Smart financial tips for house-hunters and homeowners in 2025

Happy New Year from everyone at Expat Mortgages! As you think about putting your new year’s resolutions into action, there are three things to think about as an international homeowner or house hunter in the Netherlands. Richardo Cruz Fortes, partner at Expat Mortgages, explains more.

When the New Year starts, it's always a good time to take a look at your finances and see where you can make improvements and savings. You can put yourself in the smartest position for 2025 with a little effort and research right now.

It's exciting to use the beginning of a new year for new adventures that you want to embark on in life. If you are contemplating purchasing a house, already own a house or are thinking about your future plans, it’s time to take action!

House hunters

If you are looking to buy a house in 2025, here are the things to move to the top of your task list:

Check how much you can borrow

If you are looking for a house, check your borrowing capacity again because according to the latest norms, if you earn the same as you did in 2024, you can borrow slightly less. If you earn a bit more, then your borrowing capacity is equal, but if you earn 80.000 euros a year, you might be able to borrow around 10.000 euros less this year, compared to last year.

If you have some variable income, for example a bonus or new allowances have been added to your salary, you might be able to borrow more. But before you get your hopes up, please check the possibilities with a mortgage advisor.

Check the new NHG coverage

The amount covered by the National Mortgage Guarantee (NHG) scheme has increased. This means that if you join the plan and have to sell your house in certain circumstances at a loss, the fund covers this shortfall. It now covers homes up to 450.000 euros (just under the national average price), plus 27.000 euros for energy-saving measures in inefficient houses.

Investigate the new WOZ value and insurance options

Check the new “WOZ” values, official valuations given by the municipality, which change every year. Research the state of foundations in the areas where you are looking, whether there is a risk of flooding, and what house insurance would and wouldn’t cover.

Watch the market

Good news for buyers is that the latest figures from NVM estate agents show house price rises slowing over the whole of the Netherlands. In Amsterdam and Eindhoven, they are even trending downwards after a frenetic year in 2024. Some estate agents are saying that the market is cooling and generally house prices are not increasing so steeply any more. But the bottom line is that there is still a shortage.

If you have been waiting for interest rates to drop again, it might be wise not to hang around. Market interest linked to the rate of mortgages is going up while inflation is rising, particularly in the Netherlands. Even if you did some preparation last year, it's good to do another assessment to look at what you can borrow and what it buys in the market today.

Homeowners

If you have a home already, there’s some homework you can do to save you money.

Check if you can reduce your interest rate

If you borrowed in 2022, when mortgage rates hit a recent peak, you might want to look at whether you can save on the loan. You might want to consider breaking open the contract and fixing it again at the rate applicable today. You can also lower interest rates by doing a loan-to-value calculation. With all banks, if you have paid off some of the debt and the property value has increased, you can lower your interest rate.

This is because banks add extra costs to represent the risk of the loan, and if you "own" a larger percentage of the home’s value, that risk is calculated to be lower. It’s also wise to check that any life insurance you have is a good policy and covers what you need to repay your mortgage if something should happen to you.

Consider renovations

You might also be considering increasing your loan: you can borrow money for sustainable renovations, which will increase your comfort but also add value to the property. People who own a house and have a higher value than their mortgage might want to consider a "box 3 mortgage" that releases money to purchase a property, maybe abroad, or for other investment purposes.

Future planning

It’s not a topic some cultures like to talk about, but if you are an international with property in the Netherlands, it is particularly important to make sure that your affairs are properly organised if you should pass away.

The easiest way to fix everything for your heirs is by going to the notary and drawing up a will where it states what goes to whom, and maybe that you have taken out term life insurances to cover any potential inheritance tax at least.

Heirs of internationals can run into problems if someone dies intestate - without a will - and they have to negotiate Dutch banks, bureaucracy and form filling without a costly legal representative. It can often be a struggle for the family members that are abroad, don’t know the Dutch language and have to face dealing with these institutions that have to respect privacy laws. It's good to buy property, to have assets here, but do get your financial ducks in a row and your inheritance arranged. Then you have the peace of mind of knowing your affairs are in order.

Take stock this new year

With the changes coming in this year, make sure you take the time to reassess your situation. There might be some very simple ways that you can improve your buying power or save on your monthly outgoings.

Expat Mortgages specialises in helping expats obtain a mortgage and buy a house in the Netherlands. They are organising several events and webinars covering topics like securing a first mortgage and managing existing properties. For more information about these events, visit the Expat Mortgages event page.