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A Dutch mortgage, a challenge for expats?

Buying a property is an expensive matter. You probably won't be able to buy one without a mortgage. At H&N Associates we are specialised in giving you, as an expat, A - Z support while settling down in the Netherlands. The support includes service like housing, estate agent service, Dutch mortgages, investments, offshore pensions etc. We strive to find the best tailor made mortgage solution for you.
This solution will be the one which has the best balance between the costs, your income and the risks taken. In the following paragraphs you will read about some of the challenges you might face when you apply for a Dutch mortgage and how H&N Associates helps you overcame these.

The residence permit.
The first requirement is a residence permit. There are different treatments for EU residents than for non-EU residents.
If you are a citizen of the European Union you don't need a residence permit for staying and working in the Netherlands based on the EC Treaty. However, to get a mortgage some mortgage providers may require a residence certificate or passport. You will also need this to open a bank account or to get a "Burgerservicenummer".
When you're a non-EU resident you must have a residence permit to stay in the Netherlands for more than 90 days. When you want to buy your property shortly after your arrival in the Netherlands, you normally don't have the residence permit yet. There are two different residence permits. A temporary residence permit (Document I) and a permanent residence permit (Document II). In both cases it is possible to get a mortgage. But as you most likely stay in the Netherlands for a shorter period of time than 30 years, mortgage providers often are a little reserved in providing a mortgage to expats, because a mortgage is a long term commitment. This makes it a little more difficult to arrange the mortgage solution for non-EU expats. Yet everything is possible and we are specialised in finding the best mortgage solution for you.

Your work contract.
A second requirement is that you have a long-term work contract when you want to apply for a mortgage. However, if your work contract is temporary and your employer gives you a letter of intent, this will do as well as a long-term contract. We will assist you in getting a good letter of intent from your employer if necessary. Mortgage providers require this as an extra insurance that you will stay able to pay your mortgage payments.

The maximum mortgage amount.
The maximum mortgage amount you are able to get is normally based on your gross salary and the value of the property. Expats often have basic salaries, yet the bonuses are usually very high. If this applies to you as well, you have an extra challenge to face.
As mortgage providers usually only look at the basic salary, the maximum mortgage amount can be calculated lower than the amount you can actually afford. This is because mortgage providers don't, or only partially, take the bonuses into account. You want to buy a property that meets your wishes. And don't want to settle for less, if you know you can really afford the chosen property.
Over the years we have established great relationships with several mortgage providers. That is why we will help you to find a tailor made mortgage solution that fits your income, thus salary, bonuses, commissions etc., to make it possible to buy the property you want.

Other requirements.
These requirements are not the only issues that might affect your chance to get the best mortgage solution. Some other issues are:

• Split salary. Sometimes you, as an expat, will have income in several countries. This is something a mortgage provider has to take into account.
• Savings. To be able to buy a property you will sometimes need a certain amount of savings. This is mostly required if you have a temporary residence permit (the so called Document I permit).
• Assets in other countries. As you have lived in a foreign country before, you might have assets in this country as well. These assest might positively affect the maximum mortgage amount.
• 30% ruling. This ruling is often misinterpreted by mortgage providers. The 30% ruling is a tax advantage, which means that your taxable income is reduced by 30%.

Over the last decades we have developed great relationships with several notaries and valuators. Therefore you will get special low rates at these notaries and valuators.
At H&N Associates we take every challenge to provide you with the best mortgage solution based on your personal situation. We assist expats with financial services like mortgages on a daily basis. Our advisors are specialised in giving you the personal and professional assistance you need.

For more information please fill in the mortgage enquiry form. For all your other questions please contact us or visit the H&N Associates website, www.hnassociates.com.

Click here for a print friendly version about Dutch mortgages.