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In these 9 steps we explain which steps you must take to get your mortgage

Step 1 - Max mortgage

It is advisable to speak to a consultant from Expat Mortgages before you start looking for a suitable home. That way, you will have a clear view on the price range that fits your budget and the monthly payments related.

After the meeting with the consultant – which is free of charge – you will be able to make an accurate assessment of the price range.
This enables you to act quickly when finding a suitable home and start negotiating about price and terms right away.

The appointment can be made at a time and place that suits you best. To make an appointment, please use our contactform below.

Within one week of the appointment you can expect to receive the following information/documents:
- A summary of the meeting
- A First General Mortgage Report that includes:
1. An indication of the maximum amount you can borrow
2. Details of the price range in which you can afford to buy a home
3. Calculations setting out gross and net (monthly) expenses with different mortgage constructions and different fixed terms on interest.

calculation maximum mortgage


 

Step 2 - Housequest

There are a number of ways of finding a suitable place. You can search through specialised sites, like www.funda.nl or www.vbo.nl and make selections and appointments yourself.


On the other hand however, it is advisable to contact a real estate agent, since they can select through an intranet which is only accessible for agents and where objects are offered mostly before they are presented on the different sites. You will be informed by your agent about houses on the market through selections based upon your profile. After the selection of the objects there are different ways to proceed.

Expat Mortgages has agreements with estate agents and surveyors on the rates and communication between the estate agent and you in English. If you want more information, please send an e-mail or call our office.

1. You can visit the objects alone and arrange the appointments yourself. You will call your real estate agent on the moment that you have found a suitable object and they will accompany you from that moment onward. The agent will make a valuation of the object and give you constructional advice as well as advice on all maters that are relevant in the buying process. And of course they will do the negotiation for you. Fees for this service alter and are negotiable.

2. The agent arranges the appointments and gives you the full service for each object that you want to visit. Fees for this service alter and are negotiable as well. The fee for a full-service will be between 1% and 1,75% exclusive of 21 % value added tax (BTW).  

 

Step 3 - Buying property

If you buy a home in the Netherlands, the purchase will in most cases relate to one of the two types of immovable property described below:

1. The purchase of a house, registered independently as a whole at the land registry.
2. The purchase of an apartment right, registered as such at the land registry and managed by the board of an Owners' Association (VvE). An apartment right consists of part of a whole apartment complex. You will often come across this situation in cities like Amsterdam, Rotterdam, Utrecht and The Hague, for instance.

You have a statutory right to cancel the contract of sale within three days of signing it, without giving reasons (cooling off period).
A civil-law notary is always involved in the purchase and sale of immovable property.

The property buyer is entitled to appoint the civil-law notary of his or her choice. We will be glad to help you find a suitable civil law notary!
 

Buying a home and the accompanying costs:

As a rule of thumb, the buyer's costs usually amount to around 6% of the purchase price for the immovable property.

The contract of sale sets out information about the house, the price, the obligations of the buyer and the vendor, the date of conveyance and the guarantee. The guarantee comprises a 10% down-payment to the civil-law notary's escrow account.
That 10% can be paid in cash to the civil-law notary's third-party account if sufficient liquid assets are available.
Another option is to guarantee the 10% by a bank guarantee. Expat Mortgages can arrange the bank guarantee on your behalf.

The contract usually includes a clause stating that the agreement is subject to financing being arranged.
That dissolving clause specifies the amount of time you have to arrange financing so that the purchase can proceed. If you do not succeed in obtaining a mortgage within the agreed period (4-6 weeks in general), you can unilaterally terminate the contract. You will however need a written statement from two banks confirming that they have rejected your application for a loan.

Buying a home and the accompanying costs
The price of a house in the Netherlands is always followed by an abbreviation, either ‘KK’ or ‘VON’
‘KK’ means that all of the costs related to buying a house are paid for by the buyer ('Kosten Koper', or 'purchasing costs payable by the buyer').
‘VON’ stands for ‘Vrij op naam’, or 'purchasing costs payable by the vendor', which in most cases only applies if you are buying a newly build property.

