Mortgage glossary

Guidance through the process of buying a home. This covers assessing properties, setting a bidding strategy, negotiating, and support all the way to the transfer of ownership.

An estate agent who represents the buyer's interests when a home is purchased. A buying agent can help with searching, assessing and negotiating, and guides the buyer through the purchase.

The fees for mortgage advice and for arranging the mortgage with a lender. Which services these fees cover is set out in the service document (dienstverleningsdocument).

The amount a life insurance policy can pay out if you end it early. Costs can still be deducted from that amount.

An interest-only mortgage, with no compulsory repayment during the term. You pay interest on the outstanding debt and repay the loan later, for example when you sell, at the end of the term, or from your own money.

A mortgage where your gross monthly payment of interest plus repayment stays the same for as long as the interest rate does not change.

A Dutch law that can provide a benefit to certain surviving dependants, subject to conditions.

The Dutch state pension (AOW). You receive it from the state pension age that applies to you.

Insurance that can pay out an income if you become unable to work. The terms, the waiting period and the size of the payment differ from policy to policy.

Security for the seller in a property sale. The bank guarantees the deposit amount the buyer is required to pay under the purchase agreement.

Once a private buyer has received the purchase agreement signed by both parties, they have 3 days of statutory cooling-off time.

An amount or a cost you are allowed to deduct from your taxable income, subject to conditions.

A fee a lender can charge if you extend a mortgage offer. The conditions and the amount differ from lender to lender.

A tax rule that determines how much of the equity from your previous home affects the interest deduction on your next one.

BKR is the Dutch credit registration agency. It records certain loans and payment histories, and lenders can use that information when they assess a mortgage application.

Making an offer to the seller to buy a home at a certain price and on certain terms.

An early repayment penalty a lender can charge in certain situations when you repay more, or refinance sooner, than your mortgage terms allow free of charge.

The share of your mortgage you can repay each year on top of your regular payments without paying an early repayment penalty.

The one-off NHG guarantee fee for obtaining the Dutch National Mortgage Guarantee (NHG).

Part of your mortgage that the lender holds back as a construction deposit for building or renovation costs.

Interest you can pay the builder on a new-build home for costs already incurred before your mortgage starts.

A structural survey of a property's condition. The report describes any defects and points to watch.

The part of Dutch income tax that covers income from work and from your own home, among other things.

The part of Dutch income tax that covers income from a substantial shareholding.

The part of Dutch income tax that covers certain forms of wealth, such as savings and investments.

The interest rate a lender offers at a given moment. With a dagrente arrangement, the rate on the completion date can apply instead, if it is lower than the rate in the offer and the conditions allow it.

An arrangement where you benefit, subject to conditions, from a lower rate that becomes available between the mortgage offer and completion.

The interest the lender pays you on the amount still sitting in a construction or renovation deposit.

Moving to your next home while you already own one. Home equity, a bridging loan and a temporary period of double housing costs can all play a part.

Money you put in yourself when you buy or finance a home. You can need it for costs that a mortgage cannot fully cover.

A notarial deed recording the transfer of ownership of a property. The deed is registered with the Land Registry (Kadaster).

An amount added to your income from your own home for income tax purposes. It is calculated from the WOZ value and the tax rules that apply to it.

An amount that arises under Dutch tax rules after you sell a home you owned. The eigenwoningreserve can affect your interest deduction when you buy your next property.

The part of your debt that qualifies under tax rules as debt for your own home.

A label showing how energy-efficient a property is. The energy label gives you insight into the home's energy performance.

A right to use land owned by someone else. A periodic payment, the canon, can be due for it.

A forced sale of a property, for example when the owner structurally fails to meet payment obligations.

A mortgage for someone who works internationally, or who lives and works in the Netherlands.

A loan for your home that you borrow in whole or in part from a family member, instead of or alongside a bank loan.

A professional who advises on financial products and choices.

Costs that come with taking out a mortgage, such as advice and arrangement fees, appraisal costs and the notary fees for the mortgage deed.

A statement confirming that your financial position and options have been assessed in advance.

A financing contingency: a clause in the purchase agreement that lets you cancel the purchase, subject to conditions, if you cannot arrange the financing in time.

The party that provides the mortgage loan, for example a bank, an insurer or another mortgage provider.

An informal term for a payment someone receives when their employment ends.

The cost of fully restoring your home to its original state after fire or storm damage, for example, including demolition and building costs.

Where several people take on a debt together, each of them can be liable for the full amount.

A loan secured against a home or other property. You pay interest and repay the loan according to the agreements you make with the lender.

The mortgage deed, the notarial deed that establishes the mortgage right.

The owner of a home or other property who grants the mortgage right to a lender.

The party that receives the mortgage right as security for a loan.

A lender's proposal for a mortgage. It sets out the amount, the interest rate, the mortgage type and the conditions under which the loan can be provided.

The interest you pay on the amount you borrow from the lender.

The mortgage interest deduction, a tax rule that lets you deduct the interest paid on your qualifying home loan from your taxable income, subject to conditions.

Insurance for damage to the contents of your home, such as furniture, clothing and appliances.

