Housing Market

 

Property demand: With rates stable but not falling sharply, the market sees continued strong demand in popular locations, though buyers are more selective.

 

Price trends: Moderate growth in property values is expected — about 4–6% on average, lower than the 10% spike projected in 2025. Energy-efficient homes and properties in desirable neighbourhoods continue to attract the most competitive bids.

 

Bidding behaviour: While overbidding still occurs, it is less extreme than in 2025, often ranging from € 20,000 to € 70,000 above asking prices in high-demand areas.

 

Affordability considerations: Stable rates mean that monthly payments remain manageable, but rising property prices still challenge first-time buyers and single-income households. Dual-income families or buyers using NHG and energy-efficient mortgage benefits are in the strongest position.

Practical Advice for Buyers in 2026

 

Consider a combination of a 10‑year fixed with 3 year fixed mortgage for a balance of security and cost certainty. Also factor in energy efficiency, homes with labels A, B, or C may allow slightly higher borrowing capacity or access to lower interest rates.

 

Compare lenders carefully: small differences in rates and NHG eligibility can save thousands of euros over the lifespan of the mortgage.

 

Start planning early: while rates are stable, competition in popular areas means preparation, and clear budgeting are still crucial. We also offer a priority service with both ABN AMRO and ING for home buyers that are bidding without a financial clause.

 

Bottom line: 2026 offers a more predictable and stable mortgage environment than previous years, but housing prices and energy considerations remain key factors shaping affordability. Strategic planning and awareness of lender options are essential for navigating the market successfully.

Request a free mortgage intake meeting

 

Give us a call or fill in our contact form below if you are interested to discuss further with one of our mortgage advisors. 

NHG Threshold to Rise to €470,000 in 2026 – What That Means for Homebuyers in the Netherlands

Next year brings a significant change to the Dutch housing finance landscape: the maximum NHG (Nationale Mortgage Guarantee) threshold will increase from its current level of €450,000 to €470,000. For buyers who combine a home purchase with energy-saving upgrades, an even higher ceiling of €498,200 will apply.

In this post, we’ll explain the implications of this change for expats and other borrowers, and offer tips on how to position yourself now.

What Is NHG – A Quick Recap

 

The NHG (National Mortgage Guarantee) is a safety net provided by the Dutch government and guarantor institutions. It offers protection against losses in case of forced sale or inability to repay, under certain conditions. Because of that guarantee, lenders often grant slightly more favourable interest rates to NHG-backed mortgages.

 

However, NHG is only available up to a certain property value — i.e. there is a “ceiling” or “threshold” for eligible homes. That ceiling is now increasing as of January 1st 2026. 

 

Why the Increase?

 

Rising home values, inflation and higher expectations for sustainable (energy-efficient) upgrades have pushed the existing NHG ceiling to become outdated. By raising it to €470,000 — and up to €498,200 when including energy efficiency investments — the authorities aim to ensure that more homebuyers can still access the benefits of NHG. It’s a response to ongoing price pressures in the Dutch housing market, which have made many homes out of reach under the old NHG limit.

What Does This Change Mean for You?

 

If you are planning to buy a home in the Netherlands (or refinance), here’s what to watch out for — especially as an expat.

What Expats Should Pay Particular Attention To

 

Timing:

 

• If your mortgage application straddles the changeover, you may be able to benefit by delaying formal steps until the new thresholds come into force. For example, if you buy in December 2025 and have a financial clause ending in January 2026, then we can apply in December with the new NHG limit and the mortgage provider will give the offer on the first business day in January.

 

Limit based on value:

 

• Be aware, the NHG limit is based on the value rather then the purchase price. So if you buy for €480,000 but get a valuation of €470,000, then you qualify for a NHG mortgage.

 

Energy efficiency measures:

 

• As NHG incentivizes energy efficiency, combining your purchase with renovations (e.g. insulation, solar panels, heat pumps) can stretch your eligibility. The higher ceiling for “green” borrowers underscores this.

 

Market competitiveness:

 

• As more buyers leverage the higher NHG limit, competition in neighbourhoods with mid-to-upper price ranges could intensify. Be ready to act decisively, but also prudently. This could push prices for certain properties up to above the new limit.

