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Het verhaal van De Kredieter

When applying for a mortgage, independent contractors, expats and people with highly variable salaries are subject to differentrules from those in regularly paid employment. De Kredieter is a mortgage broker that has been based in the WTC for over 20 years,arranging affordable mortgages with reputable lenders, which include these particular target groups. Ronald Bieger, financial adviserat De Kredieter, explains the special rules and conditions.

INDEPENDENT CONTRACTORS

According to Ronald, many independent contractorswork under the misconception that they don't qualifyfor a mortgage, when in fact a growing number oflenders do cater for this clientele. 'Even with the hugeincrease of independent contractors in recent years,especially in Amsterdam, the banking sector hashardly changed', Ronald says. 'Lenders have jumpedin to fill the gap. Business owners who are able tocome up with figures for a full financial year and goodearnings have an excellent chance of being approvedfor a mortgage, and we can help. The more businessfigures to substantiate an applicant's request wereceive, the better. A client's own accountant orbookkeeper can also assist with that. Please notethat not all contractors can offer this service.'

VARIABLE INCOME

People in paid employment whose salary fluctuatessignificantly are also assessed differently bymortgage lenders. 'Banks are reluctant to overfinanceclients, so they have to establish whetherthat variable income is a structural occurrence',Ronald continues. 'This mostly concerns an incomeconsisting of earned bonuses and commissions.Bonuses depend on the volume of business;commissions depend on personal performance.Commissions can always be stated on the mortgageapplication, whereas bonuses are averaged over themost recent three years. So that's a key difference.'

EXPATS

De Kredieter receives a large number of referralsthrough the Expat Center and Expat Help, both ofwhich assist expats with finding housing, amongother things. From experience, Ronald knows that'After a year or thereabouts, most expats want toswitch from renting to buying a house. The rent isoften higher than the mortgage costs, because ofthe low interest rates at the moment. That's wherewe come in. Estate agents also refer lots of expats tous. The rules for expats are different as well. Becausethey pay lower income taxes in the Netherlands,they can afford a larger down payment, whichmakes them an interesting target group for lenders.On the other hand, they've also built up less statepension in the Netherlands, so that has to befactored into the calculation as well. Procuring loansfor expats from outside the EU tends to be trickier.They often have to invest a greater amount of theirown money.'

NEW RULES

From 2018, mortgage lenders will be subject tonew rules. 'In the past, mortgages also covered theclosing costs for the buyer, which include real estatetransfer tax and notary fees, but that's about tochange ', Ronald explains. 'As from next year, loanswill be capped at 100% of the purchase price. Theonly exception to this rule is the remodelling workthat adds value to the home.'

DE KREDIETER

WTC Central Hallnext to tower AStrawinskylaan 171077 XW Amsterdam+31 (0)20 - 575 33 20info@kredieter.nlwww.kredieter.nl