When purchasing a property in the Netherlands, understanding your financing options and how much mortgage you can obtain is essential. Here are key points for expats navigating the Dutch mortgage system:

1. Determine Your Budget: Before you begin house hunting, it’s important to know how much you can afford. Using an online mortgage calculator, you can estimate your maximum mortgage amount based on your income and financial situation. Keep in mind that the final amount may vary, but this gives you a solid indication of your price range.
2. Government Regulations: As of 2022, you can only borrow up to 100% of the property’s value, meaning any extra costs (e.g., notary fees, taxes) must be covered by your savings.
3. Additional Costs: When buying a home, it’s crucial to account for additional costs beyond the mortgage itself. These include service charges, municipal taxes, insurance, and maintenance. If you’re purchasing an older property, a structural inspection is advisable to assess potential maintenance costs, which may impact your overall budget.
4. Types of Mortgages:
   • Fixed-rate mortgage: Offers stability with a set interest rate for a specific term (usually 10 to 30 years).
   • Variable-rate mortgage: Interest rates fluctuate, which may lead to lower initial costs but can increase over time.
   • NHG (National Mortgage Guarantee): This government-backed guarantee reduces the bank’s risk, leading to lower interest rates. It also covers any outstanding debt if you’re forced to sell your home under specific conditions.
5. Mortgage Application Process: Once you have an idea of your budget, consider seeking advice from a mortgage advisor. They can guide you through the process, help you choose the right mortgage type, and inform you about tax benefits like mortgage interest deduction.
6. Options for Obtaining a Mortgage:
   • Execution-only: The most affordable option where you arrange the mortgage yourself without professional advice. Ideal if you are confident in handling the paperwork and legalities.
   • Remote Advice: A hybrid approach where an advisor provides assistance over the phone or online, while you handle some steps independently.
   • Full-service Advice: A more traditional and comprehensive option where a mortgage advisor takes care of the entire process for you, from selection to completion. This is the most expensive option but offers peace of mind.
7. Bouwdepot (Construction Depot): If you plan to renovate, you may consider adding a bouwdepot to your mortgage. This allows you to borrow extra funds specifically for renovation costs, which are released as needed during the renovation process.
8. Offer and Negotiation: Once you know how much you can borrow and afford, you can confidently make an offer on a property. It’s important not to be tempted to offer more than you can afford during negotiations. Stay within your budget and work closely with your advisor to ensure a fair bid.
9. Tax Benefits: In the year you buy your home, certain one-time financing costs, such as mortgage arrangement fees, can be deducted from your taxes (Belastingdienst). Be sure to consult your advisor (me?) about what costs are tax-deductible if you are uncertain.