Understand what income is accepted, how much you can borrow, and what all the costs add up to.
The standard in the Netherlands. You pay a fixed monthly amount for the full term (usually 30 years). In the early years most of your payment is interest; over time the principal repayment portion grows. Tax deduction applies to the interest portion.
You repay a fixed amount of principal every month, so your total payment decreases over time. Higher payments at the start but you pay less total interest. Better if you expect your income to grow.
You only pay interest - the principal stays the same. No longer eligible for mortgage interest deduction (since 2013) and harder to get in full. Only available as part of a mixed mortgage now.
For expats, the annuity mortgage is almost always the right choice. It qualifies for the mortgage interest deduction and has predictable monthly payments.
The gold standard. Your full gross annual salary is used for the calculation. Any allowances (holiday pay, bonuses) count if they are structurally guaranteed in your contract.
Many Dutch lenders accept foreign income if you work for a recognised employer and pay tax in the Netherlands (or can prove income continuity). You may need 3 months of payslips in Dutch or German, or a certified translation. Not all lenders accept this - an experienced mortgage advisor is essential.
If you have a temporary contract (tijdelijk), some lenders require a declaration of continued employment from your employer. For freelancers (ZZP), you typically need 3 years of tax returns, and the lender uses your average income over those years. New ZZP starters face significantly more restrictions.
If you have the 30% tax ruling, some lenders allow you to include your full gross salary (before the ruling deduction) in the calculation, which can substantially increase your maximum mortgage.
Dutch mortgage rules are set by law (NHG limits and LTV caps):
The maximum mortgage is determined by the lower of: 100% of appraisal value, or the maximum based on your income. If you buy for above the appraisal value, you must cover the difference from your own savings.
Plan for approximately 5-7% of the purchase price in additional costs:
This is an estimate for planning purposes only. Your actual maximum mortgage depends on your specific income type, debts, credit history, the lender, and the appraised value of the property. Always get personalised advice from a mortgage advisor (hypotheekadviseur).
A Dutch mortgage advisor (hypotheekadviseur) is a licensed professional who helps you find and apply for the right mortgage. For expats, they are particularly valuable because:
They know which lenders accept foreign income, temporary contracts, or ZZP income. They compare products across multiple lenders (a bank's own advisor only sells their own products). They handle the application, communicate with the lender, and ensure you meet all deadlines in your koopakte.
An independent advisor typically costs €2,500 to €3,500. Many expat-focused advisors work in English. Look for advisors with the AFM license and specialisation in expat mortgages.