Netherlands Mortgage Guide 2026: NHG, Annuity vs Linear, Rates and Costs

This guide covers every piece of that puzzle with current 2026 figures.

Buying a home starts with one key question: how much can you actually borrow? Once you know your budget, you can search with focus and make an offer with confidence.

Dutch lenders let you borrow up to 100% of the property's appraised market value. No traditional down payment is required for the property itself. Your maximum loan also depends on income. Lenders use affordability norms set annually by Nibud, the Dutch national institute for household financial guidance. As a rough rule, you can borrow 4.5 to 5 times your gross annual salary, though the exact figure depends on the current regulatory test interest rate, any existing debts, and the property's energy label.

In 2026, most buyers can borrow slightly more than last year because Nibud adjusted its norms to reflect an expected wage increase of 4.1%.

Six things that determine your maximum mortgage:

• Your gross annual income. The single biggest factor. The higher and more stable your income, the more you can borrow.
• Your partner's income. Buying together? In 2026, a second income counts more heavily in the calculation than in previous years, which means couples can often borrow considerably more than a single applicant.
• Student debt and other financial obligations. Lenders factor in student loans, private lease contracts, and personal loans. They look at your current monthly repayment obligation rather than the original amount borrowed. If you switched to a lower repayment plan, your mortgage capacity is higher than you might expect.
• Your savings. You can finance up to 100% of a property's market value. Buyer's costs always come from your own pocket, which is why knowing exactly how much you have saved matters before you start viewing.
• The property's energy label. An energy-efficient home increases your borrowing capacity. A property with label A++ or higher unlocks up to €50,000 extra in mortgage capacity under 2026 norms.
• The current mortgage interest rate. A higher rate means higher monthly costs, which lowers your maximum mortgage. A difference of just one percentage point can move your ceiling by tens of thousands of euros.

Indicative borrowing figures for 2026:

These are indicative figures. Your actual maximum also depends on your financial obligations, the current mortgage interest rate, and the lender's specific conditions.

Use the affordability calculator to get a precise figure based on your income, debts, and interest rate. For a full global payment estimate that includes closing costs, use the budget calculator.

An NHG mortgage, Nationale Hypotheek Garantie or National Mortgage Guarantee, is a Dutch government-backed guarantee scheme. When you take out an NHG-eligible mortgage, a state-backed foundation called WEW guarantees your lender against losses if a forced sale leaves a residual debt. Because the lender's risk drops, they pass that saving to you as a lower interest rate.

In 2026, the NHG limit is €470,000, or €498,200 if you finance energy-saving improvements alongside the purchase. The limit was €450,000 in 2025, so the increase gives more buyers access to the scheme.

What NHG costs you in 2026

You pay a one-time fee of 0.4% of the mortgage amount at closing. On a €400,000 mortgage, that is €1,600. The fee is tax-deductible in the year you pay it.

What NHG gives you

• A lower interest rate. Lenders typically discount NHG mortgages by 0.4 to 0.5 percentage points. On a 30-year €350,000 mortgage, that saves roughly €25,000 to €35,000 in total interest.
• The lowest risk category. An NHG mortgage sits in the lowest lender risk category by default, regardless of your loan-to-value ratio. Without NHG, lenders set your rate based on how much you borrow relative to the property value.
• Residual debt protection. If you sell under duress, because of divorce, unemployment, or the death of a partner, and the sale price falls short of what you owe, WEW covers the gap, provided you followed the repayment schedule.
• Protection in relationship breakdown. NHG offers specific provisions to help one partner remain in the home when a relationship ends, a benefit that standard mortgages do not provide.

NHG eligibility conditions in 2026

• Total mortgage at or below €470,000, or €498,200 with sustainability measures
• You buy the property to live in, not to rent out
• The property is in the Netherlands
• You take out NHG at the time you apply, not afterward
• You pay the one-time 0.4% guarantee fee
• Both annuity and linear mortgage structures qualify

Even without NHG, several lenders offer rate discounts if your property has energy label A or if you commit to improvements that achieve label A. Use the lender compare tool to see current rates across lenders for your specific loan amount and risk category.

Three mortgage types dominate the Dutch market in 2026. Each works differently, costs differently, and suits a different buyer.

Your monthly payment stays identical throughout the fixed-rate period. In year one, most of that payment covers interest. By year 28, most of it repays principal. The math balances so your gross bill never changes.

In 2026, Dutch tax law requires your mortgage to be fully repaid within 30 years to qualify for mortgage interest tax deduction (hypotheekrenteaftrek). The annuity mortgage meets that requirement.

