5 frequent questions by first time buyers
What does the process look like when I want to buy a house?
The first step is a good preparation. You should have a clear view on what are you looking for and if for example you want to be advised by a real estate agent. Get in touch with your mortgage advisor to determine what your maximum mortgage is so. On the Dutch website Funda you can find the most extensive list of available properties on the market. Next you can visit a property and check all the documents. If you want to proceed you can put down an offer and conditions such as a financial clause for a mortgage approval or whether or not you want to include a technical inspection. If the seller accepts your offer, a provisional purchase agreement will be drafted by their agent. Once this is signed by both parties and you have a valuation report we can submit your mortgage application. Upon approval of your mortgage application you need to wait till the agreed transfer date. The notary will prepare the legal documents, such as the mortgage and transfer deed. They will also oversee the financial transaction and make sure you get the keys.
How much money do I need to bring in myself?
In the Netherlands you can finance up to 100% of the property value with a mortgage. Any additional costs you need to pay for yourself. The main costs are for your agent, your mortgage advisor, your notary and valuation. Often you also have to pay transfer tax which is mostly 2%. If there is a difference between the purchase price and the valuation you also need to cover this difference. Mostly we see clients paying between 4 to 6% from their pocket, but it really depends on the circumstances.
Is it wise to take out a mortgage at the maximum of my loan capacity?
It can be tempting to take out a mortgage at the maximum of your capacity. But if you have a high mortgage it means your monthly interest and loan repayment will also be high. There are risks involved and you should always discuss this with your mortgage advisor.
Can I take out a mortgage if I have a student loan?
If you have a student loan you can often still get a mortgage. It does impact your maximum mortgage amount, but because of the low interest and weight factor in the calculation this is often manageable. We are happy to calculate this for you.
Do I meet the requirements for a NHG mortgage?
The purchase limit for NHG (translates National Mortgage Guarantee) is 355.000 euro in 2022 and will increase to 405.000 euro on January 1st 2023. With a NHG mortgage you get a better interest rate and have extra protection in case of certain situations. Besides this limit there are some other factors that determine if your qualify for NHG. For example:
- You need to pay your full mortgage back on a linear or annuity scheme (interest only is not an option)
- If the valuation points out much maintenance is needed you are required to also arrange a technical inspection
- To prove your income an employment statement is always required (other documents are not allowed)
- Bonuses/allowances are often not allowed in the calculation for your maximum mortgage
With NHG it is important that the financial benefit of the better interest rate outweighs the costs to obtain the NHG mortgage (0,6% of the mortgage amount).
Anything unclear? Send us a message and we will get back to you asap.
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