Getting a Dutch mortgage advice can be a convoluted and confusing thing. There are so many different offers, rates and options. Add to that the fact that everyone’s individual situation is different, and it often leaves us expats and internationals mystified. Of course, we all want to get the best mortgage financing deal to suit our project. Add into the mix the housing market that seems to be in flux and the wider economic outlook of inflation and fluctuating interest rates. Read on to learn more about Dutch mortgage advice and see our Q+A with a mortgage expert.
Endless Choices
It can all be very overwhelming. A lot of people will simply go to their bank as a first port of call when looking at getting a mortgage. The banks love it when this happens as they have a captive audience and some financial history of the people that are asking for finance to fund their new home. That is often not always the best choice for getting the best deal for YOU. In order to look more closely at the mortgage option, we asked an independent mortgage advisor, Arjen from Team Concepts to review all the different options in our Dutch Mortgages Q+A.
For years now, Arjen has been helping expats in The Netherlands to cut through the mire and to get the best mortgage deals for their home-buying project. He is calm, clear and analytical. He hand-holds his expat clients to get them the best mortgage deals for their needs. So let’s find out more from the expert himself. Over to you Arjen.
Q+A About Dutch Mortgage Advice
There is a myriad of options for expats looking to buy a home in The Netherlands. Please tell us how you have made a difference to your clients in their mortgage choices.
First I want to mention I am an independent mortgage adviser, enjoying guiding my clients individually in the best way along all the options. By making comparisons between all those different mortgage providers and firstly listening to one’s personal background, personal financial wishes and needs regarding mortgages and then bringing together to the best solution. Based on competitive interest rates, but also best conditions and terms.
The housing market and interest rates are in a state of flux at the moment. What should prospective buyers be thinking about regarding getting long-term mortgage deals?
At this moment, lots of prospective buyers are mostly choosing long time fixated interest rates, like a 10-year fix, but personally, I think it really depends on the personal situation. It is always something to discuss and to find out when having those personal conversations.
Although short-term interest fixes may not be that interesting and popular at this moment because of an inverted interest structure, there are still good options (depending on the mortgage provider) for those prospective buyers. So it is also always important to put together the whole picture at that moment.
What happens to a mortgage should people decide to move back to their home country and rent out their property in the future?
Speaking about renting a property out, regulations changed a lot last year in April. It impacted for sure a lot the whole Amsterdam housing market. More and more strict rules to help and protect buyers, so it is even more important to have a clear view of all the options at the moment when you want to make that kind of decision. For houses or apartments bought before April 2022- depending on the situation and details – there still will be options to refinance a residential mortgage to a buy-to-let/ investment mortgage. It is always important to find out and discuss with a specialist to find the possible options and to find out if it will be an interesting (financial) option for you.
What are the advantages of using your services rather than going directly to the bank?
Banks are mostly just offering their own products and are not able to make independent comparisons between all those different providers (banks, insurance companies, pension funds). My goal will always be to go for the best and most interesting option for my client and to guide my client in that whole process.
What important mortgage elements should expats be paying particular attention to when looking at mortgages?
Elements like low-interest rates are clear in every conversation, but also elements like flexible conditions. Also, making extra repayments to mortgage providers without costs will be important. Validity of the proposal. Fast and smooth processes at the providers. All elements are important for expats.
Please give us more insight into the tax advantages of getting a mortgage.
When discussing the topic of tax deduction, I always discuss my client’s tax-deductible interest rates (differences between the gross and net payment) when financing a residential property. The initial tax-deductible costs for the purchase, including costs for mortgage adviser, mortgage deeds at the notary and costs valuation report. Also, discussing expats applicable 30% ruling.
What are the trends you are seeing in the mortgage market?
As I said, I see a lot of prospective buyers choosing a reputable mortgage provider often choosing for longer-term deals and also often adding a sustainable renovation depot to improve the sustainable quality of their new home and improve the energy labels. Of course, it is important to reduce energy costs and to work towards a more sustainable world.
What about self-employed people? How does that work when looking for a mortgage in NL?
Self-employed expats will have options to get a mortgage here in the Netherlands. Same as for Dutch people mostly it will be important to be registered with your company for more than 12 months at the Chamber of Commerce. The longer your stay in the country and the more years of income and results to prove to a provider mostly the better the options (3 years+). Based on items like balance and profit and loss accounts. For self-employed people, financial options can be found.
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Thank you, Arjen for all this great information about Dutch mortgage advice. We are sure this will be very useful to all the local people looking at getting the right financing package for their property purchase.
For more information, feel free to contact Arjen at Team Concepts.
Tel: 06 43 03 02 71
Email: arjen@teamconcepts.nl
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