What is your maximum mortgage amount?

What impacts your maximum mortgage?

If you’re an expat planning to move to the Netherlands or already living here, buying a home might be on your agenda. Knowing the factors that negatively affect your maximum mortgage is crucial. This guide will help you understand these factors.

Our goal is to make it easier for you as an expat to navigate the Dutch mortgage landscape. Feel free to contact us or calculate your maximum mortgage yourself with our online calculator.

EU vs Non-EU residency

Your mortgage opportunities in the Netherlands are influenced by whether you’re a resident of an EU or non-EU country. EU residents usually find the mortgage application process more straightforward due to shared financial regulations within the European Union. However, for non-EU residents, including Britons post-Brexit, the requirements can be more stringent. For example, a British expat who could have easily secured a mortgage before Brexit now need to proof a resident permit. But still a lot is possible and our mortgage advisors know exactly what fits best in your situaton for a mortgage in the Netherlands.

Income and contract Type

The kind of employment contract you have plays a significant role in your mortgage eligibility. For those with a permanent contract with a Dutch employer and if applicable a resident permit as a knowledge worker, the process is often smooth. However, if you’re a freelancer or have multiple sources of income, your financial situation may be assessed differently. For example, a German expat with a permanent contract with a Dutch employer may receive a higher maximum mortgage than an American expat just started his business here in the Netherlands working freelance.

Income from outside the Netherlands

If your income is in a currency different than the euro, it can negatively affect your mortgage application in the Netherlands. The mortgage providers always will take a security for fluctuations in the rate of  the currency. For example, an American expat earning in US dollars living and working from the Netherlands may face challenges in 2023. When converting income to euros for mortgage calculations, lenders often use less income. This can result in a lower maximum mortgage amount.

Credit History and BKR

In the Netherlands, credit history is managed differently than in countries where accumulating debt to build credit is common. Here, credit histories are maintained by the Bureau Krediet Registratie (BKR) in Germany that is Shufa etc.  Lenders often check credit registrations from other countries.

Loans and Financial Obligations

Financial obligations incurred within the Netherlands, like personal loans, are registered with the Bureau Krediet Registratie (BKR) and can impact your maximum mortgage. For example, if you’re an expat living in the Netherlands and you have a €20,000 personal loan from a Dutch financial institution, this will be registered with BKR. This could potentially affect your mortgage eligibility and lower the maximum amount you can borrow.

Car Leasing

Similarly, leasing a car is considered a financial obligation and is registered with BKR. An Italian expat leasing a car for €400 per month will find this financial commitment recorded with BKR, which will affect the mortgage amount they are eligible for.

Conclusion

The ability to secure a mortgage in the Netherlands and the amount you can borrow are influenced by various factors. These include your EU or non-EU residency status, the nature of your employment contract, any income from outside the Netherlands, and your credit history as recorded by BKR, including existing financial obligations like loans and car leases. Given that each situation is unique, obtaining professional advice tailored to your specific circumstances is highly recommended.

how to choose mortgage adviser

How to choose a mortgage adviser

You have found your perfect house. But now you need a mortgage, which can be a daunting task. There are many options to choose from and things to consider. Fixing the mortgage interest rate for example and for how long? Using the service of a mortgage adviser will alleviate you from these tasks and help you with finding the mortgage that suits your circumstances best. It is important to have sharpest interest rate and the best terms and conditions that fit in your situation best. But how do you choose a mortgage adviser? And what should you pay attention to?

What do mortgage brokers do?

A&H Finance is a mortgage broker, which means our financial advisers have expert knowledge in financial advice, mortgages (and insurances). A mortgage broker finds the best suitable mortgage for your personal circumstances. This means that we find the best mortgage and also negotiate on your behalf with mortgage providers, advice you in the process and connect you with the necessary parties that make the financing of your house possible.

Tied or independent?

