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Next year will herald in a few Dutch mortgage changes that are important to know for expats planning to buy a property in the Netherlands.
From 2017 onwards, the Loan to Value (LTV) in the Netherlands will be lowered by one percent. This means that you can borrow less money percentually, based on the value of your home.
Despite this decrease of the LTV, you can still borrow a higher percentage (101 percent from 2017 onwards) than the value of the home if you buy a home in the Netherlands. Other EU Member States often have an LTV below 100 percent, which means you cannot buy a home in those countries without bringing in a significant amount of your own funds.
The maximum mortgage amount will not only be based on the LTV, but also on the income. As you earn more, you can borrow a higher amount. From 2017 onwards, the income of your partner will have a bigger effect on determining the maximum mortgage capacity. Because of this new regulation, you will have more financing possibilities with your partner in 2017 than now.
In short, if you buy a house then from 2017 onwards you can borrow less money in the Netherlands based on the LTV, but you can borrow more money based on your partners’ income.
To determine your maximum loan capacity, use Viisi’s free online calculating tool.
Contributed by Viisi