When taking out a mortgage, you borrow money from a financial institution (such as a bank) to buy a house. The house serves as collateral for the loan and the bank holds the mortgage right until the loan is fully repaid. The loan is repaid in installments over a set period (usually 20 or 30 years). Each month you pay an amount of principal and interest. This way you gradually build up equity in the house (except for the savings mortgage). The mortgage debt becomes smaller and smaller, until it is finally paid off.

How much can I borrow with a mortgage?

That depends on various factors, such as your income, the mortgage interest rate, the value of the house you want to buy, the desired mortgage type, any other loans or debts, and your personal situation. Generally, you can borrow up to 100% of the value of the house. Consult a mortgage advisor to know exactly how much you can borrow.

What types of mortgages are there?

There are several types of mortgages, each with its own advantages and disadvantages. The main types of mortgages are: 1. Annuity mortgage: Here you pay a fixed amount each month for repayment and interest. In the beginning you pay mainly interest and later more and more repayment. 2. Linear mortgage: Here you pay a fixed amount each month for repayment, and the interest is calculated on the remaining amount. So, you pay less and less interest over time. 3. Interest-only mortgage: Here you only pay interest and do not repay anything. At the end of the term you must repay the entire loan at once. 4. Savings mortgage: Here you pay a fixed amount of interest and premium each month. The premium is used to save or invest, so that at the end of the mortgage term you have built up an amount with which you can repay the mortgage debt at once. Are you a starter in the housing market? According to the new mortgage rules (valid from 1 January 2013), you can only take out an annuity mortgage or a linear mortgage (or a combination of these). Which type of mortgage is best for you depends on your personal situation and wishes. A mortgage advisor helps you to make the right choice.

What is mortgage interest?

Mortgage interest is the interest you pay on the amount you have borrowed for your mortgage. So, the mortgage interest is a fee that you pay to the bank for borrowing the money. The level of mortgage interest can vary per mortgage lender and depends on various factors, such as the amount of the mortgage, the type of mortgage, the fixed interest period, and the market interest rate.

What is mortgage interest deduction?

Mortgage interest deduction is a tax arrangement where you deduct the interest you pay on your mortgage debt from your taxable income. This means you have to pay less income tax. The purpose of the scheme is to encourage the purchase of a house. The mortgage interest deduction only applies to mortgages that have been taken out for the financing of a private residence and where the mortgage debt is repaid annuitarily or linearly. The amount of the mortgage interest deduction depends on the level of the mortgage interest, the tax rate you fall into, and the amount of your mortgage debt.

Can I refinance my mortgage?

Yes, it is possible to refinance a mortgage with another lender with better conditions, such as a lower interest rate. This can be advantageous if the current interest rate is higher than the market rate, which could reduce your monthly expenses. However, refinancing a mortgage can be associated with additional costs, such as penalty interest and advisory costs. Therefore, it is important to weigh the costs and benefits carefully before you decide to refinance.

Can I make extra repayments on my mortgage?

Yes, in most cases it is possible to make extra repayments on your mortgage. This can be done both periodically and as a one-off. It is wise to check whether there is a penalty interest or other costs associated with the extra repayment. With some types of mortgages, such as the annuity mortgage, it can even be beneficial to make extra repayments. It reduces the monthly costs and the total interest costs over the term of the mortgage. Consider whether making extra repayments is financially sensible for you. Always seek advice from a financial advisor if in doubt.

What happens to my mortgage if I lose my job or become disabled?

If you lose your job or become disabled, this can affect your mortgage. For example, if you experience a drop in income, it can become more difficult to meet your mortgage obligations. In such a situation, it's important to get in touch with your mortgage provider as soon as possible and look into possible solutions. Consider a temporary reduction of your monthly payments or a restructuring of your mortgage. If you become disabled, you may be entitled to a disability benefit from the government or an insurance policy. This can help you continue to pay your mortgage. If you can no longer afford your mortgage and there are no solutions, it can ultimately lead to forced sale of your house. Therefore, always take action at an early stage and explore options with your mortgage provider to keep your mortgage affordable.

