A fixed versus variable rate mortgage decision changes your monthly payment, how much you can borrow, and how exposed you are to future rate moves. With a fixed rate you lock in the interest for a set period, while a variable rate moves with the market from month to month. For most expats buying in the Netherlands, the length of the fixed-rate period you choose matters more than whether you pick fixed or variable at all.
With a fixed rate mortgage (vaste rente), your interest percentage stays the same for an agreed period, known as the rentevaste periode or fixed-rate period, commonly five, ten, twenty or even thirty years. A variable rate mortgage (variabele rente) moves up or down with short-term market rates, usually reviewed monthly or every few months.
In practice, most Dutch lenders quote a slightly lower starting rate for variable mortgages than for long fixed periods, because the bank is not locking in its own funding costs for years ahead. That gap can look tempting on paper, but it also means your payment can rise if market rates increase before you refinance or the period ends.
For expats specifically, the choice often comes down to how long you expect to stay in the Netherlands. If your assignment or contract has a natural end date, a shorter fixed period, or even a variable rate, can make sense because you are less likely to need protection against rate increases for a decade.
If you expect to settle here long term, the calculation tilts the other way. Locking in a rate for ten, fifteen or twenty years removes one major source of uncertainty from an already complex relocation.
The length of your fixed-rate period does not just set your interest rate. It also determines which toetsrente, or test interest rate, a lender must use when calculating your maximum mortgage. Choose a period under ten years and per 2026 rules the toetsrente is fixed at around 5 percent, even if the actual rate on offer is lower.
If you fix for ten years or longer, lenders are allowed to test your affordability using the actual contracted rate instead of the 5 percent toetsrente. Because ten-year fixed rates in 2026 typically sit between 3.5 and 4.5 percent, this can meaningfully increase how much you are allowed to borrow.
An advisory example from 2026 illustrates the gap clearly. A household tested at the 5 percent toetsrente might qualify for around 679,000 euros, while the same household choosing a 3.8 percent ten-year fixed rate could qualify for closer to 735,000 euros, a difference of tens of thousands of euros purely because of the test rate used.
| Fixed-rate period | Toetsrente basis (2026) | Effect on maximum mortgage |
|---|---|---|
| Under 10 years | About 5 percent | Lower borrowing capacity, larger safety margin |
| 10 years or more | Actual contracted rate, roughly 3.5 to 4.5 percent | Often a higher borrowing capacity |
Mortgage rates in 2026 have stabilised after declining through 2024 and 2025. With the ECB deposit rate at around 2 percent, ten-year fixed rates for most buyers land somewhere between 3.5 and 4.5 percent, with NHG-backed loans usually priced at the lower end of that range.
Variable rates and shorter fixed periods of one to five years are expected to stay close to current levels through the rest of 2026, while longer fixed rates could edge slightly higher depending on inflation and future ECB decisions.
This means the rate gap between fixed and variable is not always large right now. When the gap is small, the certainty of a fixed rate often outweighs the modest saving of going variable, especially if you plan to stay in the Netherlands for several years.
If your mortgage falls under the Nationale Hypotheek Garantie limit, which rises to 470,000 euros in 2026, or 498,200 euros including energy-saving measures, you typically get access to the cheapest rates in either category, fixed or variable.
If you have the 30 percent ruling, the length of your fixed-rate period matters more than whether you choose fixed or variable, because banks generally calculate your maximum mortgage on your gross salary rather than the tax-free portion. The ruling mostly increases your net income, not your borrowing capacity.
Lenders also stress-test what your payments will look like after the ruling ends, since it currently runs for a maximum of five years for new cases. Many advisors recommend fixing your rate for a similar period, so your monthly payment stays predictable while the ruling is still in effect and does not suddenly jump when it expires.
If you expect to leave the Netherlands before your fixed period would end anyway, a shorter fixed period or a variable rate avoids paying for years of rate protection you will never use. The trade-off is less certainty if you end up staying longer than planned.
Because lenders treat allowances, foreign income and the 30 percent ruling differently, comparing several lenders side by side, ideally with the help of an independent mortgage advisor, usually matters more for expats than the fixed or variable decision on its own.
The main risk of a variable rate is payment uncertainty. If market rates rise, your monthly payment rises with them, sometimes within a matter of months. For expats managing a household budget in a country and cost of living that may already feel unfamiliar, that unpredictability can be harder to absorb than for someone with more financial buffer built up locally.
Lenders build in a safety margin precisely so households cannot borrow more than they could handle if rates increase, but that margin protects your eligibility, not your monthly budget once you already have the mortgage. A rate rise still means a higher payment, even if the bank calculated that you could technically afford it.
If your circumstances change, such as a new job, a longer contract, or a decision to stay in the Netherlands long term, you can usually switch to a fixed period later, though this depends on your lender’s terms and may involve extra costs.
Getting a clear picture of how each scenario affects your monthly payment and your maximum mortgage before you sign is worth the conversation. You can always get in touch to run the numbers for your specific situation.
De Kredieter helps expats compare fixed versus variable rate mortgage options across the Dutch lending market, matching each client’s income profile, ruling status and time horizon to the lenders that fit best.
Say you are a highly skilled migrant with the 30 percent ruling and a five-year assignment in Amsterdam. De Kredieter would map out your maximum mortgage under different toetsrente scenarios, compare lenders on how they treat your allowances and foreign income, and advise on a fixed-rate period that keeps your payment stable for as long as you plan to stay. If your plans change, the same advisor helps you weigh refinancing or switching before your fixed period ends.
Reach the team on @dekredieter, at www.kredieter.nl, or by phone on 020-5753320.
Yes, most Dutch lenders allow you to switch from a variable rate to a fixed rate during the mortgage term. The new rate depends on market conditions at the time of the switch rather than your original offer. Some lenders charge a small administration fee, so it is worth checking your specific mortgage terms first.
Not always, but it often does, since the lender is not locking in funding costs for years ahead. The gap between fixed and variable rates changes over time and can shrink significantly when market expectations for future rates are low, so it is worth comparing current offers rather than assuming a fixed discount.
If you have fixed your rate and market rates fall afterward, your payment stays the same until the fixed period ends, so you do not automatically benefit. Some homeowners choose to refinance early, but this usually involves a prepayment penalty that needs to be weighed against the potential savings.
Yes, Dutch lenders commonly offer fixed-rate periods up to 30 years, and this option is generally available to expats under the same conditions as Dutch nationals. A longer fixed period gives maximum payment certainty but usually comes with a higher rate than shorter fixed periods or a variable rate.
