- Make a bid
- If bid is won -> arrange financial clause in the bid where the deal will continue if the mortgage is approved.
- Ask an appraisal report (appraissalreport) (it should be an independent report), this person will calculate the market value, and the bank can provide up to that value. The difference from what I bid will have to be payed from my pocket. www.maatwerk.nl
- If mortgage not approved -> provide official letter from the mortgage provider to the notary and seller
- If mortgage approved continue with the buying
- Set delivery date
- If delivery date after 2021, the seller pays the property transfer tax (2%)
Optional: get a broker (which is usually an appreciator and can estimate the value of the property)
Company: WeLocate
Happens the day I sign the legal papers with the notary.
Papers: transfer deed and mortgage deed.
- 0.2% discount in the interest rate because I'm ABN customer
- 0.1% discount because I'm KPN employee
total discount : 0.3%
- 0.15% sustainability discount when energy label is A. Cannot be used with KPN discount
total discount : 0.35%
When property value is less than 310k (2020) or 325k (2021). It's a guarantee in the Netherlands, they will assist out if something happens.
It gives the lowest interest rate vs another mortgage.
It has a pay once fee, 0.7% of the mortgage allowance. Which is tax deductible.
full ownership: owner of the land
lease ground from the municipality: monthly or annual contribution, usually apartments. It can be paid for a long period (till 2050), but the contribution is renegotiated after that, and it depends on the value of the property at that time.
When you have an apartment is mandatory to pay to the group of owners VVE, they take care of maintenance and collective insurance. It is a monthly payment.
For a house you must get a home insurance and take care of maintenance.
- notary is involve in this process
- average cost of notary 1500
- hire a translator in the delivery date.
- 750 EUR transfer deed + 750 EUR mortgage deed
+ 2% property transfer tax payed by buyer now (2020), next year (2021) it changes to the seller.
In order to avoid paying property transfer tax, search now, but set delivery date to 2021.
Some numbers, don't recall what is what:
- 1650 EUR
- 750 EUR
- 950 EUR
It is optional.
Security of unforeseen costs. Condition of the property, need some pending work, list of all maintenance
You can ask to the bank extra funds for renovation: make a maintenance for myself.
Like change toilet for 10k, bathroom 10k, etc.
The bank can finance 100% value after renovation.
Or 106% of the market value for renovation if it is for energy improvements.
For a 300k house:
- ~14.000 worst case scenario
- ~ 8.000 best case scenario (with new law on 2021, where 6k less because no 2% property transfer tax)
You'll have to take into consideration other taxes, like sewer taxes which are not included -> approx some extra hundred EUR.
The interest rate of the mortgage is renegotiated after 10 or 20 years. It depends on your choice. If you set for 10 years, you'll pay less interest rate. This is useful if you plan to sell before the 10 years have passed, but if not, you may end up paying more after renegotiation. This happens for both linear and annuities.
Up to 10% per year you can pay as additional repayment. This is useful when renegotiating the mortgage after 10 or 20 years.
Every month you pay the same (until renegotiation of the interest).
But at the beginning, a higher percentage is used to pay the interest rate from that amount. So you have less assets.
You start paying more monthly (~10% more than annuities), but you pay less over the years (~10% less than annuities at the end).
The difference, is that from the total monthly fee, a flat amount goes to paying the house, this means you build more assets.
This may be useful when selling, would generate more profit. Over 10 years you own more of the house with linear.
- Bank fees are tax deductible (tax deduction applied to ~4k of a 300k house)
- Monthly payment to the bank is tax deductible at the end of the year or monthly, depending on the arrangements of the mortgage
The house can be sold.
The new buyer pays to the notary, and the notary pays your mortgage and you get the difference.
If you buy and sell at the same price, you would receive the amount you invested in the house (not sure if interest rate is included, so the type of mortgage is important here).
If you sell for a higher price, you'd get what you invested in the house + the difference.
Seems like a better investment over paying rent. Because a part of the mortgage could be for you when selling.
If the house is sold to buy a new house, the money earned must be invested in the new house.
Not allowed.
The whole house or a room cannot be rented, because the tenant has a lot of rights, that means that if the tenant decides to stay when you are selling, you'd have to transfer the house with a tenant in it.
The bank can allow renting a house if you employer sends you abroad, but up to 3 years maximum, and it has to be approved by the bank.
Take 80% of market value of the house, useful so parents can sell in case of a problem. 3-4 EUR per month