Choosing the right mortgage type as an expat in the Netherlands usually comes down to three things: how your income is taxed, how long you plan to stay, and how much certainty you want in your monthly payments. There is no separate expat mortgage type. Dutch banks work with the same repayment structures for everyone. What changes for you is which structure actually makes sense given your situation.
In the Netherlands you can choose from three main repayment structures, and many expats end up combining two of them rather than picking just one. The choice affects your monthly payment, how much interest you pay in total, and whether you qualify for mortgage interest deduction.
The annuity mortgage keeps your total monthly payment fixed for the whole term. Early on you pay mostly interest, and the repayment part slowly grows as the loan balance shrinks. It is the most common choice for new mortgages in the Netherlands, partly because the fixed monthly amount is easy to plan around.
The linear mortgage works differently. You repay a fixed amount of the loan every month, so the interest charge, and therefore your total payment, goes down over time. You end up paying less interest over the full term, but your payments start higher, which can lower the maximum amount a bank is willing to lend you.
Interest-only mortgages taken out before 2013 still qualify for mortgage interest deduction under transitional rules, but new interest-only loans no longer do. In 2026, major lenders including Rabobank, ABN AMRO and Florius cap the interest-only portion of a new mortgage at 30 percent of the property value, with a maximum of 150,000 euros. Since 2013, only the annuity and linear structures qualify for interest deduction on new mortgages.
| Type | How it works | Best suited for |
|---|---|---|
| Annuity | Fixed total monthly payment, interest share drops over time | Expats who want predictable monthly costs |
| Linear | Fixed repayment amount, total payment drops over time | Expats who want less total interest and can afford higher payments early on |
| Interest-only (capped) | Pay interest only on part of the loan, up to the 2026 limit | Expats combining it with annuity or linear on the rest of the loan |
Many expats assume the 30 percent ruling, the scheme that makes up to 30 percent of your salary tax free, automatically means they can borrow more. In practice it usually does not work that way.
Dutch banks generally calculate your maximum mortgage based on your gross salary, as if the full amount were taxable. That means the 30 percent ruling mostly improves your net income and monthly breathing room, not the maximum amount you are allowed to borrow. Some lenders also stress-test your affordability for the period after the ruling ends, since it runs for a maximum of five years.
Because of that expiry date, a linear mortgage is often a sensible choice for expats with the ruling. Advisers who handle these cases regularly, like the advisory team, typically build the repayment strategy around when the ruling ends rather than around today’s numbers alone. Repaying faster while your net income is relatively high means your payments are already lower by the time the ruling stops.
Combining that with a fixed-rate period long enough to cover the years the ruling still applies keeps your monthly costs predictable once it ends.
The number of years you fix your interest rate for changes both the rate you pay and how much you are allowed to borrow. That second part surprises a lot of expats.
For fixed-rate periods shorter than ten years, Dutch regulator AFM requires banks to use a test rate of around 5 percent in 2026 when calculating your maximum mortgage, even if the actual rate on offer is closer to 3.5 to 4 percent. Fix your rate for ten years or longer, and banks are allowed to use the actual contracted rate instead, which usually means you can borrow more. The gap can be substantial, sometimes tens of thousands of euros between a shorter and a longer fixed period on an identical income.
For expats, this creates a real trade-off. A shorter fixed period gives you more flexibility if you expect to move again, but it can shrink your maximum mortgage. A longer fixed period usually increases your borrowing room and locks in today’s rate, but it commits you financially for longer than some expats feel comfortable with given an uncertain length of stay.
A lot of expats like the lower monthly cost of an interest-only portion, and combining it with an annuity or linear mortgage on the rest of the loan is common practice. It brings your monthly payment down without giving up interest deduction entirely, since the deductible part still runs through the annuity or linear portion.
The catch is that you build no equity on the interest-only part. If property prices fall, or if you need to sell earlier than planned, that portion of the loan is still outstanding in full. Picking a mortgage type without factoring this in can leave you with less room to negotiate on your next move, especially if you relocate again within a few years.
Switching structures later is possible but rarely free. Refinancing an existing mortgage to change the repayment form usually involves advisory costs, a new valuation, and sometimes penalty interest if you are inside a fixed-rate period. Getting the balance right at the start saves you that cost down the line.
The Nationale Hypotheek Garantie, or NHG, is a government backed safety net that protects you if you can no longer pay your mortgage due to circumstances like job loss or divorce. In 2026 the NHG limit is 470,000 euros, up from 450,000 euros in 2025, or 498,200 euros if you include energy-saving measures, and it applies to properties on freehold land.
NHG itself is not tied to one specific repayment type, but it does affect the overall picture. You can generally finance up to 100 percent of the property value, or 106 percent if part of that is used for energy-saving improvements, and NHG-backed mortgages typically come with a slightly lower interest rate. If your property falls within the NHG limit, it is worth checking whether your preferred repayment structure is still available under NHG conditions before you commit to it.
If your situation is more complex, for example a shorter employment contract, foreign income, or a property above the NHG limit, it often helps to talk it through with someone who compares options across lenders rather than working it out from general rules alone. You can reach out through the contact page to go through your own numbers.
Picking between annuity, linear and interest-only gets more complicated once your income, residency status and moving plans are all part of the equation, and that is where local, expat-focused advice pays for itself.
To talk through which mortgage type fits your situation, reach out at @dekredieter, via www.kredieter.nl, or call 020-5753320.
Yes, but it usually means refinancing rather than a simple adjustment. You would need a new valuation, updated advice, and possibly pay penalty interest if you are still inside a fixed-rate period. It is worth checking the costs upfront, since refinancing only pays off if the savings outweigh the fees involved.
Yes. Since 2013, only annuity and linear mortgages qualify for mortgage interest deduction on new loans. Interest-only mortgages taken out after that date do not, regardless of how the rest of your finances are structured, so the deductible part of your loan depends directly on which repayment form you choose.
No. Lenders differ in which combinations they allow, how they weigh foreign income or a fixed-term contract, and how much of an interest-only portion they accept. Two banks can offer meaningfully different maximum mortgages for the same expat profile, which is why comparing lenders matters as much as comparing mortgage types.
Your mortgage does not automatically change, but leaving early usually means either selling the property, renting it out under conditions set by your lender, or paying off the loan. If you are still inside a fixed-rate period, early repayment can trigger penalty interest, so it is worth planning for that possibility from the start.
