This is possible, provided the mortgage is a capital repayment mortgage (not an interest-only mortgage) and the property is your main residence. And with European banks set to lower interest rates to meet competition, mortgage rates could fall even further. The NHG (Nationale Hypotheek Garantie) is a scheme that guarantees repayment of a mortgage, even if the borrower becomes unable to do so directly. This has meant expats earning in another currency have more options. While many mortgage providers will advise you to take our life insurance, it isn’t a requirement. ABN AMRO's term life insurance lets you designate beneficiaries who will receive a one-off lump sum payment upon your death. Mortgage advisors or brokers act as an intermediately between you and the mortgage provider, to advise you on the best fit for your finances. Each municipality determines its own property tax rate; in general, this ranges between 0.1% and 0.3% of the property value. Providers of home and contents cover in the Netherlands include: You can compare home contents policies using a reputable price comparison website such as Pricewise. Mortgage life insurance is a special type of insurance policy offered by banks that are affiliated with lenders and by independent insurance companies. Read the latest updates and other important information! Many insurance companies will offer a discount if you can present a BORG certificate – to show your property has adequate protection against burglary and certified security equipment installed. Annuity. A high-value contents policy (kostbaarhedenverzekering) will be needed to cover for rare or expensive possessions. The interest rates on NHG-backed mortgages are usually the lowest available. Mortgage life insurance rates change from year to year. Although, according to bank ABN AMRO, there are some signs of this surge slowing slightly. The application fee for the NHG is 1% of the mortgage value. Towards the end of the mortgage period, the balance reverses meaning you pay lower interest payments and higher loan repayments. The best mortgage for an expat depend on lifestyle and personal circumstances. Good news, though: keep in mind that you will be able to borrow more if you enjoy the 30% tax ruling on your income. This usually covers furniture, glass breakage, and general contents. Getting a mortgage in the Netherlands is exciting – you are buying a home! But it's not like other life insurance … This type of life insurance is often sold as a decreasing term policy, and it typically pays out as a lump sum. Although mortgage rates in the Netherlands are currently very low, rates vary depending on interest rates. It's tied in to your mortgage, so the amount covered decreases as you pay your mortgage off. And of course, all tax deductions fall away if you are no longer resident in the Netherlands. Here's what to take into account when buying a house in the Netherlands. Who can get a mortgage in the Netherlands? Mortgages in the Netherlands may be arranged directly with lenders (typically the larger banks) or via a mortgage advisor (hypotheekadviseur). Alternative Dutch mortgage models are mainly variations on annuities and linear mortgages. * Choose an amount that reflects your financial needs in the event of a claim. But once you understand the steps and requirements for the different Dutch mortgages, you’re well on your way to become a homeowner. The amount of coverage will equal the amount still owed on the mortgage, not to exceed $200,000 VMLI is a decreasing-term insurance, meaning that your coverage amount goes down as your mortgage balance goes down. Read on! The borrower repays a fixed amount each month. See our guide to buy-to-let mortgages in the Netherlands for more information. A combination of interest-only, savings and investment mortgages. Over the mortgage term, you do not pay off your debt but it is redeemed at the end of the term via the life insurance. This mortgage combines a loan with a life insurance policy. VMLI is decreasing term insurance which reduces as the mortgage balance declines. As well as the price of the property and the mortgage repayments, there are other costs involved in taking out a mortgage. Whereas before you could borrow 101% of the value, the maximum mortgage is now 100% of the property price. This new mortgage repays your existing mortgage in full and you start making monthly payments on your new mortgage. Life insurance for your mortgage is not compulsory – but it is highly recommended for most people. NOTE: These settings will only apply to the browser and device you are currently using. For instance you might want to pay off a mortgage … Amount of cover? Try our corporate solution for … Mortgage providers can insist you have life insurance in place, but they cannot force you to have their insurance. Receive the IamExpat Weekly and Special Offers from our Partners. You pay monthly interest on the amount you borrow, which depends on the value of your house. As long as you are paying taxes in the Netherlands, it is possible to claim a tax refund on mortgage interest payments. This is due to banks having to absorb the risk of currency fluctuations. Other types of insurance can affect your mortgage agreement in the Netherlands, from contents insurance to life insurance. A study from Aviva reveals that just 58% of mortgage holders have life insurance. Find Dutch mortgage providers for expatriates who want to buy a property. This usually covers furniture, glass breakage, … How to apply for a mortgage in the Netherlands, Refinancing a mortgage in the Netherlands, See our guide to buying a home in the Netherlands, guide to buy-to-let mortgages in the Netherlands, Learn more in our guide to the Dutch tax system, See our guide to WOZ for more information, See our Directory for a list of Mortgage Advisors in the Netherlands, Read our guide to buying property in the Netherlands, tax advantages of buying property in the Netherlands, Proof of permanent employment in the Netherlands or proof of income, For employees, but also temporary workers or PhD students: a statement from your employer (, To have lived in the Netherlands for six months (only required by some providers). Providers of home cover and contents insurance in the Netherlands include: Contents insurance (inboedelverzekering) is also recommended. There are two main types of life insurance for a mortgage. Banks only permit this kind of mortgage under certain circumstances, and you will need to repay the capital at a later date from savings or investment accounts. As lenders continually cut mortgage rates for short, medium- and long-term loans, homebuyers can lock in record low rates for two, five, or up to 10 years or more, increasing their financial security. While prices are high, mortgage rates are at an all-time low. Check these real estate companies and agents (makelaars). If you pay off your mortgage, the VMLI coverage will end. VMLI provides up to $200,000 mortgage life insurance and is payable only to the mortgage holder (i.e., a bank or mortgage lender), not to a beneficiary. The mortgage process in the Netherlands can be a little complicated. Bear in mind that these calculations can only act as a guide. Doing so depends, however, on the type of mortgage you have. 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