Who it suits: Buyers who want predictable monthly costs from day one. The most common choice for first-time buyers in the Netherlands.

Tax position: Your deduction is largest in the early years when the interest portion of your payment is highest, and shrinks over time as you repay more principal.

Total interest on €350,000 over 30 years at 4%: approximately €251,000.

You repay an equal slice of principal every month. Because the outstanding balance drops faster, your monthly interest charge falls steadily. Your payment starts high and decreases every month for the life of the loan.

The linear mortgage also qualifies for mortgage interest tax deduction. Like the annuity mortgage, it must be fully repaid within 30 years.

Who it suits: Buyers with strong income in the early years who want to minimize total interest paid. Also a good fit for buyers closer to retirement who want the mortgage cleared faster.

Tax position: The deduction spreads more evenly across the 30-year term rather than concentrating in the early years.

Total interest on €350,000 over 30 years at 4%: approximately €210,000.

The linear mortgage saves you roughly €41,000 in total interest compared to the annuity mortgage. But it demands around €470 more per month at the start, which is a real constraint if you are borrowing near your maximum.

You pay only interest each month. The principal never decreases. At the end of the term, you still owe the full loan amount.

Critical rule: Interest-only mortgages taken out after January 2013 do not qualify for mortgage interest tax deduction. You pay the gross amount with no tax relief.

Who can still use it: Buyers who already hold an interest-only mortgage from before 2013 can keep it. New interest-only borrowing is typically limited to a portion of the total mortgage. Many lenders allow up to 50% interest-only alongside a repayment structure under specific conditions.

Total interest: The highest of all three types because the balance never falls.

Other mortgage types

Savings mortgage (Spaarhypotheek). You paid interest monthly and built a savings pot in a linked policy that paid off the loan at term end. Closed to new applications since 2013.

Investment mortgage (Beleggingshypotheek). Similar structure but the repayment pot was invested in funds rather than saved. Market risk left many borrowers with shortfalls. Also closed to new applications.

Credit mortgage (Krediethypotheek). A revolving credit line secured against your home. You draw and repay as needed up to a set limit. Still available under certain conditions and worth discussing with an advisor if you need flexible access to capital.

Side-by-side comparison: all three main types

Use the mortgage calculator to run your own annuity vs linear comparison with your actual loan amount and rate.

The mortgage interest rate largely determines what your home will ultimately cost you. A difference of just one percentage point can amount to tens of thousands of euros over the term of your mortgage.

Typical 2026 rates for owner-occupied mortgages:

NHG vs no NHG. An NHG mortgage sits in the lowest risk category by default. Lenders discount NHG rates by 0.4 to 0.5 percentage points. On a 30-year mortgage, that gap compounds into a very large total saving.

Loan-to-value ratio. Without NHG, lenders set your rate based on how much you borrow relative to the property value. The more you borrow relative to the value, the higher the rate tier.

Fixed-rate period. Shorter fixed periods of 1 to 5 years carry lower initial rates but expose you to market movements at renewal. Ten-year and 20-year fixed periods cost more upfront but lock in certainty. Most Dutch buyers choose 10 or 20 years.

Energy label. Several lenders discount rates for properties with energy label A or above. If you buy a less efficient property and commit to sustainability improvements, some lenders offer a rate reduction once the upgrades are done.

Mortgage type. Annuity and linear mortgages carry the same rate from most lenders. Interest-only portions, where available, are priced at a premium.

The lender. Rates vary meaningfully across Dutch banks and insurers even for identical borrower profiles. A lender with a cheap entry rate often charges more at renewal. Compare across lenders on the full term rate (looptijdrente), not just the initial rate.

Fixed rate locks your payment for a chosen period: 1, 5, 10, 20, or 30 years. You know exactly what you pay regardless of what the ECB does.

Variable rate moves with market rates. When rates fall, you benefit immediately. When they rise, your monthly payment rises too. A variable rate requires both a financial buffer and genuine comfort with uncertainty.

The 2026 context: The ECB adjusted rates several times between 2022 and 2025. Current Dutch mortgage rates sit in the 3.6% to 4.6% range depending on fixed period and NHG eligibility. Whether rates fall further or stabilize depends on inflation and ECB policy.

Practical rule: If you plan to stay in the property for 10 or more years and want stable monthly costs, a 10 or 20-year fixed period is the standard choice. If you expect to sell or refinance within five years, a shorter fixed period at a lower initial rate may cost less overall but run the numbers rather than assume.

