Married expat and buying a home in the Netherlands? Beware of these mortgage loan considerations

Are you a married expat planning to buy a home in the Netherlands? Your marital status may play a significant role in your ability to take a mortgage loan. In this blog, Joep Ertem from Westvaer explains essential considerations for expats when purchasing a home in the Netherlands, especially regarding your marital status and how it impacts your mortgage application.

The home purchase and mortgage application process in the Netherlands

Once you’ve found your dream home, the next step is completing the sales process. To cover all expenses related to the purchase, a mortgage loan is usually applied for. This application process can be cumbersome for certain expats.

Prior to lending you money, the bank will check your personal details, such as the income you generate, your possible other financial obligations and your marital status. This is done to determine whether you would be able to repay the loan.

Why your marital status can impact your mortgage application

Your marital status could be a hurdle when applying for a loan, especially in the context of Dutch property law. It could namely also affect your financial obligations. These obligations could influence your ability to take a mortgage loan. Once your marriage is solemnized in the presence of the authorities in the country in which you marry, a community of property may come into existence. This means that, by law, spouses may share some or all property and bear some or all liabilities together, regardless of the question by whom these were acquired or contracted during or before the marriage. It is, thus, a property regime that comes to be, even though the spouses may not be aware of it. This might affect how a bank views your financial situation when applying for a mortgage.

Tip: To avoid any complications, consider drafting a nuptial agreement before or during your marriage, in which spouses specify whether there is indeed a community of property between them.

Dutch law versus foreign law: how it affects married expats’ mortgages

Quite often, foreign law applies to the marriage between expats residing in the Netherland and their partner. Once the applicable foreign law is ascertained, the next question generally is whether it results in a community of property between the spouses or whether the spouses keep their own private property after marriage celebration. Having drawn up a nuptial agreement may shed some light on these issues. However, Dutch banks may not always be familiar with the legal implications of foreign marriage laws.

Sometimes, having a nuptial agreement isn't the right solution either, as the mortgage bank may request the buyer to produce a declaration made by a Dutch notary in which it is stated what the legal effects of the foreign system of laws are. For this reason, it is essential contact an internationally minded notary to have ascertained what is to be done. This step helps you avoid delays in your mortgage application.

Expert legal advice for expats buying a home in the Netherlands

In conclusion, when applying for a mortgage in the Netherlands, your marital status and the applicable property laws could have a significant impact on your application. Be proactive and consult with an expert who understands both Dutch and international law, to avoid complications in the process.

Contact Westvaer for expert legal advice to guide you through the complexities of buying a home in the Netherlands as a married expat. Joep Ertem and our other colleagues are happy to help you.

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