Mortgage types

The mortgage types you can choose of are diverse. Since 2013, there is a so-called repayment obligation for newly secured mortgages. Everyone who buys a house for the first time has the choice between two mortgage types: an annuity mortgage or linear mortgage. In both cases your interest is tax-deductible.
The third type is an interest-only mortgage. You can finance a maximum of 50% of the market value of your house with an interest-only mortgage. Be aware that the interest you pay for this part is not tax-deductible.
Let one of our mortgage advisers assist you in making the right decision.

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Let’s meet! In our first introduction we explain in depth all your options for buying a house in the Netherlands.

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Annuity mortgage

With an annuity mortgage, the gross monthly costs remain fixed during the lifetime of the mortgage.

This is however only when the interest on the mortgage is fixed. The structure of the mortgage changes throughout the lifetime: at the start you pay more interest and less repayment on the principal and at the end this is reversed: you pay little interest but repay more on the principal. Because you pay less and less interest over the lifetime of the mortgage, and you can deduct mortgage interest from your income for tax purposes, this tax benefit you receive will decrease each month. This results in higher net monthly costs.

Linear mortgage

This mortgage type is similar to an annuity mortgage, but with one important difference: the monthly costs fall during the lifetime of the mortgage.

Repayments on the principal will stay the same during the lifetime of the mortgage. Consequently, interest payments will decrease and as a result the tax benefit you receive falls as well. Monthly net costs decline gradually.

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Interest only mortgage

As the name suggests, with an interest-only mortgage you do not repay the mortgage. You only pay interest.

This benefit of this type is that your monthly net costs are lower compared to the other types. A disadvantage of an interest only mortgage is that the mortgage is not hedged with either repayment or insurance. The interest-only mortgage can however be an interesting type if the value of the house is more than adequately sufficient.