How Energy Labels Can Increase Your Buying Power
New Mortgage Rules: Boost Your Borrowing Power with Energy Labels
Starting in 2024, the mortgage landscape in the Netherlands is shifting, offering homebuyers more flexibility based on their property’s energy efficiency. Traditionally, you could borrow up to 100% of your property’s value, depending on your income, home value, and mortgage interest rates. However, new government guidelines allow you to borrow even more if your home is energy-efficient. These changes, recommended by the National Institute for Family Finance Information (Nibud), are set to impact anyone looking to buy or refinance a home significantly.
How Energy Labels Impact Your Mortgage
Starting in 2024, your maximum mortgage amount will factor in your home's energy label, together with your income, property value, and interest rate. This update ensures that your mortgage matches your financial capacity by considering potential savings on energy bills from a more efficient home.
For example, with an energy label C or D, you might qualify for an additional €5,000 on your mortgage. However, if your home boasts an A++++ rating and has an energy performance guarantee for at least ten years, your borrowing capacity could increase by up to €50,000. This change incentivizes homeowners to invest in energy-saving upgrades, as it directly influences their mortgage potential.
The Importance of Energy Labels
Energy labels rank homes based on their energy efficiency, from A (most efficient) to G (least efficient). Homes with better energy labels are more attractive to buyers due to lower heating and cooling costs. With the new mortgage rules, a better energy label means you can get a larger mortgage.
In Amsterdam, energy label A is already widespread, with over 127,000 homes achieving this rating. However, many historic homes, such as those in the Canal Belt, often have lower ratings like label G due to their age and architectural limitations. As a result, buyer preferences may shift, making energy efficiency a key factor in determining a home’s value and appeal.
Mortgage Interest Rates and Borrowing Percentages
This year, many lenders have lowered their interest rates, making it easier for homebuyers. About one-third of these rate cuts apply to short-term and long-term fixed rates, usually dropping by 0.05% to 0.10%. When you combine these lower rates with the chance to borrow more if your home has a better energy label, now could be a great time to buy or refinance a home.
Buying a Home in Amsterdam? Consider Looking Outside the Ring
If you’re looking to buy a home in Amsterdam and need to maximize your mortgage capacity, we advise you to explore areas outside the A10 Ring Road. Homes within the ring are highly desirable but are often older and less energy-efficient, making it harder to achieve a high-energy label. By expanding your search to areas outside the ring, you may find newer or more energy-efficient properties, allowing you to qualify for a larger mortgage under the new rules. This strategy could be crucial in securing the home you want with the financial flexibility you need.
What This Means for You
If you’re planning to buy a home or refinance your mortgage, it’s essential to consider your property’s energy label. While energy-efficient upgrades might require an initial investment, they can significantly increase your borrowing capacity and reduce your long-term expenses.
Conclusion
The new mortgage rules in the Netherlands strongly emphasise energy efficiency, making it a key factor in home buying. Starting in 2024, homes with better energy labels will enable buyers to borrow more, increasing the appeal of energy-efficient properties. If you’re targeting the Amsterdam market, expanding your search beyond the A10 Ring Road could help you find a home that aligns with these new guidelines, maximizing your borrowing power and opening up more opportunities in your home search.
By understanding and taking advantage of these changes, you will make smart decisions that improve your quality of life and financial stability. If you need help finding a mortgage advisor, real estate agent, or energy label expert, email us at monique@howtobuya.house. We’ll connect you with a trusted professional to assist you.
Understanding Identity Verification When Buying a Home in the Netherlands
Buying a home is an exciting process, and as you navigate the Dutch real estate market, it’s essential to understand the importance of identity verification. This guide, with insights from Merel Drechsel, General Manager at Handelzeker, simplifies the legal aspects of ID verification to help you on your home-buying journey.
Handelzeker is a leading company in the Netherlands, specializing in risk and compliance investigations and ID verification, supporting professionals like real estate agents. When purchasing a home, especially with significant financial transactions, Dutch law under the *Wet ter voorkoming van Witwassen en Financieren van Terrorisme* (WWFT) requires strict monitoring to prevent money laundering and ensure a secure process.
Why Identity Verification Matters
Identity verification plays a critical role in the home-buying process by ensuring the following:
- Preventing money laundering: Verifying your identity helps ensure that funds used in your home purchase are clean and legal.
- Stopping terrorist financing: Confirming your identity prevents funds from being misused for terrorist activities.
- Maintaining legal compliance: Real estate agents follow the law to maintain the integrity of the industry, ensuring a trustworthy buying experience.
The Role of Identity Verification
As part of Customer Due Diligence (CDD), your agent will verify your ID, typically with your passport. This must be done in person. They may request a copy, but according to Dutch law, they are not required to keep it. Agents can simply record the necessary details without storing sensitive information like your Citizen Service Number (BSN), passport photo, or MRZ code.
Handling Personal Documents Safely
Sharing personal documents between agents is discouraged due to data security risks. Email and messaging apps like WhatsApp are vulnerable to breaches. To comply with GDPR and WWFT, avoid exchanging ID copies. Your agent can provide essential personal details without sharing sensitive documents, protecting your information throughout the process.
