How to transfer a mortgage

Article written in collaboration with A&H Finance, an IN Amsterdam partner. 

Retaining a low interest rate

If you currently have a mortgage for a property in the Netherlands and are looking to sell it and buy a new home, you may be able to keep the interest rate of your current mortgage rate. With interest rates on the rise, this can be beneficial to anyone on an older, lower interest rate.  

For example, if you still have eight years left on your old mortgage, you could transfer this to the new property. Because of this, it’s important to always tell your mortgage advisor about your current rate and ask about options to keep that rate.  

Retaining your current interest rate could even increase your options in the search for your new home, as you might be eligible for a higher mortgage – particularly if you have a long-term fixed mortgage rate.  

What are the conditions?

With most lenders, retaining your current interest rate is simple and most buyers are eligible. If you have an existing mortgage with a lower interest rate, the lender will investigate if you can transfer the current amount and remaining mortgage period to the new contract. One rule is that if your current property falls under the National Mortgage Guarantee scheme (Nationaal Hypotheek Garantie, NHG) other rules can apply. 

When transferring your mortgage, you’re not limited to choosing properties of the same value as your current one. Say you are buying a bigger home and need to borrow an additional amount. For example, you currently have a mortgage of €250,000 with an interest rate of 2%, which runs until 2030. You are buying a home for €500,000, and the total amount you need to borrow is €350,000. In this case, you could use the 2% interest rate on the €250,000 until 2030, and you would need to negotiate a new fixed interest rate for the remaining €100,000.  

Keeping the current rate vs securing a new one

Although keeping your current interest rate is beneficial in many cases, it may be worth looking at negotiating a new contract now if you only have a low amount left to pay off or a short period on your fixed rate. For example, if you have a mortgage for just €50,000 at a rate of 2% and you need to borrow an additional €750,000, it may be more interesting to look at the best rate that’s currently available for the total mortgage. Similarly, if you only have one or two years to go on your fixed rate, it might make more sense to secure a new fixed interest rate now rather than waiting.  

Support with mortgage negotiations

If you need advice about your current and new mortgage, the advisors at A&H Finance are happy to help. If you are looking to buy a new property, they first create an overview of the options with your current and new lenders and provide estimates. Part of A&H’s financial advice is comparing options for keeping the existing interest with options for renewing the contract.  

This article was published in partnership with A&H Finance. If you are looking to transfer your current mortgage rate to a new property, or need general advice about a mortgage, visit their website for more information or give them a call.