 

Summary & Strategic Next Steps

 

The rise of the NHG threshold to €470,000 (and up to €498,200 with energy improvements) is a meaningful shift. It opens doors for more homebuyers and encourages sustainability in housing. For expats navigating the Dutch mortgage landscape, it offers both opportunity and complexity.

 

If you’re planning a home purchase or refinancing, here are your action steps:

 

1. Check your target property’s price — is it within the new limits?
2. Evaluate energy improvement options — adding insulation or solar now could enhance your NHG eligibility.
3. Speak with a mortgage adviser about how the timing of your application might influence your eligibility.

 

Stay updated. Regulations and norms often come with further clarifications or adjustments closer to implementation.

Book a free mortgage intake meeting

 

For personalized advice and to explore the best mortgage options available, contact Independent Expat Finance today.

Maximize Your Tax Refund: Essential Deductions for Dutch Homeowners

As the Dutch tax season is underway, homeowners have valuable opportunities to reduce their taxable income through specific deductions. Understanding and applying these can lead to significant tax refunds.​

Key Tax Deductions for Homeowners

 

1. Mortgage Interest Deduction: Homeowners in the Netherlands can deduct the interest paid on their mortgage from their taxable income, provided the loan is used for purchasing or improving their primary residence.​ A requirement is that the loan is paid off in a maximum period of 30 years on either an annuity or linear repayment scheme.

 

2. One-Off Tax-Deductible Mortgage Costs: When purchasing a property, several one-time expenses are tax-deductible in the first year, including:

 

• Mortgage advisory and brokerage fees
• Notary fees related to the mortgage deed
• Valuation costs for the property
• Costs for obtaining National Mortgage Guarantee (NHG) if applicable
• Mortgage deed registration fees

 

These costs can be substantial and claiming them can result in a significant tax refund if the first year when you own the property.

 

3. Provisional Tax Rebate: Instead of waiting for the annual tax return at the end of the year, homeowners can apply for a provisional tax rebate “voorlopige teruggaaf” to receive anticipated deductions monthly. This is particularly beneficial for first-time buyers who have made significant one-off costs or in times like now when the interest rates are considered a bit higher so the refund is larger.

 

Tips for Accurate Tax Filing

 

While the Dutch tax authority provides pre-filled tax returns, it’s crucial to verify and if necessary, correct the information, especially concerning mortgage details and deductible one off mortgage costs.

​

In your first year owning a property you can file a provisional rebate and claim the estimated interest you will be paying that year as well as the one off mortgage costs. As mentioned earlier it can be paid out to you on a monthly basis. Do be aware that clients who bought a property somewhere more towards the middle of the year, that in the year after the first you will also need to manually file a provision tax rebate with the estimated interest paid in the second year, which is a full year. The Dutch tax authority does not automatically consider this, so if you forget to manually change your provisional tax rebate then you will suddenly get a whole lot less.

 

If you bought a property together with your partner you will automatically become fiscal partners. This also means you can allocate the interest tax rebate to one person or the other or combination of it. This is the final section of applying for the tax rebate and often allocating it to the partner earning less leads to a higher tax rebate, unless that partner is hardly paying any taxes to begin with. 

 

Consult a Professional Tax Advisor: Tax regulations can be complex. Getting advice from a tax advisor can ensure all eligible deductions are claimed.​ Half of clients use a tax advisor.

 

At Independent Expat Finance, we specialize in assisting expats with the Dutch mortgage and tax systems. Our experts can guide you through the process of claiming all relevant deductions but we do not file your actual taxes, this is something you will need to do yourself or via a tax advisor.

 

Contact us today to ensure you’re maximizing your tax refund and making the most of your homeowner benefits in the Netherlands.

Book a free mortgage intake meeting

 

For personalized advice and to explore the best mortgage options available, contact Independent Expat Finance today.

ING Introduces New Mortgage Interest Rate Structure Based on Energy Label

Starting April 30th 2025, ING implemented a new, more granular approach to mortgage pricing—offering different interest rates based on a property’s energy label. This change marks a significant shift from their previous model, which only rewarded homeowners with a discount for improving their property to energy label A or higher. The new system offers varying interest rates across all energy labels, creating both opportunities and incentives for homeowners to improve the energy performance of their property.