For that reason, we will concentrate on ‘KK’

These costs include:

  • Transfer tax (2%)
  • The costs of registering the  property in your name and having that information filed in the usual registers (civil-law notary).
  • The costs of your estate agent (if applicable)
  • The fee of Expat Mortgages
  • The National Mortgage Guarantee costs (if applicable)
  • The costs of registering the mortgage in the usual registers (civil-law notary).
  • The costs of the valuation/appraisal provided by an independent surveyor
  • The bank guarantee costs (if applicable)
  • The costs of an structural survey (if applicable)

Step 4 - Mortgage Application

Banks issue loans on the basis of three principal indicators:

  1. A personal assessment
  2. Mortgaged property assessment
  3. Assessment of your financial position

The interest rate operated by the bank depends on:

  • The ratio between the value and the amount of the mortgage loan. The maximum amount that can be borrowed is 101%(figure 2017) of the value/ purchase price of the home (whichever one is the lowest).
  • The term for which the interest rate is fixed.
  • Does the National Mortgage Guarantee apply yes/no. Costs for NHG guarantee are 1% of the mortgage amount.

Personal assessment

BKR assessment
This assessment examines the extent to which the person concerned has met his financial obligations in the past. A register for this purpose is kept at the Credit Registration Office (BKR)
 

Nationality
Some banks differ their rules and terms between EU and non-EU citizens

Tax status
Verifies whether the applicant is a taxpayer in the Netherlands and/or the 30% ruling applies.
 

Mortgaged property assessment

The bank want to be sure the property is worth (at least) what you've paid for it. Hence they want to see a valuation, done by a registered valuator. As a rule, the bank won't to finance more than 102% of the value. Having 102% of the value financed provides you with the purchase amount + some of the additional costs, the 'kosten koper' costs. On average you will need to bring 2% to 5% yourself (depending on the actual costs related to purchasing and financing the property)

Assessment of your financial position
The bank wants to make certain that the applicant can afford to keep up the mortgage payments. Banks assess this by various woonquotes (home expenses quotes), which determine the percentage of the overall income that can be spent on the mortgage. 

 

Step 5 - Documents

The necessary information about the person

The necessary information about the mortgaged property

The necessary information to substantiate your financial position

 

The necessary information about the person 

  • A copy of your passport
  • A copy of your residence permit*

The necessary information about the mortgaged property

  • Copy of the purchase-agreement, signed by both parties
  • Original valuation/appraisal report
  • stuctrural survey report (if required)

The necessary information to substantiate your financial position

  • Employer's declaration. A statement made by your employer confirming your annual income based on salary, bonuses and fringe benefits.
  • Salary specification. Your monthly pay slip, which will correspond to the information given in your employer's statement, and which will also show aspects such as the 30% ruling, expenses, payable taxes, etc.
  • Statements of savings accounts or loans, investment portfolios and property owned outside of the Netherlands.
  • Confirmation of the tax department's granting of the 30% ruling (if applicable).  

     

Step 6 - The notary

The role of the civil-law notary

It is not possible to transfer the ownership of a house in the Netherlands without engaging a civil-law notary. The civil-law notary is impartial.

What does the civil law notary do? http://www.knb.nl/english

What Expat Mortgages provides: 

We made agreements with civil-law notary firms in most regions concerning the service to our customers, communication in English and the fees charged by the civil-law notary.
We made agreements with interpreters who are familiar with the methods used by the civil-law notary for the transfer of title of real estate
We check the statement of completion of the notary on behalf of our clients.
We will be present during the transfer of title procedure and, if necessary, when the (provisional) contract of sale is signed.


The civil law notary: 

  • Draws up the contract of sale (this can also be done by the estate agent or another party).
  • Draws up the deed of delivery for the home.
  • Draws up the mortgage deed.
  • Has the details filled in the public registers.
  • Carries out a survey (to establish, for example, whether the vendor is entitled to sell, whether the home is subject to an attachment order, etc.).
  • Attends to the settlement and transfer of funds.