What happens after I have paid off my mortgage?

If you have paid off your mortgage, you are the full owner of your house and you no longer have a debt with the lender. This means that you also no longer have to pay mortgage interest and repayment. After paying off your mortgage, you will receive a discharge deed from the bank, stating that the mortgage has been paid off and that the mortgage deed can be cancelled at the Land Registry. The Land Registry ensures that the mortgage is no longer registered on your house. Paying off your mortgage can also have consequences for your tax return. For example, you may no longer be eligible for mortgage interest deduction and your assets in box 3 may increase, which may mean you have to pay more wealth tax. It is wise to seek advice from a financial advisor or tax advisor when paying off your mortgage to determine what the consequences are for your personal situation and what is the best choice for your finances.

Mortgage: everything you need to consider when buying and selling your home

Buying and selling a home is a big step, and the financial side of it can be quite complicated. In this article, we will guide you through the world of mortgages. Sit back and relax, as this is going to be a lot of information. But see it as a good investment; after reading you will have an answer to all your questions about your mortgage. Let's get started!

Go directly to:

Mortgage and types of mortgages
Mortgage for buying a home
The costs of a mortgage
Mortgage when selling your home
Find a mortgage advisor and buying Real estate agent

What exactly is a mortgage?

Do you dream of buying your own house, but is your savings far from sufficient to achieve this? Then you're not alone. Some people can buy a house without a mortgage, but most can't. By taking out a mortgage, you can still buy a house without putting in a large sum of your own money. But what exactly is a mortgage?

A mortgage is a loan you take out from a bank or another financial institution. The purpose of this loan is to borrow money for the purchase of a house. The house serves as collateral for the loan and the bank holds the mortgage until the loan is paid off.

The loan is spread over a certain term, usually 20 or 30 years, and each month you pay an amount in interest and repayment. In this way, you gradually build up ownership in the house and the mortgage decreases, until it is completely paid off. Then you are the full owner of your own place.

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Mortgage types

Linear mortgage vs annuity mortgage

When you are about to buy a house and need a mortgage for this, you will have to choose between different types of mortgages. Two common mortgage types are the linear mortgage and the annuity mortgage.

According to the new mortgage rules that apply from January 1, 2013, it has been determined that starters on the housing market can only take out an annuity mortgage or a linear mortgage (or a combination thereof).

Linear mortgage

A linear mortgage is a type of mortgage where you pay off a fixed amount every month. You pay interest on the outstanding amount. Because the mortgage debt decreases every month, you pay less and less interest. Your monthly payments will therefore decrease during the term of the mortgage.

Annuity mortgage

An annuity mortgage works differently. With this type of mortgage, you pay a fixed amount to the mortgage provider every month, consisting of interest and repayment. At the beginning of the term, you pay mainly interest and little repayment. As the term progresses, you pay more and more repayment and less and less interest. This keeps your monthly payments the same throughout the term of the mortgage.

Interest-only mortgage

Another type of mortgage is the interest-only mortgage. With this mortgage, you only pay interest during the term and do not pay off anything. This keeps the amount of the mortgage debt the same during the term and you do not build up any capital. The advantage of an interest-only mortgage is that your monthly payments are lower than with other mortgage types, because you do not have to repay.

The downside is that at the end of the term of the mortgage, the full mortgage debt must be repaid. This can be done, for example, by selling the house or by taking out a new mortgage. Therefore, you run the risk of being left with a (considerable) debt at the end of the term.

In addition, the interest on an interest-only mortgage is often higher than on other types of mortgages. And good to know: from 2013 it is no longer possible to take advantage of mortgage interest deduction.

What is a savings mortgage?

Until 2013, you could also take out a savings mortgage. This is a type of mortgage where you pay an amount to the mortgage provider every month, consisting of interest and premium for a capital insurance. The premium for the capital insurance is deposited in a separate savings pot that is built up during the term of the mortgage. At the end of the mortgage term, the accumulated savings balance is equal to the amount of the mortgage debt, so you pay off your mortgage in one go.