Some lenders offer a rate consideration period (rentebedenktijd), which lets you lock in your rate before signing the mortgage offer. If your fixed-rate period is ending, you face a rate revision (renteherziening). That moment is worth treating as a full review of whether your current mortgage still suits you.

Use the refinance calculator to model what rate changes at renewal would do to your total cost.

The Netherlands lets you deduct mortgage interest on your primary residence from your taxable income for up to 30 years. In 2026, the maximum deduction rate is 37.56%, capped at the second tax bracket. Most homeowners save 1,500 to €5,000 per year through this deduction.

Only annuity and linear mortgages qualify. Interest-only mortgages taken out after 2013 do not.

The deduction is offset against the eigenwoningforfait, a notional rental income set at 0.35% of your WOZ assessed property value, which the tax authority counts as imputed income from homeownership. For most buyers, the deduction outweighs the eigenwoningforfait, producing a net tax saving.

Use the salary and tax calculator alongside the mortgage calculator to understand what you actually take home versus what you pay out each month.

You have found a home you love. The asking price is clear. But what else do you pay on top of that?

Most Dutch properties are listed kosten koper (k.k.). The asking price covers the house only. You pay all transfer costs on top. You cannot borrow these costs because lenders cap mortgages at 100% of the property value. They must come from savings, equity from a previous home, or a family gift.

Budget 4% to 6% of the purchase price in additional closing costs. First-time buyers under 35 typically pay 2% to 3% because they qualify for transfer tax exemption.

Full breakdown for a €400,000 home in 2026:

Get a full global payment estimate before you start viewing with the budget calculator.

Deductible in the year you pay them:

• Mortgage advisor and brokerage fees
• Valuation costs when required by your lender
• Notary fees for the mortgage deed
• NHG guarantee fee (0.4%)

Not deductible:

• Transfer tax
• Notary fees for the deed of transfer
• Buying agent fees
• Structural survey costs

Transfer Tax (Overdrachtsbelasting) in 2026

First-time buyer exemption (Startersvrijstelling) in 2026

If you are aged 18 to 34, have never used the exemption before, and buy a property at or below €555,000 to live in yourself, you pay zero transfer tax. On a €400,000 home, that saves €8,000 upfront.

Four conditions all apply:

• You are at least 18 and under 35 on the day of the notarial transfer, not the day you sign the preliminary agreement
• You will live in the property yourself, no rental
• You have never used this exemption before
• The purchase price is at or below €555,000

The threshold has no partial relief. A home at €555,000 means the exemption applies and you save up to €11,100. A home at €555,001 means you pay 2% on the full purchase price. Buyers near the boundary regularly negotiate just below €555,000.

Buying with a partner who is 35 or older? Only your share qualifies for the exemption. You pay 0% on half the purchase price. Your partner pays 2% on the other half.

Buying your first home is exciting. You don't yet have equity from a previous property, the housing market is competitive, and you're asking yourself: how much can I actually borrow?

You face the same 100% LTV limit as any other buyer, which means you can borrow the full appraised value of the home. But you still need savings for kosten koper. And without equity from a previous sale, you have fewer resources to draw on.

Family gift (schenking). Parents can gift each child up to approximately €31,000 tax-free in 2026 for any purpose. A specific higher exemption for first home purchases applies under certain conditions. Check the current rules with a tax advisor before you rely on this.

Family mortgage (familiehypotheek). A parent lends you the closing costs at a documented interest rate. This keeps assets within the family while satisfying the lender's requirements.

Starter loan (starterslening). Some municipalities offer subsidized starter loans to bridge the gap between your maximum mortgage and the purchase price. Availability and terms vary by municipality. Ask your mortgage advisor whether your target area participates.

First-time buyer and NHG: a strong combination

If you buy below €470,000 in 2026, you can qualify for both the starter transfer tax exemption (if under 35) and an NHG mortgage at the same time. That combination gives you:

0% transfer tax on homes below €555,000, saving up to €11,100

A lower interest rate, typically 0.4 to 0.5 percentage points below non-NHG rates

Residual debt protection if a forced sale leaves you underwater

On a 30-year 400,000 euro NHG mortgage at a 0.4% rate discount, you save roughly 28,000 to €35,000 in total interest compared to a non-NHG mortgage at the same term. The one-time NHG fee of €1,600 pays back within the first two years.

The first-time buyer checklist before you start viewing

Virtually every Dutch mortgage lender requires buildings insurance (opstalverzekering) as a condition of the loan. The property serves as collateral, and the lender needs it covered from day one. Contents insurance (inboedelverzekering) is separate and optional but recommended.