What’s Changing for ING Mortgage Clients

 

• Tiered Interest Rates by Energy Label:

 

From April 30th, clients will receive a specific interest rate depending on the energy label of their home, ranging from G (least efficient) to A++++ (most efficient). With a D label you get a discount of 0,03%, with a C label 0,06%, with B label 0,09%, with A label 0,12% and A+ or better even 0,15%.

 

This rewards buyers of already efficient homes and further encourages sustainability-driven renovations for less efficient properties.

 

• No Need to Wait for Fixed-Rate Renewal:

 

Homeowners who improve their property’s energy label can request a new, lower interest rate during their fixed-rate term, rather than having to wait for the next term to begin.

 

• Automatic Loan-to-Value (LTV) Category Adjustments:

 

In a major customer-friendly update, ING will also begin automatically adjusting the LTV risk category when the mortgage balance drops into a lower tier based on the home’s current market value. This means borrowers no longer need to request a review to benefit from a better risk profile—potentially unlocking a lower interest rate sooner.

 

Why This Matters for Expats

 

These updates make ING’s mortgage offering more dynamic, fair, and sustainability-oriented. Whether you’re buying a new home or looking to refinance, these changes could have a meaningful impact on the total cost of your mortgage.

 

Independent Expat Finance: Fast-Track ING Mortgage Applications

 

As an official ING priority partner, Independent Expat Finance provides a priority service—any mortgage application submitted through us is reviewed within 24 hours, compared to the standard processing timeline. This ensures faster approvals and timely access to favourable new rates.

 

Our Advice

 

If you’re considering buying a home or improving the energy efficiency of your current property, now is an excellent time to act. With ING’s new tiered pricing and auto-adjusting LTV categories, there are more ways than ever to save on your mortgage costs.

 

Get in touch with us today to explore how these changes could benefit you and to receive expert, expat-focused mortgage advice.

​

Book a free mortgage intake meeting

 

For personalized advice and to explore the best mortgage options available, contact Independent Expat Finance today.

Global Tariffs and Their Influence on Dutch Mortgage Interest Rates

In the past year, Dutch mortgage interest rates have experienced a downward trend, particularly for shorter fixed-term mortgages. This decline is largely attributed to the European Central Bank’s (ECB) series of rate cuts aimed at stimulating economic growth amid global dropping and inflationary pressures.​

ECB’s Monetary Policy Amid Global Tariffs

 

The ECB has been proactive in adjusting its monetary policy in response to the economic uncertainties brought about by global tariffs, especially those imposed by the United States. Since June 2024, the ECB has reduced its key deposit rate six times, bringing it down to 2.50%. A further cut to 2.25% is anticipated in the upcoming policy meeting on April 17, 2025. ​

These rate cuts are designed to counteract the negative impact of tariffs on the Eurozone economy, which include reduced business sentiment and potential declines in growth. By lowering interest rates, the ECB aims to make borrowing more affordable, thereby encouraging investment and consumption.​

 

Impact on Dutch Mortgage Rates

 

The ECB’s monetary easing has had a direct effect on mortgage interest rates in the Netherlands. As capital market rates decline, Dutch mortgage providers have adjusted their offerings accordingly. For instance, the average interest rate for a 10-year fixed mortgage with National Mortgage Guarantee (NHG) protection has decreased with 0,5%  over the past year. ​

Shorter fixed-term mortgages have seen more pronounced reductions, with rates for 1 to 5-year fixed terms also experiencing notable declines of around 1%. This trend is particularly beneficial for first-time buyers that are buying well within their budget and those looking to refinance, as lower interest rates translate to reduced monthly payments and increased borrowing capacity.​

 

Looking Ahead

 

While the current trajectory suggests a continued decline in mortgage interest rates, it’s important to consider potential variables. The ECB’s future policy decisions will depend on evolving economic indicators, including inflation rates and the broader impact of global trade policies.​ We expect that in the coming 6 months the 10 year interest fixed term will drop another 0,25% and the 1 to 5-year fixed term to drop with another 0,60%. 

For prospective homeowners and investors, this period presents an opportune moment to explore mortgage options. Independent Expat Finance remains committed to providing expert guidance tailored to the unique needs of expatriates navigating the Dutch housing market.​

Book a free mortgage intake meeting

 

For personalized advice and to explore the best mortgage options available, contact Independent Expat Finance today.

