De Hypotheekshop can help you find a mortgage loan that has affordable monthly payments as well as favorable terms and conditions. To benefit from taxes, you need to start paying off the loan immediately. Two main mortgages types are to be considered: the linear mortgage and the annuity or repayment mortgage. Your adviser can explain different mortgage types and steps to take out a mortgage.
With a linear mortgage, the amount of debt you repay every month is the same. On top of this, you also pay interest. At the beginning of the mortgage, debt and interest will be highest. As your debt is reduced every month, repayments will go down over the loan period. A linear mortgage allows you to pay off your mortgage as quickly as possible. This can be advantageous if you want to reduce the risk of having debt after you have left The Netherlands or if you want to rent out your home in the future (mortgage lenders are more likely to approve rental if your mortgage is low compared to the value of the property).
With an annuities mortgage, you make fixed monthly payments throughout the mortgage term (with the exception of interest rate fluctuations). Your monthly payment covers interest and loan repayment. In the early years, most of your monthly payment will go toward paying interest. Gradually, the interest part of your monthly payment is reduced in favor of paying off your loan. As only the interest is tax deductible, your net housing costs will increase during the mortgage term. You may opt for variable, fixed, or split rate annuity mortgages.
The National Mortgage Guarantee (Dutch: NHG) enables you to safely and responsibly borrow money to buy a house. The NHG provides a safety net for you and your lender in case you run into payment problems due to circumstances beyond your control such as job loss, disability, divorce or death of your partner. The National Mortgage Guarantee is available for mortgages up to a certain value (€310.000 in 2020).