{"id":8945,"date":"2021-05-06T13:31:24","date_gmt":"2021-05-06T11:31:24","guid":{"rendered":"http:\/\/www.niltube.com\/?p=8945"},"modified":"2021-11-06T20:05:23","modified_gmt":"2021-11-06T18:05:23","slug":"mortgage-checklist-when-buying-a-house-in-the-hague","status":"publish","type":"post","link":"https:\/\/www.starkrealestate.nl\/nl\/mortgage-checklist-when-buying-a-house-in-the-hague\/","title":{"rendered":"Mortgage Checklist when Buying a House in The Hague"},"content":{"rendered":"
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You decided that you are buying a house in The Hague. And you are looking at the financial side of the most expensive you will do in your life. Are you looking like the proverbial wide-eyed deer into the headlights when it comes to your financial perspective? Becoming an eligible buyer begins with exploring the financial world in the Netherlands. <\/p>\n\n\n\n

Where do you start when you are making a long-term commitment? You definitely want to be as informed as possible. We are looking at a bond which might last as long as 30 years after all. Be prepared when you are going out to shop for a mortgage, that is why we have prepared a very handy mortgage checklist you will need when buying a house in The Hague. <\/p>\n\n\n\n

But let\u2019s start first with a brief summary of relevant mortgage types! <\/p>\n\n\n\n

Mortgage with straight line redemption<\/strong><\/p>\n\n\n\n

The most important characteristic of this mortgage is that the loan is repaid yearly in equal installments (i.e. straight line). As a result of the repayments, the amount of interest payable diminishes every year. Since the interest expenditure decreases steadily, this mortgage is best suited for borrowers who cannot fully benefit from the tax relief on the interest payments.<\/p>\n\n\n\n

Annuity mortgage<\/strong><\/p>\n\n\n\n

The chief characteristic of an annuity mortgage is that the yearly total of redemption and interest payments remains the same throughout its duration. Although the total remains the same, the mix of interest and redemption of course changes over the years. Owing to this balance between interest and redemption, the redemption is not on a straight-line basis.<\/p>\n\n\n\n

In the first years, the amount paid by the borrower consists mainly of interest payments. Hence there is a large tax relief in the initial years. Consequently, an annuity mortgage is ideal for people who wish to have a large tax relief in the early years and expect to have a sufficiently high income in later years to be able to make the redemption payments that do not qualify for tax relief.<\/p>\n\n\n\n

Now that you know of the 2 most chosen mortgage types mostly posed question we always seem to get is \u201cBut what is really important when to choose a mortgage and what should we pay attention to<\/em>?\u201d. <\/p>\n\n\n\n

That is why we have put together a very handy checklist of critical points that you should consider when choosing your mortgage. <\/p>\n\n\n\n

What to Pay attention to when you receive your mortgage offer?<\/strong><\/p>\n\n\n\n

\u2022 How long is the validity period of the quotation?<\/p>\n\n\n\n

\u2022 How long can you extend the quotation at most? And how much do you have to pay for this extension (readiness fee)?<\/p>\n\n\n\n

\u2022 How much is the compensation on your construction or renovation deposit?<\/p>\n\n\n\n

What else should you pay attention to regarding the mortgage offer?<\/strong><\/p>\n\n\n\n

\u2022 What percentage can you repay annually without penalty?<\/p>\n\n\n\n

\u2022 Can you extend the fixed-rate period?<\/p>\n\n\n\n

\u2022 Can you take your fixed-rate period with you when moving?<\/p>\n\n\n\n

\u2022 Is it possible to withdraw a previously redeemed portion? If so, what are the costs?<\/p>\n\n\n\n

Are you looking for a new mortgage? <\/p>\n\n\n\n

In that case, pay attention to the mortgage type if you want to be eligible for mortgage interest relief.<\/p>\n\n\n\n

Are you refinancing your pre-2013 mortgage or is your fixed-rate period on this mortgage ending?<\/strong> <\/p>\n\n\n\n

Then consider the conditions that apply to be able to make use of the mortgage interest deduction.<\/p>\n\n\n\n

What major points should you pay attention to regarding the insurance in your mortgage?<\/strong><\/p>\n\n\n\n

\u2022 What are the monthly premiums for risk insurance and savings, life or investment insurance?<\/p>\n\n\n\n

\u2022 Can the monthly premium be increased or decreased in the meantime?<\/p>\n\n\n\n

\u2022 What percentage of the monthly premium is actually used for value accrual (investment percentage) and what part is costs?<\/p>\n\n\n\n

\u2022 Is the promised return gross or net?<\/p>\n\n\n\n

\u2022 What risk profile does the policy have?<\/p>\n\n\n\n

How much are the purchase costs?<\/strong><\/p>\n\n\n\n

Generally, the costs of purchasing a house in The Netherlands amount to approximately between 6 to 7% of the purchase price of your new property, apart from your 10% down payment for the home. <\/p>\n\n\n\n

Additional costs include <\/strong><\/em><\/p>\n\n\n\n

\u00b7 2% transfer taxes;<\/p>\n\n\n\n

\u00b7 Costs for registering the property in your name and having that information filed in the usual registers, done by a civil law notary;<\/p>\n\n\n\n

\u00b7 Notary fee;<\/p>\n\n\n\n

\u00b7 Ground book registration fee;<\/p>\n\n\n\n

\u00b7 Ground book investigation fee;<\/p>\n\n\n\n

\u00b7 Translator \/ Interpreter;<\/p>\n\n\n\n

\u00b7 Buyer\u2019s agent costs;<\/p>\n\n\n\n

\u00b7 Mortgage advisor fee;<\/p>\n\n\n\n

\u00b7 National Mortgage Guarantee costs (if applicable);<\/p>\n\n\n\n

\u00b7 Appraisal costs for an independent financial report;<\/p>\n\n\n\n

\u00b7 Structural surveyor (if applicable);<\/p>\n\n\n\n

\u00b7 Bank guarantee cost (if applicable);<\/p>\n\n\n\n

In conclusion, a house at \u20ac 500.000 will cost you an additional \u20ac 30.000 to \u20ac 35.000, on top of the purchase price. <\/p>\n\n\n\n

We know that the mortgage language can come across as a lot of jibber jabber that is hard to conquer, especially the first time buying a house, we can understand that. All the documents are in Dutch, but no worries about that, we do have a solution for you. We will provide you with a translation of the deed of transfer. <\/p>\n\n\n\n

Also, we will arrange a financial appraiser and a structural surveyor to make sure that your new home is in mint condition. On top of that you do need a translator \/ interpreter at the actual deed at the Notary, that is a requirement of the Dutch law. And we have a long list of translators \/ interpreters we can hire on your behalf. <\/p>\n\n\n\n

Remember that the selling agent does not have your best interest at heart, because he or she are representing the seller. We, at Stark Real Estate are experts, and can offer you the service of a \u201cbuyer\u2019s agent\u201d whereby we will represent your interest and your interest only. That means that are advising you all the way through the purchase activity including negotiating the price and conditions for you. We do everything for you concerning the purchase of your new property, even help you with your utilities and in the end of the transaction, we will gladly walk you over the threshold of your new home.<\/p>\n\n\n\n

Contact us, if you do need more information, insights or explanation about your mortgage or for that matter the purchase path. Or if you want a second or even third opinion.  We are here to help you! <\/p>\n\n\n\n

Karola Gr\u00fcnenbaum, director Stark Real Estate<\/p>\n\n\n\n

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