When taking out a mortgage, you prepare for the big questions: what is the maximum I can borrow, and does this house fit my budget? That makes sense, but there are questions that are just as important yet rarely asked. Questions you will wish you had asked sooner. Independent financial advice helps you discover exactly those blind spots. We have listed a number of forgotten questions here.
On top of your fixed monthly repayments, most mortgages allow you to make extra payments. That sounds like a smart move, but the freedom you have to do so varies significantly by lender.
All banks in the Netherlands allow you to make penalty-free extra repayments of at least 10% of the original principal annually, on top of your regular monthly payments. Many providers allow 15% or even 20%. Some lenders allow unlimited extra repayments, but this usually comes with one important condition: the money must come from your own funds.
There is a distinction here that many people are unaware of:
• Repaying with your own money (savings, inheritance, bonus): allowed without penalty or with generous limits at many banks.
• Repaying with borrowed money: standard penalty-free percentages apply. If you repay more than allowed, you will pay a penalty interest fee.
However, making extra repayments is not always the smartest choice. If you locked in an extremely low interest rate at the time, it might be financially more advantageous to use your savings differently. It is therefore wise to always look at your current interest rate first, preferably together with a financial advisor.
A mortgage quote gives you a clear picture of your monthly payment, but the total cost is broader than just the monthly payment to the bank. Want to know more about your mortgage options? View our page and schedule a no-obligation consultation.
Taking out a mortgage also involves one-off costs: notary fees (on average between €1,200 and €2,500), appraisal costs (on average €750 for existing properties), and mortgage advice fees (€1,995 to €3,995). Depending on your situation, you may or may not pay transfer tax. Together, these costs are known as "costs for the buyer." Do you have sufficient room in your income and the property value? Then you can include them in your mortgage. If not, you pay them from your own funds.
On the other hand, you can also earn money back through the tax refund on your mortgage. This brings us to the next question.
Mortgage interest deduction is a tax benefit where you deduct the interest paid on your mortgage from your taxable income. In 2026, the maximum deduction is 37.56%, equal to the rate of the second tax bracket.
In concrete terms, this means: if you pay €8,000 in mortgage interest annually, the deduction will give you a maximum refund of approximately €3,024. Do you have an income above €78,426, placing you in the highest tax bracket (49.50%)? You can still deduct the interest, but not at that higher rate. The deduction is capped at 37.56%, meaning you receive less benefit than your tax bracket might suggest.
Also, keep in mind that the "eigenwoningforfait" (imputed rental value) affects your final tax refund. This is an amount the Tax and Customs Administration adds to your income because you own a home. The exact effect varies by situation, so the amounts above are an indication. An advisor can calculate what it means for your specific case.
You can apply for your mortgage tax refund yourself via Mijn Belastingdienst. You can choose between two options:
• Annual refund: you report the mortgage interest paid in your annual tax return and receive the amount in a single payment afterwards.
• Monthly refund: through a provisional assessment, you can have the refund deposited into your account each month. This way, you don't have to pay the full amount upfront and you notice the benefit directly in your monthly expenses.
Is your income changing due to a salary increase or another change? Adjust your provisional assessment via the portal to avoid a tax bill at the end of the year.
Important to know: for mortgages taken out after 2013, the condition for mortgage interest deduction is that you repay the loan on an annuity or linear basis within 30 years. Did you take out a mortgage before 2013, such as an interest-only mortgage? Then you are also entitled to mortgage interest deduction under the old rules, without a repayment obligation. You can read about the difference between these two mortgage types below.
This is a choice you make when taking out your mortgage, and it affects your monthly costs for years to come. Yet, many buyers only understand the distinction afterwards.
With an annuity mortgage, you pay the same total amount every month. In the early years, this consists largely of interest; as the term progresses, the repayment portion increases and the interest portion decreases. Your monthly costs remain the same, but your tax benefit decreases over time.
With a linear mortgage, you repay a fixed amount every month. As a result, the interest decreases faster, which means you have higher monthly costs in the early years, but you pay less total interest over the entire term. Moreover, you build up equity in your home more quickly.
Which form suits you best depends on your current and future financial situation. Independent financial advice helps you compare both scenarios side by side.
In most cases, the mortgage interest you pay consists of two parts: a base rate and a risk surcharge. This surcharge is determined by the ratio between your mortgage debt and the value of your home, known as the loan-to-value (LTV) ratio.
Are you borrowing more than 60% of the home's value? Then you generally pay a risk surcharge on top of the base rate. The higher the borrowed percentage relative to the home value, the higher the surcharge. This can range from 0.1% to 1.5%.
What many people don't know is that the risk surcharge is not set in stone forever. If you make extra repayments on your mortgage or if your home increases in value, your LTV may drop, placing you in a lower risk category. This can lead directly to a lower interest rate. Some lenders adjust the risk category automatically every month; with others, you have to request it yourself. Not sure which risk category you are in? It pays to check.
The questions above are not always the first to be addressed in a mortgage consultation, even though they make the difference between a mortgage that only works on paper and one that truly fits your situation.
At Van Loon, we take the time to look at the big picture. No standard advice, but an honest and personal conversation about what is the best choice for you. Our advisors in Breda, The Hague, and Rotterdam are ready to help. Would you rather orient yourself online first? Leave your details via our contact form and we will call you back.
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