National Mortgage Guarantee (NHG) limit increases to € 450,000 and participation becomes cheaper

The Dutch National Mortgage Guarantee (Nationale Hypotheek Garantie, or NHG) is set to undergo changes in 2025, as the maximum mortgage limit will increase to € 450,000. Additionally the cost of enrolling in the NHG program will be substantially reduced from 0,6% of the mortgage amount to 0,4%. This will make it up to €1,000 cheaper for homebuyers to participate in the scheme.

Higher NHG limit for mortgages

 

NHG is a financial safety net designed to protect homeowners who face difficulties in paying their mortgages due to unforeseen circumstances, such as passing away of a partner or divorce. At the moment NHG covers mortgages up to € 435,000. However, from 2025, the NHG limit will be raised to € 450,000. This increase reflects the rising house prices across the Netherlands, providing more homeowners access to the program.

 

Moreover, if homeowners take energy-saving measures such as installing insulation, solar panels or HR++ windows, they will be allowed to borrow even more. In these cases, NHG limit will be raised to € 477,000, encouraging sustainable home improvements.

 

NHG as a safety net for homeowners

 

The primary purpose of the NHG is to protect homeowners from being burdened with residual debt if they can no longer meet their mortgage payments. If homeowners fall into financial distress, a mortgage advisor can possibly provide more assistance to work out an arrangement that allows the homeowner to remain in their home.

 

NHG also provides an advantage by reducing the interest rate homeowners pay to the bank. This is because the Dutch government guarantees the NHG, which lowers the risk for banks, translating into lower interest rates for borrowers. Often the interest rate is with NHG is 0,5% lower vs the rate of a regular mortgage when financing 100% on the value of the property.

 

Reduced participation costs

 

One of the key changes coming in 2025 is the reduction in the fee homeowners must pay to participate in the NHG scheme, known as the guarantee fee or “borgtochtprovisie.” This fee will be reduced from 0.6% to 0.4% of the mortgage amount. For someone taking out a mortgage at the new maximum limit of € 450,000, this reduction translates into savings of approximately € 1,000.

 

NHG’s widespread usage and growing fund

 

Around 40% of all homeowners in the Netherlands have a mortgage secured with an NHG guarantee. Despite the growing popularity of the NHG program, it is notable that the increase in the NHG limit does not fully keep pace with the rapid rise in housing prices. While the NHG limit is set to rise by about 3.5%, house prices in 2024 have risen by approximately 12%.

 

The reason for this discrepancy is that the NHG limit is calculated based on house prices from the past 27 months, which are lower than current market values. As a result, the NHG cap doesn’t fully align with today’s housing costs, potentially leaving some homeowners outside the program’s coverage range.

 

NHG’s expanding role

 

The rising house prices have also resulted in a growing reserve fund managed by NHG. This fund, which now stands at € 1.7 billion, is set aside to assist homeowners in financial distress. In 2023, only 30 homeowners who encountered mortgage problems required help from this fund. As the reserve continues to grow, NHG is exploring new ways to use the money to address broader housing challenges.

 

Conclusion

 

The changes to the National Mortgage Guarantee in 2025 aim to make homeownership more accessible and affordable for Dutch buyers, especially given the rapid increase in house prices. The higher mortgage limit, combined with lower participation costs, provides a stronger financial safety net for homeowners. As of the end of December 2024 home buyers can make use of the new NHG limit and lower fee. If you want more information reach out to us to schedule a call with one of our mortgage advisors.

Request a free intake meeting

 

If you would like to discuss the current housing market and mortgage landscape, you can always reach out to us or to Nick from Your Dutch Home for an online intake session. These sessions are always free of charge.

Housing prices in the Netherlands: highest increase in two years

Housing prices in the Netherlands have seen another significant increase over the past month. Buyers paid, on average, 11.4% more for a home compared to the same period last year, marking the largest price increase in two years. This steep rise is especially evident in the province of Utrecht.

Average Home Prices in the Netherlands

 

According to recent data from Statistics Netherlands (CBS) and the Land Registry (Kadaster), the average price paid for an existing home last month was €466,890. These figures focus solely on existing homes, with newly built properties being excluded from the analysis.