When you sign the preliminary purchase agreement (voorlopige koopovereenkomst), you owe either a 10% deposit or a bank guarantee within three days. A bank guarantee (bankgarantie) typically costs 300 to €400 and lets you reserve the cash rather than hand it over immediately. If the sale fails through your fault, you forfeit this amount.

Always include a financing condition clause (financieringsvoorbehoud) in the preliminary agreement. This protects you if the mortgage falls through, and lets you withdraw without losing the deposit.

Most Dutch lenders let you repay 10% to 20% of the original mortgage balance each year without penalty. Extra repayments on a linear mortgage cut the term significantly because your principal drops faster. On an annuity mortgage, extra repayments reduce the remaining term or lower future monthly payments depending on what you negotiate with the lender.

Use the extra payment calculator to see how much interest you save by making additional repayments and how quickly you could clear the mortgage.

If your fixed-rate period ends or market rates fall materially, refinancing (oversluiten) can save tens of thousands of euros over the remaining term. The main cost to factor in is the early repayment penalty (boeterente), which compensates the lender for the interest it loses when you switch.

Use the refinance calculator to compare your current cost against a new rate, accounting for the penalty, to see whether switching makes financial sense.

Dutch lenders count outstanding consumer credit against your borrowing capacity at a higher notional rate than mortgage debt. A 10,000 euro personal loan can reduce your maximum mortgage by €50,000 or more depending on the rate and term.

Consolidating high-interest debt before you apply can meaningfully increase how much you qualify for. Explore your options with the debt consolidation calculator and the loan calculator with extra payments.

Dutch housing costs, both rents and purchase prices, have risen sharply since 2020. Whether renting or buying makes more financial sense depends on your time horizon, local prices, and mortgage rate. The rent vs buy calculator compares total costs over 5, 10, and 20-year horizons, including the eigenwoningforfait, mortgage interest deduction, and projected price appreciation.

The full process from accepted offer to keys typically takes 8 to 12 weeks.

Gather these before your mortgage advice appointment:

Most recent payslip (loonstrook)

Employer's declaration (werkgeversverklaring), a standard Dutch income certificate

Overview of any student debt and current monthly repayment amount

Details of outstanding loans, private lease, or other financial obligations

Savings account statements

Partner's income details if buying together

For self-employed buyers: three years of tax returns (aangifte inkomstenbelasting) and recent profit and loss statements

Missing one or two items will not stop the process. A mortgage advisor tells you exactly what is needed and when.

The 2026 NHG limit is €470,000. For mortgages that include financing for energy-saving improvements, the limit rises to €498,200. You pay a one-time 0.4% fee on the mortgage amount, and the fee is tax-deductible.

An annuity mortgage keeps your monthly payment flat. Early payments are mostly interest, and later payments are mostly principal. A linear mortgage repays equal chunks of principal every month, so your payment starts higher but falls consistently. Both qualify for mortgage interest tax deduction. The linear mortgage costs roughly €41,000 less in total interest over 30 years on a 350,000 euro loan, but demands significantly higher payments in the first decade.

You need no deposit for the property itself. The Netherlands allows 100% loan-to-value mortgages. But you must fund all buyer's costs from savings, typically 4% to 6% of the purchase price, or 2% to 3% if you qualify for the first-time buyer transfer tax exemption.

Kosten koper include transfer tax (0%, 2%, or 8% depending on buyer type), notary fees for both the transfer deed and the mortgage deed, an independent property valuation, and mortgage advisory fees. First-time buyers under 35 who purchase below €555,000 skip the 2% transfer tax, cutting their total closing costs roughly in half.

Yes. Dutch lenders require opstalverzekering as a condition of the loan because the property serves as collateral.

Yes. Most lenders allow penalty-free extra repayments of 10% to 20% of the original loan per year. Extra repayments reduce your outstanding balance, lower future interest charges, and can shorten your loan term considerably.

With NHG, typical 10-year fixed rates run 3.6% to 4.0%. Without NHG, expect 4.0% to 4.4% for the same fixed period. Rates vary by lender, energy label, and loan-to-value.

Buyers aged 18 to 34 who have never used the exemption before and purchase a property at or below €555,000 as their primary residence pay 0% transfer tax. Above €555,000, you pay 2% on the full purchase price with no partial exemption.

A global payment estimate gives you the total monthly cost of owning a property, combining your mortgage payment, insurance, and other recurring costs alongside the upfront kosten koper. Use the budget calculator to build one before you start viewing.

A loan calculator with extra payments shows you the interest you save and the time you cut from your mortgage term when you repay more than the minimum each month. Use the extra payment calculator to model any scenario.

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