The mortgage interest rate in the Netherlands rose significantly in 2022, whereas it was somewhat more stable the previous year. In 2023, mortgage interest rates ranged from 4% to 5%. A decrease in inflation and more stable mortgage interest rates encouraged purchasers to enter the market again. Looking ahead, what can we expect in the following year?
Inflation will return to pre-crisis levels in 2023.
Interest rates on mortgages are correlated with inflation. You couldn’t have forgotten about the prior year’s grocery store receipt or your electricity payment. Fortunately, during the past few months, inflation in the EU and the Netherlands has been steadily rising to more typical levels. In the upcoming months, the European Central Bank (ECB) is anticipated to keep a careful eye on inflation with the goal of seeing it stable at 2%.
Capital market interest rates
The ECB wants to lower the inflation rate in the entire eurozone to roughly 2%. This is their primary goal, even though it looks like it’s being worked on at the moment. It can be tough at times since different EU countries have differing levels of inflation or other problems. If the European Central Bank (ECB) is confident that inflation will reach the targeted levels, it will progressively start cutting interest rates again. This might potentially happen in the latter part of 2024.
What effects might we expect from mortgage interest rates in 2024?
Every ten years, mortgage consultants keep an eye on fixed-rate government bonds and the capital markets. This rate may serve as a reliable indicator for a longer term fixed interest mortgage. In the last three months, the yield on 10-year government bonds has decreased dramatically, from 3.3% to 2.5%. In recent weeks, a number of Dutch mortgage lenders have decreased their mortgage interest rates, including ABN AMRO, ING, and Rabobank. This is especially true for fixed terms like 5, 10, or 20 years that have medium or longer interest rates. Variable interest rates are still relatively high at the moment. For the remainder of the year, rates should stabilize, and by summer, they may even start to drop.
Is Now the Right Time to Buy a Property?
Prices are beginning to rise once more as a result of the stabilization of borrowing rates and the return of homebuyers to the market. You have to look closely at some properties that appear lovely or are in the ideal neighborhood or city. By that, we mean that there are once again overbidding amounts ranging from 25.000 to 75.000 euros above the listing rates. This isn’t the case for every property, though, as some are still available and allow for price negotiations with the seller. The Netherlands offers favorable overall conditions for property purchases, and price increases of 3% to 6% are anticipated by 2024.
Foreigners in need of an independent Dutch mortgage advisor
When buying a property, a lot of foreigners choose mortgage finance, frequently starting with their bank. On the other hand, we think that working with an independent mortgage expert is a better option. Our goal is to get foreigners the best possible offer by evaluating acceptance criteria and conditions in addition to interest rates, working with a large network of over 35 mortgage providers.
Our remarkable 99% success rate with foreign clients is a testament to our skill. We manage difficult cases including 30% decisions, foreign income, residency permits, and tax exemptions. Visit our specialized sections for properties in Amsterdam, Almere, or Eindhoven. As impartial consultants, we lead you through the whole procedure, guaranteeing success.
What Does It Cost?
In the Netherlands, mortgage consultants are compensated by their clients instead of earning commissions from mortgage providers, allowing them to retain complete independence. They also handle the filing of applications, document verification, and appraisal of mortgage offers in their capacity as middlemen.Information about our service costs is available on our website. Attend a no-obligation intake session to learn more about our products before moving further. As we proceed, we will provide comprehensive documentation.When purchasing real estate in the Netherlands, one-time costs like transfer tax, notary fees, and agency fees are not covered by the mortgage. For information on average purchase-related costs, visit our blog. Positive updates! Mortgage-related one-time costs are tax deductible in the Netherlands.
How Much May I take Out on a Loan?
Your ability to borrow money is influenced by your income, current debt, mortgage structure, and interest rates. Your maximum capacity is estimated using our mortgage calculator. However, for accuracy, our mortgage experts must perform a comprehensive evaluation of interest rate variations and income components (such bonuses, 13th-month pay, or allowances). You may rely on us to provide you with precise direction during this procedure.
Profit from our top-priority alliances:
We have been chosen by ABN AMRO Bank and ING Bank as a priority partner once more for 2024. This indicates that our applications are reviewed by dedicated expat teams at each of these mortgage providers, and that the reviews are completed within a day. This leads to a quicker, less stressful, and more successful mortgage application process for our clients who are purchasing homes.
Are you a Home Owner Already?
We can help you compare different mortgage providers and programs on the market if you’re thinking about refinancing or are nearing the end of your fixed-term mortgage payment. When interest rates are low or are predicted to rise, this is especially crucial. Furthermore, in the event that you intend to relocate, we can investigate the feasibility of transferring your existing mortgage plan, which would enable you to partially maintain your advantageous rates. Our goal is to learn what suits you best.
Lower Interest Rates on Mortgages
A mortgage rate lower than the customary 4.5% may be achievable in the meantime.Henk Jansen, the creator of Expat Mortgages, states that if you are considering purchasing a new property and have had a mortgage with an interest rate lower than 4.5% in the past, you can often carry over your old mortgage rate to your new residence.”Propose the loan.” Furthermore, some banks allow the buyer to take over your prior mortgage, which may have a lower interest rate, in the event that you sell your house.
With a better rate for the buyer, this can be of interest to the seller if they are going overseas and intend to repay the loan.As noted by Kenneth Leenders, CEO of Expat Mortgages, there are indications that property values are rising in some areas but not in others. While total home prices have declined this year quarter over quarter, the Amsterdam real estate agents association, MVA, has seen some signs of monthly growth in the prices of detached and corner homes, for example.
Not a Single Suggestion for a Mortgage
This calculation is not advice (for tax or other purposes); it is merely a simplified depiction of your potential new mortgage. It is recommended that you discuss your particular circumstances with a tax or mortgage counselor.
Net Monthly Payment
This is the amount, net, that you will pay for the first month of your mortgage. Your monthly payment on an annuity mortgage will gradually increase over time, while the interest you pay will decrease. This is due to the fact that when the monthly interest you are able to deduct from your income decreases, so does your net monthly payment. The gross monthly interest rate, the amount of interest you can deduct from your income if you pay tax in the highest band, and an estimate of the value for the Dutch Valuation of Immovable Property Act (“WOZ-waarde”) are used to determine your imputed income from home ownership.
Maintaining Your Calculation
You can securely store your calculation(s) for later use or change in your own context. Your information will only be used in your private setting and won’t be seen by others. The calculation(s) will be automatically deleted after three months from the date of your most recent log-in. You also have the freedom to take them down at any time. When you log in again, the calculation is updated using the most recent method of calculation. This shows that your calculation is always up to date. The following could affect the results of the computation:
FAQS:
How are mortgages handled in the Netherlands?
A particular kind of home financing is a mortgage. In the Netherlands, you are allowed to borrow up to 100% of the value of the property.
What is the required amount of savings to buy a home?
This will depend on your desired home type and your salary, which will also impact how much you can borrow.
What occurs if my temporary work permit is all I have?
Even in this situation, you can still be eligible for a mortgage. It is dependent on the type of temporary resident visa you already hold. Furthermore, there will be differences in the terms and circumstances of the mortgage and a permanent residency permit.