With a savings mortgage, your monthly payments are high at the beginning of the term, because you pay both interest and premium for the capital insurance. As the term progresses, you pay less and less interest and more and more premium for the savings insurance. This gradually reduces your monthly payments.

A savings mortgage offers certainty, because you are guaranteed to pay off your mortgage at the end of the term. The interest on a savings mortgage is often higher than with other mortgage types. And from 2013, the savings premium is no longer tax deductible.

Everything you need to know about a mortgage when buying a house

Are you about to buy your first house? Chances are your head is full of questions, also about taking out the mortgage. How do you choose the right type of mortgage? What amount can and do you want to borrow? What about the National Mortgage Guarantee? And what costs will you incur? Below you read everything you need to know about mortgages when buying a house.

Mortgage for full purchase price or a portion of it?

If you do not have enough own money to buy a house, you can cover the shortage by means of a mortgage. Don't you have any savings, or don't you want to spend that money on the purchase of your house? Then you can take out a mortgage for the full purchase price, provided the house is valued at the purchase price. You can borrow up to 100% of the property value.

Have you already saved a sum of money, and do you want to spend this on the purchase of your house? Then you can also take out a mortgage for the remaining part of the purchase price. You pay the rest with your own money.

Tip: in addition to the mortgage, you will also have to deal with other costs when buying your house. Make sure you have enough left to cover these costs. Read what costs you will incur when buying a house.

Height of the mortgage

So you don't need to have a large amount of own money in the bank to be able to buy a house in the Netherlands. Of course, the bank wants to know if you are able to pay the monthly repayment and interest on the mortgage. That's why the bank weighs various factors when determining how much you can borrow, such as: the amount and stability of your income, any BKR registrations, a study debt, your living situation, age and desired form of mortgage.

The rules for mortgages for students, single people and energy-efficient houses will change in 2024. You can read more about this below.

Higher mortgage loan in 2024 for former students, singles, and energy-efficient houses

Additional costs

A mortgage gives you the opportunity to buy a house without your own money, but it is important to have enough money left over for additional costs, such as insurance premiums, maintenance costs and any renovation costs. Therefore, it is wise to consider how much money you can borrow through a mortgage and how much you can spend per month on your mortgage payments.

Also, take into account the level of the mortgage interest, as this affects the amount of your monthly payments.

How do you choose the right mortgage?

To determine which mortgage is best for you, it is important to go through several steps. First, it is good to get insight into your financial situation, such as your income, expenses and any debts. It is also wise to delve into the different types of mortgages and the pros and cons of each.

Take into account the following factors:

Interest rate: compare different providers and see which one offers the lowest interest rate. Keep in mind that a lower interest rate can result in lower monthly payments and a lower total cost in the long run. Read more about mortgage interest.
Mortgage term: think about the best term for the mortgage. A longer term means lower monthly payments, but a higher total amount of interest over the entire term.
Mortgage conditions: read the conditions of the mortgage carefully and make sure you understand how the mortgage works and what obligations you have.
Mortgage Advice: ask for help from a mortgage advisor. He/she helps you compare different mortgage providers and make the right choice for your situation.

Need a buying Real estate agent and/or mortgage advisor?

Through Mijn Verkoopmakelaar you can quickly and easily find the best buying real estate agents in your area. Sign up for free and get proposals from buying Real estate agents in your mailbox. If you want, you can also immediately schedule a free appointment with a mortgage advisor. In 30 minutes, you can ask all your questions about taking out a mortgage and the rates at different banks.

Everything you need to know about a purchase real estate agent

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Get clarity about the costs upfront
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National Mortgage Guarantee

The National Mortgage Guarantee (NHG) is a state guarantee on mortgages in the Netherlands. When you buy a house with a mortgage and meet certain conditions, you can use the NHG. This makes it safer for the bank to provide the mortgage, which often results in a lower mortgage interest rate. With a mortgage with NHG, you also always know that the monthly amount fits your situation and income.

