This article is all about removing the mystery of getting a mortgage, so that you too can jump on the Dutch housing ladder and start climbing. Everyone has different ideas about where they want to live and in which kind of house. Ah, those beautiful Dutch houses with their beautiful Dutch interiors. For others, it might be to move outside Amsterdam, away from the crowds and to have a garden. When couples start having children, then there is often the need to get a bigger house with more bedrooms and to lay down roots. That is a dream for many people and many make that dream reality. It does, of course, all come down to financial reality and the kind of mortgage you can get. This article is all about getting essential Dutch mortgage information.
Essential Dutch Mortgage Information
Owning you home makes sense in every way. Of course, it is never guaranteed and for most people it will be the single largest economic engagement that they make in their lifetimes. But, over the long term it almost always makes financial sense. There are many steps to take towards ownership and it does require a certain level of organisation. One of the most important steps is getting the mortgage. Not just the mortgage, but the RIGHT mortgage for you.
You could organise this yourself, but would you be sure that you are getting the best deal? Even very small differences at the start can add up to large amounts of money over the term of the mortgage. Add to that the fact, that this is all in Dutch and that we will probably not understand large parts of the contracts. It could also become messy. So with all these factors in mind, why wouldn’t you use an independent mortgage advisor, as many people do. Yes, there is a fee for doing that, but what price can you put on the peace of mind that you are getting the best deal.
These experts will most likely be saving you more than they cost and the advice you get and the hand holding is priceless. So with that in mind, we decided to do an interview with Arjen from Team Concepts to find out more about the role he plays in helping expats get the best mortgages.
Hi Arjen. Firstly, thank you for your time out of your schedule to answer our questions.
1.Why would expats use a mortgage expert such as yourself?
Expats are living in a completely new and different country. It has different and new rules and a very different housing market then at home. Quite often they are very busy with their work and finding their direction in The Netherlands. There are lots of things to arrange and to take care of. I am their guide and help them smoothly through the whole process of buying a property and arranging the best mortgage. In my experience, lots of expats like to be guided and if there is an experienced advisor who holds their hand.
2. During the crisis, we have seen a fairly robust property market. Why is that and is now still a good time to buy?
Yes, the moment is still here. Not many properties are offered on the housing market now and there is still a lot of competition which keeps the selling prices high. Despite the crisis, there are still many people and first time buyers who prefer to own a house instead paying for rent every month. Also your own house is an investment for the future as well.
3. How can self employed expats get a mortgage?
Also for self employed expats there are possibilities to finance for a property. Also, at most mortgage providers, they will get the same treatment as a Dutch person who is self employed. I am happy to discuss all the options. Of course it will be important that the company will be registrated at Kamer van Koophandel ( Chamber of Commerce) and also the expat has to be in the Netherlands over 1 year before applying
4. In your experience, what is the most difficult part of the process for expats and how can they better prepare for that?
With the right guidance, most steps in the process will be easy to make. It will be important to have a good, independent mortgage advisor in this city. In this still heated market it can for sure be helpful to hire a specialised buyers broker to help to find the right property for the right purchase price. I provide all the essential Dutch mortgage information.
5. What happens to expats with a mortgage if they then move on or return home?
That is always something to discuss or to make decisions in advance. Selling the house when moving back home usually causes no problem or penalties at all. When moving out the country and wanting to keep the property as a rental it can be more complicated and really something to discuss. Refinancing can be one of the options.
6. What is the optimum length for a mortgage loan?
Normally, the duration of the mortgage will be 30 years. Also you will have to choose for the period you want to fix the interest rate. That will be depending on wishes, preferences and possibilities from the expat. This will of course, be one of the points to discuss and part of the advice at the moment the application for the mortgage starts.
7. What are the options for reducing the principal amount over the time period of the loan?
Mortgage providers are getting more and more flexible on that point. By choosing the form of mortgage ( annuities and liniair) there are already downpayments on monthly base to decrease the amount of the mortgage. Beside of that, it will be possible to reduce the mortgage by doing extra payments. Especially by doing that from their own savings, there are different options without any penalty
8. Which one piece of advice do you give to all expats concerning their mortgage?
Choose a good mortgage advisor, so you know exactly in advance what you can expect. And choose a mortgage which feels comfortable.
Read more about Arjen and Team Concepts in this listing.