The simple and fast way to your mortgage investment in The Netherlands

When determining your budget and later on in the mortgage application process, we will need the following information from you:
1. Information about you personally
2. Information about existing mortgage(s) and peronal loans
3. Information about the to be mortgaged property
4. Information to substantiate your financial position

1. Necessary information about you personally
• A copy of your passport
• A copy of your residence permit*

2. Necessary information about the existing mortgage(s) and/or personal loan(s)
• Copy contract of the current loan agreements
• Recent statement outstanding balance(s)
• Recent statement value proprty/properties

3. Necessary information about the mortgaged property
• Copy of the purchase-agreement, signed by both parties
• Original valuation/appraisal report
• Structural survey report (if required)

4. Necessary information to substantiate your financial position
• Employer’s declaration. A statement made by your employer confirming your annual income based on salary, bonuses and fringe benefits.
• Salary specification. Your monthly pay slip, which will correspond to the information given in your employer’s statement, and which will also show aspects such as the 30% ruling, expenses, payable taxes, etc.
• Statements of savings accounts or loans, investment portfolios and property owned outside of the Netherlands.
• Confirmation of the tax department’s granting of the 30% ruling (if applicable).

There are a number of ways of finding a suitable place. You can search through specialised sites, like www.funda.nl orwww.vbo.nl and make selections and appointments yourself.

On the other hand however, it is advisable to contact a real estate agent, since they can select through an intranet which is only accessible for agents and where objects are offered mostly before they are presented on the different sites. You will be informed by your agent about houses on the market through selections based upon your profile. After the selection of the objects there are different ways to proceed.

Expat Mortgages has agreements with estate agents and surveyors on the rates and communication between the estate agent and you in English. If you want more information, please send an e-mail or call our office.

1. You can visit the objects alone and arrange the appointments yourself. You will call your real estate agent on the moment that you have found a suitable object and they will accompany you from that moment onward. The agent will make a valuation of the object and give you constructional advice as well as advice on all maters that are relevant in the buying process. And of course they will do the negotiation for you. Fees for this service alter and are negotiable.

2. The agent arranges the appointments and gives you the full service for each object that you want to visit. Fees for this service alter and are negotiable as well. The fee for a full-service will be between 1% and 1,75% exclusive of 21 % value added tax (BTW).

When buying a house in the Netherlands, the purchase will in most cases relate to one of the two types of immovable property described below:
1. The purchase of a house, registered independently as a whole at the land registry.
2. The purchase of an apartment right, registered as such at the land registry and managed by the board of an Owners’ Association (VvE). An apartment right consists of part of a whole apartment complex. You will often come across this situation in cities like Amsterdam, Rotterdam, Utrecht and The Hague, for instance.

You have a statutory right to cancel the contract of sale within three days of signing it, without giving reasons (cooling off period).
A civil-law notary is always involved in the purchase and sale of immovable property.
The property buyer is entitled to appoint the civil-law notary of his or her choice. We will be glad to help you find a suitable civil law notary!

As a rule of thumb, the buyer’s costs usually amount to around 6% of the purchase price for the immovable property.

The contract of sale sets out information about the house, the price, the obligations of the buyer and the vendor, the date of conveyance and the guarantee. The guarantee comprises a 10% down-payment to the civil-law notary’s escrow account.
That 10% can be paid in cash to the civil-law notary’s third-party account if sufficient liquid assets are available.
Another option is to guarantee the 10% by a bank guarantee. Expat Buy2Let can arrange the bank guarantee on your behalf.

The contract usually includes a clause stating that the agreement is subject to financing being arranged.
That dissolving clause specifies the amount of time you have to arrange financing so that the purchase can proceed. If you do not succeed in obtaining a mortgage within the agreed period (4-6 weeks in general), you can unilaterally terminate the contract. You will however need a written statement from two banks confirming that they have rejected your application for a loan.

Buying a home and the accompanying costs
The price of a house in the Netherlands is always followed by an abbreviation, either ‘KK’ or ‘VON’
‘KK’ means that all of the costs related to buying a house are paid for by the buyer (‘Kosten Koper’, or ‘purchasing costs payable by the buyer’).
‘VON’ stands for ‘Vrij op naam’, or ‘purchasing costs payable by the vendor’, which in most cases only applies if you are buying a newly build property.
For that reason, we will concentrate on ‘KK’
These costs include:
Transfer tax (2%)
The costs of registering the  property in your name and having that information filed in the usual registers (civil-law notary).
The costs of your estate agent (if applicable)
The fee of Expat Mortgages
The National Mortgage Guarantee costs (if applicable)
The costs of registering the mortgage in the usual registers (civil-law notary).
The costs of the valuation/appraisal provided by an independent surveyor
The bank guarantee costs (if applicable)
The costs of an structural survey (if applicable)

Rental income is not taxed in the Netherlands! The interest you would pay on the loan is not tax deductible.
In box 3 you will be taxed for the equity.
The tax definition of equity = value of the property minus the outstanding mortgage.
In general the WOZ value will be leading. Depending on the rental income this value can be adjusted. Your tax advisor will know how the deal with this.

There are several reasons why it makes sense to keep in touch with us!
1. You would like to buy another investment property in the future.
2. You would like advice on other financial matters.
If we are unable to help you ourselves, we will be pleased to introduce you to one of our business partners. This could relate to matters such as: Insurances, Financial planning/investment advice, Pension issues, Tax advice, Renovators or Interior decorators.
3. You are moving out of the Netherlands. In that case we can help you to sell your home.
4. You would like to get you in touch with a tax consultant to tie up all the loose ends before leaving the Netherlands.

Expat Mortgages has a loyalty program for existing clients who refer us to new ones. For more information, please send us an e-mail!