The National Mortgage Guarantee offers protection in cases where the mortgage can no longer be paid due to, for example, a divorce or loss of job. If the mortgage has NHG, you can use the Housing Expense Facility: a temporary reduction of your housing expenses to bridge a difficult period.

If you are forced to sell the house and a residual debt arises, this can be waived under certain conditions with NHG. If you move and expect to make a loss on the sale of the house, you can sometimes finance the residual debt into a new mortgage with NHG.

Using the National Mortgage Guarantee also has a few disadvantages, such as paying an additional contribution and a limit on increasing the mortgage. Make these considerations for yourself and decide whether it is wise to use it (if you meet the conditions).

Read more about the NHG on the website of the National Mortgage Guarantee.

National Mortgage Guarantee Limit (2023)

The NHG has a limit of € 405,000,- as of 1 January 2023. This means that mortgages up to this amount can be covered by the NHG, which gives you as a buyer a lower mortgage interest rate and more security in case of any payment problems. For houses where energy-saving measures are taken, the NHG limit can be increased to a maximum of € 429,300,-.

Please note that not all mortgages are covered by the NHG and certain conditions must be met to qualify.

National Mortgage Guarantee Costs

Taking out a mortgage with National Mortgage Guarantee (NHG) involves costs. In 2023, these costs amount to 0.60% of the total mortgage loan. These one-time costs are called NHG premium and you pay it when you take out the mortgage.

The NHG premium is a percentage of the total mortgage loan and is calculated on the amount for which the NHG is granted. If you, for example, take out a mortgage of €250,000,- with NHG, then the NHG premium in 2023 is € 1.500,-.

Keep in mind that in addition to the NHG premium, you also have other costs when taking out a mortgage, such as advice and mediation costs, notary costs and appraisal costs. So include these costs in your calculations when considering a mortgage with NHG.

What are the costs of a mortgage?

A mortgage is the biggest financial obligation for many people in their life. In addition to repaying the loan, you also pay interest and various costs for taking out and maintaining the mortgage.

Read here what the costs of a mortgage are:

Mortgage advisor costs
Appraisal costs
Closure costs
Notary costs
National Mortgage Guarantee costs

The above mortgage costs are deductible for income tax.

Extra costs when buying a house

If you buy your house 'costs buyer', then in addition to these mortgage costs, you are also responsible for paying the extra costs that are made when buying the house. Think of transfer tax and costs for the purchase real estate agent. These costs are not deductible for income tax.

Want to know what total costs you will incur? Read more about all the costs of buying a house and taking out a mortgage via the link below.

All costs when buying a house

The costs of a mortgage

Sample mortgage cost calculation

A recent sample calculation of mortgage costs from one of the largest banks in the Netherlands:

Mortgage amount: €350,000

Appraisal costs	€750 (average)
Mortgage advisor	€1.650
Closing costs	€500
Notary costs for mortgage	€350
National mortgage guarantee (0.6% in 2023)	€2.100
Total - with NHG	€4.350 (1.2% of mortgage amount)
Total - without NHG	€3.250 (0.9% of mortgage amount)

Everything you need to know about your mortgage when selling your property

Are you going to sell your house soon? This means you will have to make decisions about your mortgage. Do you take your mortgage with you to your new apartment or house? Can you just do that? Is it wise to pay off your mortgage? And what are the options for taking out a new or a second mortgage? Below you will find the answers to all your questions about your mortgage when selling your home.

Selling a house and buying a new one? Take your mortgage with you!

If you sell your current home and buy a new one, in some cases you can take your mortgage with you to the new property. This is also called "moving your mortgage". This might be a good idea if you have a favorable interest rate and you want to keep this rate for your new home.

Whether you can take your mortgage with you to your new home depends on various factors, such as:

The amount of your current mortgage and the remaining term
The value of your current home and the value of the new home
The mortgage type and the conditions of your current mortgage
Your income and financial situation

If moving your mortgage is possible, you can arrange this with your mortgage provider. It may be that you have to pay a penalty for prematurely terminating your mortgage contract. Also, when buying a new property, consider additional costs, such as transfer tax and notary costs.

