Buying Your First Home in the Netherlands as an Expat? Here’s What You Need to Know
Buying your first home in the Netherlands is exciting, but it can also feel overwhelming. New rules, new terminology and a different mortgage system than you may be used to.
The good news? You don’t have to figure it out alone.
At Independent Expat Finance, we help first-time expat buyers navigate the Dutch mortgage market with clarity and confidence. Below, we explain the key things you need to know before buying your first home in the Netherlands.
Can You Get a Mortgage as an Expat?
Most expats living and working in the Netherlands can qualify for a mortgage. Lenders look primarily at your legal residence status, your employment situation and your income stability. A permanent contract makes things straightforward, but even with a temporary contract or if you’re an entrepreneur it is often possible to obtain a mortgage.
Your credit history in the Netherlands and any existing financial obligations, such as student loans or personal loans are also taken into account. During an intake session, we quickly assess whether you qualify and what lenders would be suitable for your specific situation.
How Much Can You Borrow?
In the Netherlands, mortgage providers use a loan-to-income calculation to determine your maximum borrowing capacity. This calculation is based on your gross annual income, the current mortgage interest rate and the type of mortgage you choose. It also considers whether you qualify for mortgage interest tax deduction, the energy label of the property and any outstanding debts.
Understanding your borrowing capacity early is crucial. It not only determines your price range, but also strengthens your position when making an offer. During our first meeting, we calculate your maximum mortgage amount, estimate your monthly payments and outline the total purchase costs, so you can start house hunting with clarity and confidence.
What Additional Costs Should You Expect?
When buying a property in the Netherlands, the purchase price is not the only cost to consider. Buyers also pay additional expenses, commonly referred to as “kosten koper” in Dutch. These typically include property transfer tax, notary fees, real estate agent fees, valuation costs and mortgage advisory fees.
If you are under 35 years old and purchasing a property below the annually determined threshold (currently € 555,000 in 2026), you may qualify for the first-time buyer transfer tax exemption. This means you pay 0% transfer tax instead of 2%, which can save you a significant amount.
It is also possible to include renovation costs or energy-saving improvements in your mortgage. This can be especially helpful if you are buying a property that requires upgrades or if you want to improve the energy efficiency of your new home.
Fixed or Variable Interest Rate?
In the Netherlands, you can choose between a fixed interest rate or a variable rate. A fixed rate provides stability and predictable monthly payments for a chosen period, which can range from one to thirty years. A variable rate changes monthly and may start lower, but it also carries more uncertainty.
Most first-time buyers prefer a fixed interest rate for peace of mind. It is possible to combine different fixed-rate periods within one mortgage. The right choice depends on your financial goals, risk tolerance and how long you expect to stay in the property.
Mortgage terms are often set at thirty years. This is important because mortgage interest is tax deductible for up to thirty years if you choose an annuity or linear repayment structure.
Which Mortgage Type Is Right for You?
There are three main mortgage types in the Netherlands: annuity, linear and interest-only.
With an annuity mortgage, you pay a fixed gross monthly amount that consists of both interest and repayment. Over time, the interest portion decreases and the repayment portion increases. A linear mortgage involves fixed repayments each month, meaning your monthly payments start higher but gradually decrease over time. Both types qualify for mortgage interest tax deduction, provided the loan is fully repaid within thirty years and the property is your primary residence.
An interest-only mortgage offers lower monthly payments because you do not automatically repay the loan. However, this type is generally not eligible for mortgage interest tax deduction for new mortgages and may not be suitable for first-time buyers.
We help you choose the structure that fits your income, future plans and comfort level.
What Is NHG and Should You Consider It?
NHG, or in Dutch “Nationale Hypotheek Garantie”, is a government-backed mortgage guarantee that provides additional security to both you and the lender. Because it reduces the lender’s risk, it often results in a lower mortgage interest rate. In some cases, it may also slightly increase your borrowing capacity.
There is a one-time fee of 0.4% of the mortgage amount to obtain NHG in 2026. For many first-time buyers, the lower interest rate outweighs this initial cost, making it a financially attractive option.
Preparing for Your First Mortgage Application
The Dutch housing market moves quickly, so preparation matters. Having your documents ready can significantly speed up the process. This typically includes your employer statement, recent salary slip, overview of savings and details of any outstanding loans. Your residence permit is also required if applicable.
Being well prepared strengthens your position in a competitive market and increases your chances of smooth mortgage approval.
Feeling overwhelmed? That is completely normal. Buying your first home in a new country comes with many questions. The mortgage system, the bidding process and the tax rules may all feel unfamiliar. That is exactly why independent advice makes a difference. We compare more than 35 mortgage lenders, understand expat-specific situations such as residence permits and foreign income, and guide you through the entire purchase process, from the first calculation to the final signing at the notary.
Book Your First Free Consult
Your first intake session is always free of charge with no strings attached. We assess your possibilities, explain the mortgage process clearly and answer all your questions. Buying your first home should feel exciting, not stressful. We help you move forward with clarity and confidence – and feel at home from day one.
Why Expats choose us?
What can Independent Expat Finance do for you?
Our independent mortgage advisors assess your situation and wishes in order to match this to the best mortgage provider and product. Our mortgage advisors are WFT certified and have different specialties such as buy-to-let mortgages, newly built homes or mortgages for entrepreneurs. We have a large network of notaries, real estate agents and appraisers to share with you. All our advisors speak English fluently and you can expect a personal and responsive approach. A first step is always an intake session with no obligations, an opportunity to get acquainted and hear what we can offer you. We look forward to meeting you.
You don’t have to
figure this out alone.
We’ll guide you step by step,
all the way to your new home.