There is an important distinction between tied and independent mortgage advisers. Tied advisers are for example part of a bank and can therefore only offer you products of the organization (the bank) which with they are affiliated with. Independent brokers have the freedom to recommend mortgages from any lender and thus can compare many different products and see what mortgage suits you best. A&H Finance belongs to the latter category. We can compare over 30 mortgage providers in the Netherlands, both large systematic banks like ING, ABN-AMRO and RABO, but also smaller mortgage providers. An important note here is that some independent mortgage brokers can only compare a handful of mortgage providers. You can always ask this or read the service document of the company where you can check how many lenders the broker can compare.

Fees

All mortgage advisers are paid on the basis of a fee. This can be an hourly rate or fixed fee. Most of the time the height of the fee depend on your situation: whether you buy a house for the first time, are moving to a new house or want to remortgage for example. As said before, A&H Finance can compare many different lenders. By looking further than just your own bank, you can save a lot of time and money. For example, the long-run mortgage interest rate of banks can deviate considerably from a pension fund or insurer. And besides, our rates are very competitive and our advice always includes insurances needed for the mortgage. Our mortgage advisers are happy to explain this personally during an introduction on the phone (020 – 465 19 51).

Comparing mortgage advisers

It is wise to compare different mortgage advisers by reading client reviews. There are comparison websites like Independer and Advieskeuze.nl where you can see what clients think of their adviser. Also, ask your friends, family and colleagues about their experience with getting help from a mortgage broker.

Furthermore, you should also check whether the mortgage broker is affiliated with relevant organizations and if they have the necessary licenses. Important organizations are: the Dutch Authority Financial Markets (AFM), the Complaint institute Financial Services (KiFiD) and the Dutch Data Protection Authority (DPA). In addition, if the adviser is actually an acknowledged financial adviser (Erkend Financieel Adviseur). Of course, A&H Finance is affiliated with all organizations that are relevant.

Additionally, every financial services provider has to provide a service document on their website. This is a standardized document that specifies what the adviser can do for you, how many lenders it can compare, what its fees are and how it arranges its aftercare. This is also a practical tool for you to compare different mortgage brokers with.

A&H Finance has been awarded with best mortgage advice in the Netherlands by comparison website Independer five times in a row. Hundreds of reviews of our clients are placed on that website, and they give us a 9 on average! But also on Advieskeuze.nl and Google our clients are very happy with our service. Our office lies in Diemen, but our service stretches countrywide, with a focus on urban areas like Amsterdam, Almere, Leiden, The Hague, Rotterdam and Utrecht.

Do you want to know what your possibilities are? Call us on 020-465 1951 or request a callback. Experience the service of an independent mortgage broker!

Open House Day 2018

couple laptop mortgage adviceComing Saturday, April 7th , the semi-annual NVM Open House Day is organized. This is an event where approximately 25% of the total housing market in the Netherlands participates in. Between 11.00 a.m. and 15.00 p.m. you can freely and without an appointment visit properties that participate in this event. This is a great opportunity to orientate on the housing market in the Netherlands and perhaps find the house of your dreams.

On Funda.nl/en/ you can see a list of properties that participate in the Open House Day this Saturday. Because it can take some time to find interesting properties, it may be wise to plan a route beforehand. The nice thing about the Open House Day is that you don’t have to make an appointment to see a property, and everything is of course non-committal.

Some practical tips for the day

Here you’ll find some practical tips for the day itself. The Open House Day is the ideal opportunity to look at properties that maybe are not on the top of your wish list and therefore don’t want to take time off on a regular working day to see that property. Plan to visit about 3 to 5 houses, so that you have enough time per visit. Additionally, when you visit a house that you don’t like, do not hesitate to leave immediately. This saves you and the resident some valuable time.

Also, it’s a good idea to already take a look at the neighborhood before going to the properties to save some more time on the day itself. When you are buying a property on your own, bringing someone with you can help make the right choices. Two pair of eyes see more than one! Moreover, having a clear list consisting of your personal wishes regarding a house is practical to have.

Lastly, getting a picture of how much you can borrow and consequently how much you can offer on a house is good to know. Call us on 020 – 465 19 51 or fill out the contact form on our website for a first introductory meeting to discuss your possibilities.