Dutch Mortgage Glossary

A tax benefit for highly skilled migrants allowing 30% of salary to be paid tax-free as a reimbursement for extraterritorial costs. Lasts 5 years and significantly increases net income, though doesn't directly increase mortgage capacity.

A mortgage type where monthly payments remain constant throughout the term. Early payments are mostly interest, gradually shifting to principal over time. This is the most common mortgage type in the Netherlands.

The Dutch credit registration system maintained by Bureau Krediet Registratie. All loans, credit cards, and payment issues are recorded here. Banks check BKR before granting mortgages.

A professional inspection of a property's structural condition. Highly recommended before buying, as it reveals hidden defects and estimated repair costs. Costs approximately €300-500.

A real estate agent who represents the buyer in property transactions. They help find properties, negotiate prices, and guide through the buying process. Unlike selling agents, they work exclusively for you.

A mandatory 3-day period after signing the purchase agreement during which the buyer can withdraw without penalty. This is a legal protection for buyers in the Netherlands.

An official document from your employer confirming your employment status, income, and contract type. Required for all mortgage applications. Has a specific format prescribed by law.

A rating from A++++ (most efficient) to G (least efficient) indicating a property's energy performance. Required for all property sales and affects mortgage terms at some banks. Better labels can qualify for lower rates.

The difference between your property's current value and your remaining mortgage balance. Can be used for home improvements or withdrawn through refinancing.

A transfer tax exemption for buyers aged 18-35 purchasing their first home (up to €510,000 in 2025). This saves 2% of the property price, potentially €10,200.

Your total income before taxes and deductions. Dutch mortgage capacity is calculated on gross income, not net. Include holiday allowance (8%) when stating your income.

A visa category for foreign workers with specialized skills and above-average income. HSM visa holders are viewed favorably by banks for mortgages due to employment stability.

A legally mandated payment of 8% of gross annual salary, typically paid in May. Banks include this when calculating mortgage capacity, so your effective income is higher than base salary.

A tax benefit allowing homeowners to deduct mortgage interest from taxable income. Only applies to annuity or linear mortgages and for 30 years maximum. The deduction rate is being gradually reduced.

Literally 'buyer's costs' - indicates the buyer pays all transaction costs on top of the property price. These include transfer tax, notary fees, and other closing costs. Typically 4-6% of property value.

A mortgage where you repay equal amounts of principal each month, plus interest. Monthly payments start high and decrease over time as the interest portion reduces.

The ratio of your mortgage to the property's value. In the Netherlands, maximum LTV is 100%, meaning you can borrow up to the full property value. However, you still need savings for buying costs.

A government-backed guarantee that protects both you and the bank if you can't repay your mortgage. Available for properties up to €435,000 (2025). Results in lower interest rates (typically 0.3-0.5% less).

A legal official who handles property transfers and mortgage registrations in the Netherlands. The notary is neutral and ensures all legal requirements are met. Costs typically €1,500-2,500.

Offering more than the asking price to secure a property in competitive markets. Common in major Dutch cities where demand exceeds supply. The amount over asking price is called 'overbod'.

The legally binding contract between buyer and seller. Contains the agreed price, conditions, and timelines. After signing, both parties are committed (subject to resolutive conditions).

Clauses in the purchase agreement that allow the buyer to withdraw if certain conditions aren't met. Common conditions include financing (mortgage approval) and building inspection results.

An official appraisal of a property's market value by a certified appraiser. Required by banks to determine how much they'll lend. Costs approximately €500-750.

A one-time tax paid when property ownership transfers. The standard rate is 2% for residential properties. First-time buyers aged 18-35 may be exempt on properties up to €510,000.

The official government valuation of a property for tax purposes, determined annually by municipalities. Usually lower than market value. Used to calculate property taxes (OZB) and affects tax deductions.