EXPAT HOUSING SEMINAR

Amsterdam
GREAT TO HAVE YOU!
• Introductions

• Questions for tonight

• Why would we give a seminar?

8 STEPS TO YOUR DUTCH LIVING DREAM
1. Strategy & budget 5. Financing

2. House-hunting 6. Risks and insurances

3. Purchase agreement 7. Acceptance of mortgage

4. Appraisal report 8. Civil law notary

1. Strategy & budget
DEVELOPMENT REAL ESTATE PRICES
 01

HOW MUCH CAN I / DO I

WANT TO BORROW?
 RULE OF THUMB 1
Gross annual income x 4,5 =
maximum mortgage
INCOME
Employment (permanent contract or declaration of intent)

• Gross salary

• Holiday allowance

• 13th month/fixed end-of-year payment

• Sales commission/bonus (sometimes)

Own business

• Average gross profit over the last 3 years

DEBTS / CREDITS
BKR

• Personal loans

• Creditcard

• Overdraft

• Private lease vehicle

• Telephone contract

• Student loans

Be aware:

• Erfpacht (leasehold) → yearly payment (canon) times 20 will be deducted from your maximum mortgage
 RULE OF THUMB 2
Limit x 5 deducted from maximum
mortgage
 RULE OF THUMB 3
Initial student loan x 2 deducted from
maximum mortgage
Own estimations Plan a telephonic appointment for an
accurate calculation
 02

HOW MUCH IS THE HOUSE WORTH?

 MAXIMUM LOAN

100% of the market value

- Market value is determined by a valuation (taxatie)
- New construction? Value = cost of koop-aanneemsom + meerwerk

Paying over asking price?

EXISTING OR NEW CONSTRUCTION?
EXISTING HOUSES NEW CONSTRUCTIONS
• Move in faster • Construction takes 1-2,5 years (double living expenses)

• Possible maintenance/ updating due • Low utilities expense (+ possible discounted rate)

• Kosten koper/purchase costs • Vrij op naam

Making a home sustainable
• Save on energy costs

• Contribution to the climate

• Increased living comfort, possible increase in value of the house

Possible to finance with the purchase of a house

- More borrowing options (up to 106% of market value)
- Borrow extra based on income (€ 9.000)

Conditions: to be used on energy-saving renovations

ADVANTAGES
• Lower rate -> lower monthly expense
• Safety net

PREREQUISITES
• Maximum purchase price € 310.000 in 2020
• Cost: 0,7% in 2020
• NHG maximum is adjusted annually in accordance to the average housing prices
2. House-hunting
WHERE TO START?
TIPS DETERMINING PRICE
1. Local market data via NVM.nl

2. Purchase prices in the area through kadaster

3. Local information gemeente Amsterdam

4. Calcasa valuation
ADVANTAGES REAL ESTATE AGENT
1. Knowledge of local market

2. Time saving

3. Money saving (with a good agent)

4. No emotional attachments

5. Credibility of the buyer

BUYER’S OWN RESPONSIBILITY
• Apartments: is there an active and healthy VvE?

• Exact amount m²

• Technical state of the property

o Bouwkundige keuring (Structural survey)
3. Purchase contract
‘PRELIMINARY’ PURCHASE AGREEMENT
3 IMPORTANT DATES IN AGREEMENT
1. Date of transfer

2. Resolutive conditions (financing condition)

3. Security deposit / bank guarantee

Legal cooling-off period: 3 days after both parties have signed*

* With new constructions normally 5 days
BIDDING WITHOUT A FINANCIAL CLAUSE
RISK
• 10% penalty to the sellers if you cannot buy the house

MITIGATING RISKS
• Income
• BKR overview
• Collateral

Alternative: lowered financing conditions?

