Buying your first home in the Netherlands
Are you planning to buy your first home in the Netherlands? You may have many questions, but you are in the right place. Our expert advisors will guide you smoothly through the process and provide you with the information you need.Get in touch today and take the first step toward owning your own home.
Financing your home in the Netherlands
In the Netherlands, you can finance up to 100% of the market value of a property with a mortgage. For example, if both the purchase price and market value of a property are €400,000, you may be able to finance the full amount—provided you meet the income requirements.
However, if the purchase price is €400,000 but the market value is €390,000, you would need to cover the €10,000 difference yourself, in addition to any additional costs such as notary fees, transfer tax (if applicable), and advisory fees.
Want to know how much you can borrow and what additional costs to expect? Contact us today for personalized advice.
Renovations & Sustainability
In the Netherlands, you can typically finance up to 100% of a property's market value when applying for a mortgage. However, if you plan to invest in sustainable renovations, such as installing solar panels, HR++ double glazing, or improving insulation, you may be eligible to borrow up to 106% of the property’s market value.
This means that if your home’s market value is €400,000, you could potentially borrow up to €424,000, provided your income allows it. This extra financing can help make your home more energy-efficient and reduce long-term energy costs.
Total costs of financing a property
In the Netherlands you have to pay closing fees when you buy a property. An overview of these costs are mentioned below based on a purchase price of €500.000:
- Transfer tax of 2%: €8.000 (purchase price)
- Real estate agent fee: €5.000
- Valuation report: €900
- Mortgage application fee: €3.495
- Bank guarantee fee: €350
- Notary fee: €2.200
Total costs: €19.945
A part of these costs are tax deductible.
Important steps in the process
Step 1: Choose Your Ideal Location
The first step in purchasing a home is deciding where you want to settle. Consider factors such as proximity to work, schools, amenities, and public transport. Once you’ve chosen your ideal area, your budget becomes a key factor in the process.
Step 2: Determine Your Budget
Knowing how much you can afford is crucial. Your borrowing capacity primarily depends on your gross annual income and available savings. For example, if you and your partner have a combined income of €100,000 per year, you may be able to borrow approximately €550,000 based on a 4.85% fixed interest rate for 10 years. Understanding your budget in advance helps set realistic expectations and avoids surprises later.
Step 3: Finding Your Dream Home
Once you know your budget, the next step is searching for your ideal property. The process typically takes around 2–3 months, even when working with an experienced real estate agent. If you're considering sustainable renovations, you may be able to include a portion of the renovation costs in your mortgage, especially for energy-efficient improvements.
Step 4: Submitting Your Mortgage Application
After finding your dream home, it’s time to apply for your mortgage. Lenders usually require an income statement from a designated agency, along with supporting documents like tax returns and financial statements. If you’re self-employed, they may also consider your previous employment income to determine your borrowing capacity. We work closely with lenders to find the best mortgage options for your situation.
Step 5: Transferring Ownership at the Notary
Once your mortgage is approved and all documents are in place, the final step is the transfer of ownership at the notary office. This is when you officially become the homeowner.
Bonus Step: Aftercare & Insurance Guidance
Owning a home comes with additional responsibilities, including managing insurance and long-term financial planning. We provide ongoing support, helping you secure the right home insurance, mortgage aftercare, and financial solutions to keep your investment safe and your future secure.
Ready to start your journey towards homeownership in the Netherlands? Get in touch with our expert advisors today!
New tax regulation in 2021
When purchasing a home in the Netherlands, you will need to pay closing fees, which include a transfer tax.
As of 2021, a new tax rule was introduced regarding the general transfer tax:
- If you are 34 years old or younger, you are exempt from the 2% transfer tax when buying your first home, provided the purchase price does not exceed the set limit.
- In 2024, this limit was €500,000, but as of 2025, it increased to €525,000.
- If you do not meet the age requirement or the property price exceeds the threshold, you will be required to pay 2% transfer tax on the purchase price.
Apply now for Expat Mortgage, Insurance or Personal Loan!
We have streamlined everything to meet your needs, ensuring a seamless experience. As a customer, you want the best solution when applying for a mortgage, insurance, or personal loan—and that’s exactly what we deliver. Leveraging our expertise, we conduct in-depth research to find the most suitable financial solution tailored to you.
