June 27, 2026
·Moneycho Editorial
Calculating Your Dutch Mortgage: What You Actually Need to Know Before You Start
Most people start by plugging their salary into an online calculator, getting a number, and then opening Funda. That order is wrong.
I went through this process myself — visited multiple houses, sat with advisors and makelaars, and eventually decided not to buy. Not because I couldn't afford it, but because I only understood what it really meant halfway through. This is what I wish I'd read before starting.
The number is based on your salary — but not only yours
The bank looks at your gross annual salary including holiday pay. If you have a partner, their income counts too — together you determine the maximum. Banks use Nibud norms to calculate what you can responsibly borrow, and those norms change every year.
A rough rule: you can borrow roughly 4 to 4.5 times your combined gross annual salary. At €70,000 joint income that is somewhere between €280,000 and €315,000. That is a ceiling — not a recommendation.
Calculate your maximum mortgage → Try the Mortgage Calculator to see your real numbers based on your income, rate, and term.
You also need cash — more than you think
The mortgage covers the house. It does not cover everything else you have to pay to actually buy it. On a €350,000 home, expect:
- Transfer tax (overdrachtsbelasting): 2% of the purchase price (€7,000). First-time buyers under 35 may qualify for an exemption — check the current threshold at Belastingdienst.nl as it changes annually.
- Notary costs: €1,000–€2,000 for the deed of transfer and mortgage deed
- Property valuation (taxateur): €500–€800 — required by the bank before they approve your mortgage
- Mortgage advice: €2,000–€4,000 with an independent advisor — worth every cent
- Buyer's agent (aankoopmakelaar): optional, but strongly recommended in a competitive market — around 1–1.5% of the purchase price
Budget 4 to 6% of the purchase price on top of the mortgage as cash you bring yourself. On a €350,000 home that is €14,000–€21,000 out of your own pocket before you get the keys. This surprises almost every first-time buyer.
The energy label affects how much you can borrow
Banks give you more borrowing room for energy-efficient homes (label A, B, or C) compared to poorly insulated ones (label E, F, or G). The difference can be up to €25,000 in extra mortgage capacity.
That works both ways:
- A home with label A gives you more budget flexibility
- A home with label F means you will likely need to invest in insulation — and those costs come on top of the purchase price
Ask about the energy label at every viewing. It is always listed on Funda. A €10,000 difference in asking price between two similar homes can easily be offset by the energy label gap in what you can borrow and what you will spend on utilities and upgrades.
Your employment contract matters more than people say
Permanent contract (vast dienstverband): straightforward — the bank counts your full salary without question.
Temporary contract (tijdelijk): some banks accept a letter of intent from your employer (intentieverklaring), others will not. It depends on the bank and how long you have been employed. Do not assume this will work out — confirm before you fall in love with a house.
Freelance or ZZP: banks average your income over the last three years. Even if you earned well last year, a short track record or an inconsistent income means your borrowing capacity is lower than your current revenue suggests.
Figure this out before you start searching — not after you have made an offer.
Can you sell again within a year or two?
Nobody buys expecting to sell immediately. But life changes — a new job in another city, a relationship ending, an unexpected change in income.
If you buy at the top of your mortgage limit and the market dips, you could sell for less than you owe. That gap — the residual debt (restschuld) — is yours to repay out of pocket, on top of the costs of the new situation.
In cities with high demand like Amsterdam, Utrecht, or Eindhoven, that risk is lower because homes sell quickly and values tend to hold. In slower markets or smaller cities, buying at your absolute maximum carries more risk. Worth thinking about before you commit.
Annuity or linear mortgage?
To qualify for mortgage interest deduction (hypotheekrenteaftrek) in the Netherlands, you must choose a fully repaying mortgage — either annuity or linear.
- Annuity (annuïtair): equal monthly payment throughout, but you pay mostly interest in the early years and chip away at the principal slowly. Lower initial payments.
- Linear (lineair): higher payments at first that decrease over time as the principal drops. You pay less total interest over 30 years.
Most first-time buyers choose annuity for the lower initial payments — this is normal and not a mistake. Ask your advisor to calculate both. The difference in total interest paid over 30 years can be €20,000 or more.
See the difference in monthly payments → Use the Mortgage Calculator to compare scenarios side by side.
Know your borrowing capacity before you browse Funda
One practical step that most people skip: calculate how much you can actually borrow before you spend weekends viewing houses. Viewing a house at €100,000 above your real budget trains your eye and taste at the wrong price level.
Start here → The Borrowing Capacity Calculator uses Dutch VFN/Nibud norms to give you a realistic ceiling based on your income and existing financial obligations.
How to approach this in practice
- Calculate your maximum mortgage based on income — use the calculator below
- Subtract 5% as a safety margin so you are not at the absolute ceiling
- Add your savings, then subtract the extra costs (4–6%) — that is your real purchasing budget
- Search Funda in that price range, not above it
- Check the energy label on every home you shortlist
- Get independent mortgage advice before you make an offer, not after
Coming soon: What to check before choosing a house — from the first viewing to making an offer.