A document in which income from a business is assessed and recorded for mortgage purposes.

A yearly summary from your employer or benefits agency showing your income and the payroll tax withheld, among other details.

The nickname for a temporary increase in the gift tax exemption for buying a home. This scheme has ended.

The Dutch Land Registry (Kadaster). It records data on property and property rights.

An older mortgage-linked life insurance policy used to build up capital, under specific statutory conditions, to repay the debt on your own home.

The written purchase agreement in which buyer and seller set out the terms of the sale.

An insurance policy where the premium is paid as a single lump sum rather than periodically.

An indication that certain buying costs are for the buyer's account. For an existing home these are traditionally the transfer tax and the costs of transferring ownership.

A separate component of a mortgage. One mortgage can consist of several loan parts, each with its own interest rate, fixed-rate period or mortgage type.

An older type of mortgage that combines the loan with a life insurance policy.

The deed of transfer, the notarial deed that passes ownership of a property from seller to buyer.

A mortgage where you repay a fixed amount every month. Because the debt keeps shrinking, you also pay less interest over time.

The fee you pay an estate agent for the agreed work when buying or selling a home.

The value an appraiser sets for a property according to the applicable appraisal standards.

The most you can borrow under the applicable mortgage standards and the lender's conditions.

Changes or extras on a new-build home that go beyond the standard specification, such as an extension or additional finishing.

Parts of the standard specification of a new-build home that you choose to leave out.

A pension benefit that can be paid to a partner or other dependant after a death, under the terms of a pension scheme.

The Dutch National Mortgage Guarantee (NHG), a guarantee scheme for mortgages that meet certain conditions.

An arrangement where you only pay for a particular service if the agreed result is achieved.

An independent civil-law notary who draws up official deeds and records legal agreements, and whose involvement is required by law when a home is bought in the Netherlands.

A mortgage for someone whose income comes from their own business.

A municipal property tax paid by property owners, among others.

Clauses in a purchase agreement that allow the contract to be ended in certain circumstances.

Buildings insurance that can cover damage to the property and the parts belonging to it, for example after fire or storm.

A temporary bridging loan that lets you use the home equity you expect from your current property before it is sold.

Transfer tax, due in certain situations when you buy a home or other property.

Refinancing: ending your existing mortgage and replacing it with a new one, either with the same lender or a different one.

Home equity, the positive difference between what a property is worth and the mortgage debt secured on it.

Increasing or restructuring a mortgage to release part of the home equity tied up in your property.

The formal moment when a notarial deed is signed. For a property purchase this usually means the deed of transfer and the mortgage deed.

A statement a temporary employment agency can issue, subject to conditions, about the expected income continuity of an agency worker.

A reserved amount from which insurance premiums are paid under the terms of a financial arrangement.

A mortgage interest rate offered for a specific new-build project.

A period in which you can decide for yourself, within the terms of your mortgage, when a new fixed-rate period starts.

An option to agree a new interest rate with your current lender partway through your fixed-rate period.

The fixed-rate period, the time during which the agreed interest rate on your mortgage does not change.

An estimate of how mortgage interest rates might develop in future.

The residual debt left over after a property is sold, when the sale proceeds are not enough to cover the mortgage debt and any selling costs in full.

A cohabitation agreement in which partners living together can record arrangements about costs, possessions and what happens if they separate or one of them dies.

An older type of mortgage where the loan sits alongside a savings-linked insurance policy or a similar savings arrangement.

A notarial deed that legally divides a building into apartment rights.

The period in which you are preparing for, or working on, buying your first home.

A mortgage for someone buying their first home.

An additional starter loan available in some municipalities to first-time buyers who meet the conditions.

A professional appraisal of a property by an appraiser.

The appraisal report in which an appraiser describes the property, substantiates the value and records the factors relevant to the valuation.

An interest rate used in certain mortgage applications to test whether the payments stay affordable when the chosen fixed-rate period is short.

Another name for the leveringsakte. This notarial deed records the transfer of ownership of the property.

A mortgage interest rate that can change during the term. It is not fixed for a long set period, so it can go up as well as down.

An interest rate that stays the same throughout an agreed fixed-rate period.

A construction deposit intended specifically for renovation costs.

The owners' association that apartment owners automatically belong to. The VvE manages the communal parts of the building.

A mortgage for a property you are going to rent out in whole or in part.

A purchase agreement for a home which, despite the word 'voorlopig' (provisional), is in principle binding once buyer and seller have signed it.

An indication that certain costs of transferring ownership are for the seller's account.

An amount the buyer must pay or guarantee as security under the purchase agreement, often 10% of the purchase price.

An employer's statement with details of your employment and income.

Insurance that can pay out, under certain conditions, to help cover housing costs in the event of unemployment or incapacity for work.

A way of expressing the ratio between income and housing costs.

The value the municipality sets for a property each year under the Dutch property valuation act (Wet waardering onroerende zaken).

Someone who runs a business at their own expense and risk.

The duty of care a financial services provider has to handle the client's interests carefully, and to deliver its services appropriately and responsibly within the applicable rules.