 

For years, house prices in the Netherlands have been on an upward trajectory, driven by high demand and a limited supply of available homes. The only exception was the period between mid-2022 and mid-2023, when price increases temporarily slowed. However, after this brief pause, the prices started climbing again, with current prices now standing nearly 7% higher than the previous peak in July 2022.

 

Regional Variations: Utrecht Leads the Way

 

The rising trend in housing prices has been observed across nearly all regions in the Netherlands, with the exception of Zeeland, where prices increased by less than 10% over the last quarter. Nevertheless, even in Zeeland, homebuyers still paid 6.9% more compared to the same period the previous year.

 

The sharpest rise was seen in the province of Utrecht, where prices jumped by 14.4%. This significant increase is partly due to the housing market in the city of Utrecht, where prices surged by a staggering 18.4% over the last quarter compared to the same period last year. This makes Utrecht stand out significantly, surpassing other major cities like Amsterdam, where prices rose by 10.1%, and Rotterdam, which saw an 8.9% increase.

 

More Homes Changing Hands Despite High Prices

 

Despite the sharp rise in housing costs, more people have managed to buy homes. In every Dutch province, more homes were sold last quarter compared to a year earlier. In total, 54,147 homes were sold across the country, representing a 15.3% increase in the number of transactions compared to the same period in the previous year. Apartments, in particular, have been selling at a much higher rate.

 

What’s Driving the Price Increases?

 

The rapid increase in house prices can largely be attributed to the high demand for homes combined with a shortage of supply. With fewer homes available and a strong demand, competition among buyers has driven up prices. The lack of sufficient new housing projects also plays a key role, as construction has not been able to keep pace with the growing population and demand for homes, especially in urban areas.

 

Outlook for the Dutch Housing Market

 

Looking ahead, it’s unclear whether housing prices will continue their rapid ascent, but the current trend suggests that the market is still highly competitive. The affordability of homes, especially for first-time buyers, is becoming increasingly challenging, even as more transactions are taking place. As long as the imbalance between supply and demand remains, housing prices are likely to stay elevated, particularly in high-demand areas like Utrecht and Amsterdam.

Request a free intake meeting

 

If you would like to discuss the current housing market and mortgage landscape, you can always reach out to us or to Nick from Your Dutch Home for an online intake session. These sessions are always free of charge.

Taking low mortgage rates with you when moving

House prices are on the rise again. So-called “second time buyers” who sell their old homes can often benefit from the increased value of their old property when purchasing a new house.  However, it’s important to consider what happens with the old mortgage, especially regarding the mortgage interest rate.  

Homeowners who, for example, want to take an old mortgage with a relatively low interest rate to a new home need to pay extra attention. This is likely to become even more important in the coming years due to a shift in the interest rate market that occurred two years ago.

 

Between 2016 and the end of 2021, mortgage rates were relatively low. At the lowest point, you could even lock in long-term mortgage rates at around 1.5%. Since 2022, however, mortgage rates have risen sharply, and they have now been hovering around levels of about 4.5% for some  time and in the last few weeks have dropped to below 4.0%.  

 

1) Timing of Selling the Old and Buying the New Home  

 

If you buy a new home before selling your old one, you need to check with the lender whether you can carry over the old mortgage rate. It is important to notify them in time. With some lenders, you may lose the option to transfer the old rate if you notify them too late.  

 

On the other hand, you should also be cautious if you sell your old home first, pay off the associated mortgage, and then buy a new home. It’s also important to know whether the lender enforces a certain time period between paying off the old mortgage and finalizing the mortgage for the new home at the notary. 

 

2) From an NHG Mortgage to a Non-NHG Mortgage 

 

It’s possible that you initially took out a mortgage with NHG (National Mortgage Guarantee), which under certain conditions covers the repayment of any residual debt if homeowners face financial difficulties and can no longer afford the mortgage. NHG mortgages typically come with a slightly lower interest rate compared to mortgages without NHG insurance. 

 

But what if you want to take out a mortgage for your new home without NHG coverage? In this case, there’s usually an interest rate surcharge compared to the NHG mortgage, and you’ll need to check the terms regarding carrying over the mortgage interest rate when moving.  