Costs:
The fees for notarial services were liberalised a number of years ago, and civil-law notaries these days compete on price and service. You will often be given a discount if you have the civil-law notary carry out several tasks at the same time (e.g. drawing up a cohabitation contract, a will, etc.) On average, including all fees of Landregister and personal related checks done by notary, it will be € 2K including VAT for the 2 deeds combined.

 

Step 7 - Taxation

In the Netherlands paid interest regarding the mortgage of your main residence is still tax-deductible for a maximum of 30 years (Tax Box 1). Main requirement; the mortgage is a capital repayment mortgage.


Provisional refund
Usually you pay your mortgage interest monthly. For that reason it is useful if you can also receive your tax benefit monthly. Expat Mortgages organises the provisional refund for its clients free of charge for the first year.
That way, the balance between your monthly mortgage expenses and the tax rebate becomes your net monthly payment.
For more information about this topic, please click this link

Deemed rental income
Private home ownership is deemed in the Netherlands to be an income constituent for income tax purposes. Costs, charges and depreciation related to home ownership are eligible for a tax allowance.
Home ownership and the expenditure referred to above are incorporated as a fixed sum in the taxable (net) deemed rental income. Also, the payable interest and the costs related to the home acquisition debt can be deducted from the progressively taxable income from employment and home ownership (box 1).

Tax Box 3 (similar to capital gain tax with fixed gain of 4% pa, taxed with 30%)
When you have savings and investments (for example in stocks and shares), 1.2% tax is due over the value of your average net worth each year that exceeds the dispensation (the tax free amount for 2015 is € 21.330 per person) No tax is due during the period in which the 30% ruling is granted!
Savings within an (special) endowment policy and/orspecial savings accouint ('Banksparen') is not allowed anymore if you would like to benefit from the tax break on paid interest.
 
For general information about taxes in the Netherlands, please click here

 

Step 8 - Insurances

Expat Mortgages does not itself mediate for insurance other than the ones related to the mortgage.

We do however have an agreement with an insurance broker that has committed itself to our approach.
That means that in most cases we can provide you with conditions and a policy document in English.
For more information, please contact us.

Insurance policies you will need if you own a home in the Netherlands.

Building insurance (Dutch = woonhuisverzekering)
This is an insurance policy covering the financial implications of damage caused to your home by fire, burglary, etc. This is required by the bank if a mortgage is established. In the case of an apartment right, the residential premises insurance will be taken out by the home owners association (VvE) and added to the service charges.

Home contents insurance (Dutch = inboedelverzekering)
This is an insurance policy covering the financial implications of damage caused to your home contents by fire, burglary, etc.

Other insurance policies that might be useful: 

Health insurance (Dutch = ziektekostenverzekering)
Legal liability insurance for private individuals (Dutch = AVP or WA)
This insurance covers claims made against you personally. This could relate to matters such as a situation where you cause either material damage or physical injury to others, a child that kicks a ball through the neighbour's window, etc.
Car insurance (Dutch = motorrijtuigenverzekering)
 

Step 9 - Aftersales

Expat Mortgages operates a loyalty programme for existing customers who put us in touch with new ones.
For more information, please send an e-mail

Once you have decided to move out of the Netherlands, we can help you to sell your home and to pay off your mortgage.

We can also get you in touch with specialised real estate companies if you want to let your house or apartment and/or if you need to see tax consultants to tie up all the loose ends before you actually leave the country. People returning to the UK, for example, are well advised to consult a professional before taking money from a foreign country back to the UK.

You are of course also welcome to contact us for advice on your financial matters.
If we are unable to help you ourselves, we will be pleased to introduce you to one of our business partners.
This could relate to matters such as:

  • Insurances
  • Financial planning/ investment advice
  • Pension issues
  • Tax advice
  • Selling property
  • Renting/ letting property
  • Renovators
  • Interior decorators
     

Lately we've been getting a lot of complaints. From you, Dutch folks. All complaints concern our policy of advising only expats. Some of you go as far as accusing us of discrimination.

Team Expat Mortgages

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