Additional Costs When Buying a House in the Netherlands: A Comprehensive Guide
Purchasing a house is a significant milestone, and while it brings excitement and joy, it also entails various financial considerations. Beyond the actual property price, there are several additional costs associated with buying a house in the Netherlands. Understanding these expenses upfront will help you budget effectively and avoid surprises along the way. In this blog post, we will explore the most common additional costs you may encounter when buying a house in the Netherlands.
- Transfer Tax:
One of the primary expenses you will face when buying a house in the Netherlands is the transfer tax, also known as “overdrachtsbelasting.” As of 2021, the standard transfer tax rate is 2% of the purchase price. However, for first-time buyers, there is a temporary exemption where they are not required to pay this tax, provided they meet certain criteria. It is important to note that this exemption applies only to individuals who plan to use the purchased property as their primary residence.
- Valuation of the Property:
Before obtaining a mortgage in the Netherlands, it is common for lenders to require a professional property valuation. This valuation determines the current market value of the property and ensures that the loan amount does not exceed the property’s worth. The cost of a property valuation typically ranges from €750 to €1.000, depending on the size and complexity of the property.
- Technical Inspection (optional):
A technical inspection, or “bouwkundige keuring,” is an optional but highly recommended step to assess the structural condition of the property. A qualified inspector examines the building, identifying any potential defects, maintenance issues, or hidden problems that may require attention. The cost of a technical inspection can vary depending on the size and age of the property but typically falls within the range of €300 to €600.
- Mortgage Advice:
When applying for a mortgage, it is essential to seek professional advice from a mortgage advisor or broker. These experts can assist you in navigating the mortgage market, comparing different lenders, and finding the most suitable mortgage product for your needs. The cost of mortgage advice can vary. At Kamp & Vulhop we offer an all inclusive mortgage and house buying service for a competitive fee of €2.950.
The involvement of a notary is a legal requirement in the Netherlands for property transactions. The notary ensures that the transfer of ownership is properly executed, registers the property in your name, and handles other legal aspects of the transaction. The notary fee is about €1.250.
- Real Estate Agent (optional):
You could buy your home withe the help of a real estate agent, or “makelaar”. The agent assists you in finding suitable properties, negotiating with sellers, and handling paperwork. The fee for a real estate agent can vary and is about €4.500.
- Bank Guarantee (optional):
If you buy a house, you have to deposit 10% of the purchase price as a security deposit. You can do this by either depositing the money with the notary yourself or by providing a bank guarantee. If you opt for a bank guarantee, you will pay approximately 1% of the amount of the security deposit. So if you buy a home of €400.000, the deposit is €40.000 and the costs of the guarantee is €400.
- Costs for National Mortgage Guarantee (optional):
When you purchase a property of €405.000 or less, you can choose to finance it under the National Mortgage Guarantee (NHG). With the NHG, you have a safety net in case you are unable to pay your mortgage due to circumstances or if there is a remaining debt after selling your house. The costs for NHG amount to 0,6% of the mortgage.
Some additional costs when purchasing a house are tax-deductible. This is the case when they relate to the financing of the property. As such, the following costs qualify for tax deductibility: appraisal fees, mortgage advisory fees, National Mortgage Guarantee costs, and mortgage deed fees at the notary.
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