Using the surplus value of your property for your new purchase

Surplus value arises when the value of your property is higher than the amount of your mortgage debt. When you sell your property, you therefore have money left over after paying off your mortgage debt. You can use this money for the purchase of a new property. Read in which ways you can use the surplus value of your property. Think of financing a new property, a renovation, a supplement to your pension or the purchase of a second home.

Tip: consult a financial advisor to determine the best way for you to utilize the surplus value of your property when purchasing a new home.

Can you take a second mortgage if you have surplus value on your current property?

Yes, it is possible to take a second mortgage on your current property if you have surplus value. You can take out a mortgage up to 100% of the property value, and in the case of surplus value, this property value has increased over the years.

A second mortgage is also called a 'second loan' or 'second mortgage loan'. This second loan can be taken out when your income is sufficient according to the mortgage provider's test to bear the costs.

A second mortgage is a loan that you take out in addition to your existing mortgage. You can use the surplus value of your property as collateral for the second mortgage. The amount you can borrow depends on the value and surplus value of your property.

It is important to realize that a second mortgage brings an additional financial obligation. You not only pay interest and repayment on your first mortgage, but also on your second mortgage. In addition, a second mortgage also involves additional costs, such as notary costs and consultancy fees.

Before you decide to take out a second mortgage, it is wise to consider whether you can bear the extra monthly costs and whether it is financially wise to take out an additional loan. Always consult a financial advisor to determine if a second mortgage is a wise choice for you.

Selling a house and paying off your mortgage

You can also sell your house and pay off your mortgage. Such a payment can have different consequences, depending on the situation.

Is your house worth more than the amount of the mortgage when sold? Then you may have money left over after selling your house. This is called surplus value. You can use this surplus value in different ways. With this money you can buy a new property or finance other plans (such as a renovation). However, bear in mind that there are also costs involved in selling a property, such as real estate agent costs and any bridging costs if you have to rent another property temporarily.
Is your house worth less than the amount of your mortgage when sold? Then you have a residual debt. This means that you still have to repay an amount to the bank after selling your house to pay off your mortgage in full. It's important to know that you can't just get out of this residual debt. Often you can make arrangements with the bank about the repayment of the residual debt, for example by taking out a loan or paying in installments.
Do you fully repay the mortgage? Then the loan ends and you are therefore free of this financial obligation. This can be beneficial if you want to buy a new property and want to take out a new mortgage for it. You will then not have double housing costs. And you might also be able to get a higher mortgage because you no longer have mortgage costs from your old property. On the other hand, this does mean that you no longer have mortgage interest deduction, which can have tax consequences. It is therefore wise to seek advice from a financial advisor about this.

What to do with a savings mortgage when selling your property?

You can no longer take out a savings or bank savings mortgage. Do you have a savings mortgage running and are you selling your property? Then you have different options:

Take savings mortgage with you: It is possible to take your savings mortgage with you when moving to another property. Be aware that you cannot extend the term or increase the mortgage, so if you need more money you will have to take out an annuity or linear part that is paid off within thirty years.
Transfer savings mortgage: You can also transfer your savings mortgage to an annuity or linear mortgage, but this is not always advantageous because of the tax benefits.
Pay off extra in the meantime: This is less attractive with a savings mortgage because of the limited tax benefits. You can deposit extra money into the insurance, but there are conditions and the deposited money must be used to pay off the mortgage.
Pay out savings mortgage: This is not always financially advantageous due to the old tax rules which often work out well for savings mortgages.

It is wise to carefully consider which option best suits your situation. Let amortgage advisor advise you on this.

Real estate agent and/or mortgage adviser needed?

Through Mijn Verkoopmakelaar, you can quickly and easily find the best purchase real estate agents in your area. Sign up for free and receive proposals from purchase real estate agents in your mailbox. If you wish, you can also immediately schedule a free appointment with a mortgage adviser. In 30 minutes, you can ask all your questions about taking out a mortgage and the rates at different banks.