Buying your first home in the Netherlands

Financing a property in the Netherlands

In the Netherlands you are able to finance up to 100% of the market value of a property. If the purchase price and the market value are, for example, both € 400.000 then you would be able to finance 100%, if your income is sufficient to support this amount. But, if the purchase price is €400.000 and the market value is € 390.000, then the difference of € 10.000 has to be paid by yourself excluding all additional fees. 

Renovations & Sustainability

You can also add a part of your renovations in the mortgage, especially when you are planning to do sustainable renovations. In most cases, you are able to borrow up to 106% based on specific sustainable renovations such as solar panels, insulation, double HR++ glazing etc.

Total costs of financing a property

In the Netherlands you have to pay for certain closing fees when you buy a property. An overview of these costs below based on a purchase price of €500.000 (average):

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1. Transfer tax of 2%: € 8.000 (purchase price)
2. Real estate agent fee: € 3.500
3. Valuation report: € 850
4. Mortgage application fee: € 2.495
5. Bank guarantee fee: € 250
6. Notary fee: €1.600
   
   Total costs: €16.695

A part of these costs are tax deductible.‍

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Important steps in the process

The first step, is knowing in which location/ area you would like to settle down and live for a longer period of time. When you have made your final decision, your budget plays a big role in this process. Knowing how much you’re able to afford is crucial. This depends mostly on your yearly gross income and the amount of savings that you have accumulated. Let’s say that you earn €60.000 gross per year and your partner earns € 50.000 gross per year. This means that you both would be able to borrow roughly € 550.000 based on an interest rate of 4,85%, which is fixed for 10 years (in 2022).

The second step, looking for a home together with a real estate agent.Finding your dream home might take a bit of time. This takes usually 2-3 month seven if you have an experienced agent working with you. The third step, is right after you have found your home and you start making offers. Is your offer accepted? Then the mortgage application process starts, which is the fourth step. Our advisors are able to guide and help you with all the information/documents. The fifth step, is the transfer of ownership at the notary office.This is the final step to become owner of your new property. The last step, is the aftercare and insurances that need to be applied for to keep everything safe and well.

New tax rule 2021

When you buy a house in the Netherlands, you must pay closing fees. As of 2021 there is a new tax rule in regards to the general transfer tax of 2%. Starters who buy a home under a purchase price of € 400.000 will receive a tax benefit of 2%. Are you also younger 34 and younger, then you don’t have to pay the 2%transfer tax. In 2022 the maximum amount is € 400.000, but this will increase to € 440.000 in 2023.