Here is our Dutch Mortgages Q+A – We see many questions online about mortgages in The Netherlands. So, we went to a mortgages expert who helps expats get financing for their dream homes. Many of us would love to own our own home in The Netherlands. For sure, it would have been ideal to have bought in 2013 when houses were much cheaper compared to now. Hindsight is a very exact science. Maybe that was too early and then you watched as prices increased over the years and hoped they would hit a peak. The latest figures show that prices are still rising and competition between buyers is driving prices ever higher. We recently saw double-digit growth in the price of an average Dutch home. How far can it go? Is it just supply and demand that is driving this price growth? Let’s find out!
How does this affect your ability to finance a purchase of a home? What differences are these continual price rises having on your borrowing? Are the lenders getting nervous that borrowers are still going to meet their ability to repay? These are all important elements. In order to get more insights, we asked Arjen, founder of Team Concepts. Arjen has a long history of independent mortgage advice and helping expats get the best mortgage deal to achieve their dream of homeownership. Thank you, Arjen for taking the time from your busy schedule to answer our questions. These insights will be really useful for all those looking to get on the housing ladder. Over to you for the Dutch Mortgages Q+A:
q1. Average house prices continue to sharply rise. As a mortgage advisor, how has this fact changed the advice you give to expats getting finance for their homes?
Always before I advise my expat clients for the next steps in the process, I will also start with them an indicative maximum calculation based on their financial possibilities. This is in order to know their options in the bidding process. The housing market is booming and prices are going up constantly. That is another reason I am even closer to my clients because you have to act really fast. At the moment there is not much time to react on house sales. It all happens very fast. In most cases, I advise using a skilled real estate agent as well. That can be extremely helpful in this market.
q2. Are lenders changing their offers or conditions? Have these price rises changed the notion of risk for the lender AND the borrower?
Until now, there have not been many changes in the offers and conditions from lenders. Also, interest rates remain extremely low. There are still a lot of financial options for Dutch and expat borrowers. As a specialist in mortgages for expats, I help to identify and get the best option and to be the guide in the whole process.
Regarding the notion of risk, buyers are because of this more complex housing market more and more willing to buy without any financial clause in the purchase. Although it is quite understandable, because of the extra risks, it is not my advice to do this in the majority of cases.
q3. How do you see the market in the coming months and years?
It will be in my opinion about the same as the last few years. Mainly because of the shortage of houses (supply and demand), the very high monthly costs for renting and the still very low interest rates. Maybe price rises will be not that extreme like the last 3 years, but rises will happen in Amsterdam and several other cities in the Netherlands.
q4. Many expats are independents and small business owners. How can they get mortgages and get on the property ladder?
For expats there are similar financial rules as for non-expats. When you have your own small business or when you are independent and you can show the results of your business and tax forms over the last 3 years you have the best options. Even when there is just one year of results to show, there will still be some options. It will be very important to have good guidance in the process, because the procedure is more complicated. Team Concepts has completed many cases like this.
q5. Please tell us about the different expats you help to get the best mortgage packages.
The expats I helped over the last few years are from all over the world. Many of them are from China, India, Australia and lots of other EU and non-EU countries.
When you just arrive or recently moved to the Netherlands, it takes a lot of time to find your way around. You will need time to adapt to the new country. It’s a whole new culture. The financial rules are different too. In my guidance, I offer the whole package from the moment you want to make the first steps. I give an introduction to the process and a calculation to find out the options. Right up to the moment you are going to the notary to sign the deeds and to get the key to your new home!.
Together we can find out the best options
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Thank you, Arjen for taking time from your schedule to answer the Dutch Mortgages Q+A. We are sure that it will answer many of the questions expats have on this topic.
Should you wish to ask Arjen a different question, here are the different ways to contact him: