Types of mortgages

Mortgages

The first thing to do is to assess how much you can borrow. Once you know how much you can borrow there are several options available for the type of mortgage.

Repayment mortgage

lineaire
annuity

Mortgage with repayment at the end of the term

savings ("spaar")
investment
life insurance

Non-repayment mortgage ("aflossingsvrij")

It is possible to combine the above mortgages and have a tailor-made mortgage, the most suitable for you.

Valuation

For the mortgage it is necessary to get the house valued (taxatie). This report gives you information about the state of the house and the mortgage company a valuation. In the past you could borrow 125% of the execution value (executie waarde). This is lower than the perceived actual value and reflects the lowest amount the house would sell for if repossessed. Currently this percentage is lower due to the crisis.

Additional Costs

Buying a house is not cheap, as a rough guide the additional costs are approximately 10% of the buying price. This includes 6% transfer tax, notary fees, valuation fees, house registration costs, estate agent fees, mortgage administration fees. But you can include these costs in your mortgage.

Tax

Interest on your monthly mortgage paid is tax deductible. This is not automatic, you need to file a request for a provisional refund. The deemed amount is then paid into your bank account in equal monthly installments. If you don't need the monthly installments you can also wait till the end of the year and fill in an income tax return form and you will receive the total refund in one big amount.

For the first year it is also possible to deduct all costs concerning the mortgage. This includes, the mortgage administration fees, valuation fees, mortgage registration costs, part of the notary fees. At the start of the following tax year you must then complete a full tax return (providing receipts). The provisional refund runs for one tax year, it should be continued automatically by the tax authorities.

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