Buying a home in the Netherlands usually starts with one key question: How much can I borrow?
For expats and foreign buyers, the Dutch mortgage system can feel very different from what they are used to. Concepts such as permanent contracts, employer statements, property valuations and financing rules are not always clearly explained.
In this blog, we explain step by step how a mortgage works in the Netherlands, what banks look at, and what expats should pay special attention to.
What determines how much you can borrow?
In the Netherlands, the maximum mortgage amount is mainly based on:
- your gross annual income
- the type of employment contract you have
- existing financial obligations
- the market value of the property (valuation)
- current mortgage interest rates
Banks follow strict national lending rules. This means that not only your income matters, but also your overall financial situation.
Permanent contract vs temporary contract
Many expats believe that you must have a permanent contract to apply for a mortgage in the Netherlands. This is not always true.
With a permanent contract
If you have a permanent (open-ended) employment contract, applying for a mortgage is generally more straightforward. Banks see this as stable income.
With a temporary contract
It is often also possible to get a mortgage with a temporary contract.
What matters most:
- Your employer can provide an employer’s statement
- This statement can include an intention to extend your contract
- Or confirm that your performance is satisfactory and continuation is expected
For many banks, a positive employer’s statement is sufficient to assess a mortgage application.
This means that a permanent contract is not always required to buy a home in the Netherlands.
What if your income is not Dutch?
For expats or foreign buyers with income from abroad, additional factors apply:
- Is your income paid in euros?
- Is the income stable and provable?
- In which country do you pay taxes?
- How long have you been employed?
Not all banks accept foreign income, but depending on the situation, there are certainly possibilities.
When do you need your own funds?
In principle, you can borrow up to 100% of the market value of the property in the Netherlands.
This means you usually need your own funds for:
- transfer tax (if applicable)
- notary fees
- valuation costs
- mortgage advice and arrangement fees
If the valuation comes in lower than the purchase price, the difference must also be paid with your own funds.
The role of the property valuation
Banks do not look only at the purchase price, but primarily at the valuation value.
If the valuer determines a lower value than the agreed purchase price:
- the bank will finance up to 100% of that lower value
- the difference must be covered with your own money
That is why understanding the market value early in the process is important.
