Interested in the process of becoming home owner ? Below you will find the steps necessary with relevant details per step in the process.
1) Define Maximum Loan to Income
The amount you can possibly borrow for a mortgage loan depends on
- your gross yearly income (12 * monthly salary + 8% holiday money)
- your financial commitments (loans, private lease, alimony commitments, etc (not limitative))
- renovation
- energy label
2) Looking for your dreamhouse
Make your shortlist of your requirements & wishes
- Area / Neighborhood
- Type of house (or apartment), nr of rooms, maintenance status, energy label, garden, etc
- Facilities (near to public transport, airport, international school, etc)
- Private assets available for a transaction (next to loan amount)
3) Submit a bid, win the bid and receive a concept purchase agreement
After you have found the house of your choice you can submit an offer (after having aligned with us), the offer should contain;
- purchase price
- resolute condition of getting a loan (amount and nr of weeks)
- conditions such as NHG, technical inspection (3 days cooling off period), in some cases foundation aspects, indicative date of delivery
After you have won the bid, the sellers real estate agent will provide you with a (draft) purchase agreement. We will check whether the loan aspects are according to the agreements in your bid made earlier;
After having signed the contract (purchaser signs as last party) there is a 3 days cooling off period in which you can cancel the contract (by email a.o written statement) without having to state a reason.
After expiry of the 3 days cooling off period you can only terminate the purchase contract if a successfull appeal can be made to the resolutive conditions in your purchase contract (bank statement including written letter of rejection(s) and explanatory note by broker).
4) Apply for a loan and document gathering
After having received the interest offer we will upload all required docs such as (non limitative);
- employer statement a/o UWV verzekeringsbericht (*)
- salary slips regular (3, recent)
- copy passport (photopage AND adjacent page) and resident permits (front AND backside) of all applicants (if non EU nationality)
- BKR statement (www.bkr.nl) and duo.nl (studyloan) statement if applicable (www.duo.nl)
- purchase agreement signed by all parties concerned
- Recent bank statement in your name with proof of sufficient assets / savings
- Certified (NWWI) valuers report (or desktop valuation if max loan 90% of market value
The bank will assess and if approved provide you with a binding loan offer. If the application is not approved, written rejection(s) from the bank is a minimal requirement to liberate you from a potential fine of 10% of the purchase price.
If a binding offer loan is provided, a bank warrantee (bankgarantie) will be issued, as an alternative, you can transfer a deposit of 10% of the purchase price to the escrow account of the notary. This amount will be settled with the end amount payable at the notary office at date of transfer. Saves you the costs of a bank warrantee.
6) Plan a meeting with the notary office
The bank will send payment instructions to the notary office and the notary office will ask the bank to transfer the amount of the loan. You will have to transfer your amount of private assets stated in the settlement note timely to the notary office (so that it is in the escrow account of the notary on the date of transfer of ownership).
7) Transfer of ownership and registering the mortgage loan
At the notary office the notary will check your identity (do not forget to take your passport with you!). The deeds are often read to you in dutch language so if you do not master the language the notary can arrange a sworn translator in your language. The moment the deeds are signed you are Owner of your new home (and the mortgage loan will be registered in the land registry systems), Congratulations !
8) Owner of your new home !
Do you need more information ? In your yearly tax statement you will have to inform the tax authorities about your new home and new mortgage loan. Some one off costs you had to make in order to get the loan are often subject to tax relief if you are taxed in The Netherlands. You can ask the tax authorities for a “voorlopige teruggave” (provisional monthly refund) meaning that instead of getting tax money back in one installment, the refund is spread over monthly installments. If your preliminary monthly refund is set too high, you will be required to payback the surplus to the tax authorities if the yearly tax statement has been submitted by you. We strongly advise you to check the height of the provisional refund per 2 years due to anuity character of the loan.
(*) login, go to persoonlijke gegevens (left side website) and then to arbeidsverleden (right side website, blue button), select your PDF (leave BSN tick the box empty) and send this together with a recent regular salary slip to us. In this way we can calculate your income suitable for a mortgage loan.