- Blog
Anyone exploring the mortgage market quickly notices that certainty upfront is becoming increasingly important.
Traditionally in the Netherlands, the mortgage process works in such a way that you first find a property and make an offer on it. Only once that offer has been accepted does the formal mortgage process usually begin and the financing is formally applied for.
Because many buyers want to know their financial position in advance, almost all mortgage advisers and lenders offer some form of preliminary assessment. In most cases, however, this is only an indication: an estimate of what you might be able to borrow, without any official assessment or binding status.
An official upfront assessment in the Netherlands is only possible through Mortgage2Go.
Instead of a general calculation, your financial situation is genuinely assessed here in accordance with the acceptance framework that is normally only applied after a purchase. This provides substantially more certainty before you make an offer.
In this article, you will learn how upfront mortgage assessments work, what the difference is between an indicative check and an official assessment, and why a full upfront approval – as it exists in some other countries – is generally not possible in the Netherlands.
What is a pre-checked mortgage?
A pre-checked mortgage, offered by Mortgage2Go, is a financial feasibility check of your mortgage options before you start house hunting.
During the check, the following is reviewed:
- Your and your partner’s income (for example, salaried employment or self-employed income).
- Known financial obligations.
- Current lending standards.
After completing the check, you receive a certificate stating the maximum mortgage amount. It is intended to give you certainty in advance that you can afford a home.
Once you have a winning offer on a property, you can finalise the mortgage in approximately two working days using the purchase agreement and the valuation report.
What is a pre-approved mortgage?
A pre-approved mortgage is a much more advanced process in countries such as the US and the UK. The lender carries out a comprehensive assessment of your financial situation, including income, creditworthiness and assets.
Based on this, a conditional approval is issued:
- A specific maximum loan amount.
- Often with an indicative interest rate.
- Intended as a strong signal to sellers.
It is important to note that this approval always remains conditional. The property itself must still meet the acceptance criteria at a later stage.
What are the key differences?
The difference between the two mainly lies in depth and status. A pre-checked mortgage is only a financial check, while a pre-approved mortgage is internationally regarded as a conditional approval. This distinction is crucial in the Netherlands.
Why upfront approval is not possible in the Netherlands
In the Netherlands, a true pre-approved mortgage cannot exist for a number of reasons.
First of all, a lender may only make a mortgage offer once the specific property is known. The valuation, the type of property and the loan-to-value ratio play a decisive role.
In addition, the Netherlands applies a maximum loan-to-value of 100 percent. Without a valuation, it is not possible to determine which amount is responsible and permitted.
What is possible in the Netherlands?
What comes closest in the Netherlands is an extensive pre-checked mortgage, offered by Mortgage2Go, or a financing statement. This provides more certainty than a simple calculation tool and comes closest to a full approval.
Mortgage2Go
Are you planning to buy your first home? And would you like certainty about the maximum amount you can borrow for a mortgage and have the financing virtually arranged before you start house hunting?
Then Mortgage2Go offers the solution.
Start your application for a pre-checked mortgage and see whether you qualify.
