New Act started on 1 December. What is the impact for foreigners?


On 1 December 2016 new Act started which has also impact on mortgages for foreigners. Here is a brief overview:

  • It is possible to finance up to 90% LTV (means 90% of a purchase / evaluation price). The most common is to use 85% mortgage.
  • The limit for a purchase of a building apartment is 80% LTV (!) This might be a very interesting way of financing for investors, because only 20% as a downpayment is needed.
  • For other general rental purposes the limit is set on 60% LTV (if a future rental income is calculated).
  • The maximum early repayment fee after 24 months of a mortgage duration is only 1% from the mortgage amount.
  • Extraordinary payments of 25% from a mortgage per annum is free of charge, so with no penalties.
  • The interest rates are still very competitive below 2% p.a. currently.