The right order when buying a property
1. Orientation – What do I want and what is possible

2. Search for a property accepted offer

3. Plan the mortgage appointment with Viisi

Arrange appraisal report (+ possible technical survey)

4. Sign purchase agreement

5. Arrange the mortgage (before the end of the financial clause)

6. To the notary and then time to move!

4. Appraisal report
APPRAISAL REPORT (TAXATIE)
• Determines the market value of the property

• Leasehold (erfpacht)

• Borrowing funds for renovation?

o Verbouwingsspecificatie (renovation specification)

• Market value after renovation

EXAMPLE
HOUSE WITHOUT RENOVATION HOUSE TO RENOVATE
Purchase price (= value) € 400.000 Price + expenses € 412.525
Transfer tax (2%) € 8.000 Renovation costs € 30.000
Notary (incl. translator) € 2.000
Viisi € 1.995 Value after renovation € 420.000
Appraisal € 530
______________________________________ __________+ ______________________________________ __________+

Total cost € 412.525 Total cost € 442.525

Maximum loan on collateral € 400.000 Maximum loan on collateral € 420.000

Own capital required € 12.525 Own capital required € 22.525

5. Financing
ARRANGING A MORTGAGE:
3 METHODS
3. Viisi
TYPICAL DUTCH STUFF
SOME DUTCH REGULATIONS
• Cross-channel consistency
• A mortgage product, rate or conditions, cannot be differentiated based on personal
situations/income/residence status/sales channel or otherwise. There is no negotiation on rates.

• Advice fee is charged directly to the consumer, not by the product margin
• You still pay a fee if you ask a bank for their advice

• Rules on how much you can borrow are set

• The Dutch government decides (the maximum) how much you can borrow based on income & collateral
FIXING THE INTEREST RATE
 Fixed interest rate period
Source: De Nederlandsche bank (https://statistiek.dnb.nl/dashboards/rente/index.aspx)
PAYING BACK THE LOAN
ANNUITY LINEAR
• Increasing net payments • Decreasing payments

• Constant gross payments • Higher payments in first years

• Increasing principe • Constant principle

HYPOTHEEKRENTEAFTREK
(TAX BENEFITS)
Deduction: interest € 8.000 Addition: Eigenwoningforfait € 2.400
Rate of 2% on € 400.000 Mortgage & WOZ-value: EWF = 0,60% of WOZ-value
€ 400.000

gross income – interest + EWF = taxable income

€ 40.000 - € 8.000 + € 2.400 = € 34.400

Net deduction € 5.600 * 37,35% = € 2.092 tax return

FURTHER TAX DEDUCTIONS
• Appraisal report

• Mortgage advice

• Mortgage deed

• NHG

• Extension fees mortgage offer (optional)

‘SMALL PRINT’
• Moving arrangement • Construction deposit conditions

• Penalty-free repayment • Lower risk rate adjustment during fixed rate?

• Offer validity • Mandatory other products (bank account,

insurances)
• Possibilities renting out
• Speed in acceptance process
• Lower rate at transfer?
• ....
6. Risks and insurances
INSURANCES
COMPULSORY
• Home insurance: ~ € 20 - € 40 p/mo (or in VvE)
• Life insurance?

SMART TO HAVE?
• Disability insurance
• Always check your liability/property insurances
7. Acceptance of mortgage
HOW DOES IT WORK?
AFTER THE MORTGAGE APPOINTMENT WITH VIISI
Notary
1. Transfer deed
Sending requests File complete? Receiving final mortgage offer 2. Mortgage deed

Transfer of
ownership & moving!

Receive mortgage offer Review your file Security deposit or bank guarantee?
1. By Viisi
2. By mortgage provider

Quickly uploading all the document correctly in myViisi speeds up the process significantly!
8. Civil law notary
WHAT HAPPENS AT THE NOTARY?
TWO DEEDS TO SIGN:
1. Leveringsakte (transfer deed): you become the official owner of
your new home

2. Hypotheekakte (mortgage deed): the lender gets the rights to

mortgage (and you have a large loan...)

3. Cohabitation contract (optional)

The notary takes care of the registration into public records

WHAT’S NEXT?
WHAT’S NEXT?
• Seminar

• Appointment with a mortgage consultant (phonecall)

• About Dutch Mortgages blog

We will take care of arranging a mortgage on time!

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viisi-expats.nl/feedback

After filling out the form you can schedule a

telephonic appointment with an advisor
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