Buying your first home is exciting, but also comes with many decisions — especially when choosing the right mortgage type.
In the Netherlands, the two most common mortgage types are annuity and linear. With an annuity mortgage, your monthly payment stays the same, but the ratio of interest to repayment changes. With a linear mortgage, your monthly costs decrease over time because you repay a fixed amount of the loan each month.
Both types have pros and cons. Annuity offers predictability early on, while linear can save you more interest in the long run.
Besides choosing a mortgage, you'll also need to arrange a down payment (usually 10% of the purchase price). You can either transfer this amount or use a "bank guarantee" (waarborgsomgarantie), which typically costs about 1% of the guaranteed amount.
Other essentials include: understanding your buyer costs (like notary fees, transfer tax), reviewing the technical inspection report (bouwkundige keuring), and arranging a valuation (taxatie) for the mortgage application.
Take your time to compare lenders and don't hesitate to get advice from a mortgage advisor, especially as a first-time buyer.