 

3) What About the Affordability Test Interest Rate? 

 

One factor that can affect old mortgages when moving is the remaining fixed-interest period. If this period is less than ten years, lenders use a relatively high “affordability test interest rate” of at least 5% for determining the maximum mortgage amount. This could reduce your total borrowing capacity. 

 

In such cases, taking out a new mortgage with a longer fixed-interest period based on current rates may be more practical, especially considering the maximum mortgage amount.  

 

4) Divorce: Splitting a Low Mortgage Interest Rate is Usually Not Possible  

 

We also would like to point out that in the event of a divorce, it’s usually not possible to split the mortgage and allow both partners to keep the low mortgage interest rate. At many lenders, only one of the two partners is allowed to retain the low rate, and the other must give permission for  this.  

 

5) Switching to Another Lender  

 

Carrying over a low mortgage interest rate automatically means staying with the same lender when moving. However, if you have a relatively short remaining fixed-interest period and your current lender’s rates are less attractive than those of the competition, it might be worth considering switching to another lender. 

 

Overall, if you have a low interest rate on your current home it is always worthwhile to discuss your situation and possibilities with one of our mortgage advisors. 

Request a free intake meeting

 

If you would like to discuss the current housing market and mortgage landscape, you can always reach out to us or to Nick from Your Dutch Home for an online intake session. These sessions are always free of charge.

Purchasing a house in The Netherlands: how we can help with placing a bid without a financial clause

With the housing market in The Netherlands overheating again, many client are asking if they can place an offer without a financial clause for a pending mortgage approval. In this tight market this can make the difference whether or not you are successful with a bid. There is nothing more annoying then having the best offer but another competitor takes the price with a lower offer simply because they did not have any conditions on it. Well, we have some good news for you. With our special priority services clients can place an offer without financial conditions. Let us explain how it works.

How does a financial clause work?

 

When your bid on a property is accepted, the seller’s agent or the notary will draft a purchase agreement. Once you sign this, you legally always have three days in which you can still back out or change your mind without a penalty. After that the penalty could be 10% of the purchase amount.

 

As the mortgage is normally not approved in three days, a mortgage advisor or agent will recommend you to put in a condition on your offer that you require three or four weeks to get your mortgage approved. During this period if you mortgage gets declined, you can back out without a penalty. So the financial clause is there to protect the buyer, but it leads to uncertainty for a longer period of time for the seller.

 

If you’re not sure if you can get a mortgage approved for the purchase amount, bidding without a financing condition is quite risky. However, in this market, it is a popular option at the moment. It makes your bid much more attractive: the seller is almost certain that their house will be sold in just three days. It’s therefore common for sellers to prefer the offer without conditions, not necessarily even the highest bid!

 

Why can you remove the financial clause if you work with Independent Expat Finance?

 

Our company has access to almost all mortgage providers in The Netherlands. But with two of the biggest providers, ABN AMRO Bank and ING Bank, we have a priority service. This means that once we submit a complete mortgage application to either, we have an agreement with them that they will review the application on the next business day at latest. Good preparation is important but if we have all the documents necessary for the application ahead of signing the purchase agreement, we could get an approval a day later. Or at the worst, we have feedback of the mortgage provider if anything needs to be adjusted or extra documents are required. All of this within the three day cool off period. If it doesn’t work out, you can still withdraw from the purchase free of charge.

 

How can you make use of our priority service?

 

For starts, get in contact with via our website or phone number to schedule an intake session. During our intake session, it is one of the subjects we will discuss as there are some conditions for making use of this service.

 

For the priority service the secret lies in a good preparation on both the client side as well as on our end. Having all your income documents (also possible for entrepreneurs or self employed) ready and checked by us ahead of signing the purchase agreement is first of all necessary. Secondly, having a valuation report ready and or demonstrating you have sufficient savings to pay for any difference in the valuation vs purchase price is important. Then once we submit the application, it is our job to make sure the mortgage providers starts reviewing your application within the service level agreement.

Request a free intake meeting

 

If you would like to discuss the current housing market and mortgage landscape, you can always reach out to us or to Nick from Your Dutch Home for an online intake session. These sessions are always free of charge.