On January 1, 2013, new rules for mortgages were introduced to safeguard homebuyers against running into excessive debt.
Mortgages in the Netherlands: New Rules
The changes are listed below, along with more recent updates and other important information about mortgages in the Netherlands.
Tax deduction on interest (renteaftrek)
Only annuities and linear mortgage models are eligible for the tax deduction on interest (renteaftrek), whereby the loan is paid off within 30 years via monthly repayments.
Transfer tax (overdrachtsbelasting)
When you purchase a property in the Netherlands, you are required to pay a one-off property transfer tax to the government. This amounts to 2% of the purchase price.
However, there are some groups of people who pay less or even no property transfer tax:
- People aged between 18 and 35 pay no property transfer tax on purchases up to 525.000 euros (in 2025). If one partner is over the age of 35, the property transfer tax is charged only on their share of the house.
- Newly-built houses do not incur property transfer tax.
- People who are buying a house off someone who bought it less than six months ago pay no property transfer tax.
On the other hand, investors pay a higher rate of 10,4% if they are buying a buy-to-let house.
This cost is not tax-deductible.
Maximum mortgage value or loan to value (LTV)
In 2025, the maximum mortgage value can be up to 100 percent of the buying price (same as 2024 and several previous years). In 2017, the value was 101 percent and in 2016, it was 102 percent.
Tax-free parental gift
Before 2024, you could use the parental gift tax exemption (schenkinsvrijstelling) for your home. This exemption does no longer exist.
However, you may be able to use the one-time gift tax exemption (eenmalige verhoogde vrijstelling), which you can make use of only once in your lifetime (from the same donor). In 2025, the amount is 32.195 euros for a purpose of your own choosing. Conditions apply.
If you are not able to make use of the one-time tax exemption, you can make use of the yearly tax exemption (jaarlijkse vrijstelling). In 2025, parents may gift 6.671 euros tax-free to their child.
Increasing an existing mortgage
Conditions for mortgages existing prior to January 1, 2013, remain unchanged, however, if you wish to increase an existing mortgage it will fall under the new rules.
National Mortgage Guarantee (NHG)
In 2025, the National Mortgage Guarantee (NHG) covers properties with a maximum value of:
- 450.000 euros for properties without energy-saving features
- 461.100 euros for properties with energy-saving features
First-time home-buyers
On January 1, 2013, the Dutch government eased the mortgage conditions for first-time home-buyers if they expect an increase in income.
Online Dutch mortgage calculator
With this handy mortgage calculator (provided by Expat Mortgages), you can calculate the maximum Dutch mortgage amount that you can borrow.