Payment Transparency
Real estate agents are required to ask how you plan to pay for your home. While they need to know the source of your funds, you don’t need to provide every financial detail or submit documents to the seller’s agent. The notary handles a full investigation, ensuring the transaction is legal and secure.
If any suspicious activity arises, it must be reported to the Financial Intelligence Unit (FIU), ensuring full transparency in your home purchase.
Conclusion
As you begin your home-buying adventure, identity verification under the Dutch WWFT safeguards both your security and the real estate market. By verifying your identity, real estate agents help create a safe, reliable environment, making your experience in purchasing a home smooth and secure.
For any questions, especially if you have a unique profession or come from a sanctioned country, feel free to contact Merel Drechsel for expert guidance on the process.
Interview | Anja Kroon, Interior Designer
Today, we have the pleasure of sitting down with the immensely talented Anja Kroon, a renowned interior designer with a wealth of international experience and a background in building and architecture.
Anja, your journey as an interior designer with a background in building and architecture is truly fascinating. Could you share with us how your passion for design and architecture first began?
A Certainly! My fascination with design and architecture ignited during my childhood, where I found myself captivated by the harmony between aesthetics and functionality in the spaces around me. As I grew older, my passion only intensified, leading me to pursue formal education in architecture and design.
That's truly inspiring! How has your architectural background influenced your approach to interior design?
My background in architecture has a big influence on my interior design approach. I see spaces as a whole, considering both their structure and the interior elements that bring them to life. This helps me create designs that not only look beautiful but also make the space practical and easy to move around in.
How does designing for different cultures and regions influence your creative process on international projects?
Designing for different cultures and regions is a wonderful journey. Every culture has its own special style, traditions, and way of living, which I love incorporating into my designs. I take the time to deeply understand my clients' cultural values and dreams through research and close collaboration. This helps me create spaces that truly connect with them on a meaningful level.
Anja, what do you believe sets your interior design style apart from others in the industry?
I love creating spaces that are both elegant and functional. My design style combines timeless elements with contemporary aesthetics, ensuring that the spaces I create stand the test of time. I believe in crafting designs that not only look beautiful but also cater to the practical needs and lifestyles of my clients.
What would you say is the biggest misconception about hiring an interior designer?
Ah! That is a good question! Hiring an interior designer is often misunderstood as an expensive option, reserved only for large-scale home makeovers. However, interior designers are more than willing to assist with smaller refurbishing or restyling projects like bedrooms, kitchens, and living spaces.
In fact, a significant number of inquiries received by our office are for these smaller-scale projects. Our expertise can make a substantial difference in enhancing the appeal and functionality of your home, no matter its size. From optimizing space to suggesting creative storage solutions and introducing colour schemes, we bring fresh ideas and innovative solutions to transform any space.
Moreover, we have access to several skilled building teams and therefore we can often complete projects more efficiently than traditional builders.
Anja, what advice would you give to aspiring interior designers aiming to make a mark in the industry?
For all aspiring interior designers, my advice is to stay curious and keep learning. The design industry is always changing, so staying up-to-date with trends, materials, and technologies is crucial. Find inspiration from different sources and trust your instincts. Remember, creating meaningful spaces requires passion, perseverance, and a deep understanding of your clients' needs. Keep pushing forward and believe in yourself!
Thank you, Anja, for sharing your valuable insights with us! Your words have clarified that interior advice is beneficial for everyone, not just the wealthy. We appreciate your time and expertise in answering our visitors' questions.
We're excited to have you as our special guest at the upcoming Boutique Event in Marriott Hotel. See you soon!
Certified Purchase Agents: A must for Expats buying in The Netherlands
Buying a house in a foreign country can be an exciting yet daunting experience, especially for expats. The Netherlands, known for its beautiful landscapes and vibrant cities, attracts many expats looking to settle down. However, navigating the Dutch real estate market without professional guidance can be risky. In this article, we will explore why it is crucial for expats to never buy a house in the Netherlands without the help of a certified purchase agent.
What is the role of a buying agent, also known as a "makelaar"?
A good buying agent (makelaar) provides comprehensive guidance throughout the entire process. They help you find properties, accompany you to viewings, ensure both you and the agent have seen a home before buying, handle bidding and due diligence, accompany you to notary appointments, and provide ongoing support. Experienced agents working with expats often offer English translations and have a good command of the English language, making it easier for you to understand home-related information and communicate effectively.
Is "Makelaar" a protected title in the Netherlands?
Anyone can start a real estate agency without qualifications, as it's an unregulated field. However, certified agents have diplomas and knowledge of the home-buying process. It's best to work with a local agent who knows the market, has a diploma, and can keep you safe even after finding a great deal. Not all certified agents are members of a Dutch trade body, as membership is optional.
Safeguarding your interests
Buying agents, or "makelaars," are responsible for negotiating with the seller's real estate agent on your behalf. They provide guidance on your offer and act as your main contact with the seller. Their primary role is to provide information, advice, and address any questions you may have. It is their responsibility to carefully investigate and review all relevant documents to ensure properties are in good condition and have no legal issues. This protects you from unexpected expenses and future legal disputes.
The Myth of Pre-Listings: separating fact from fiction
Real estate agents sometimes have access to properties before they are listed on larger housing websites. However, this early access doesn't always give sellers or buyers an advantage. It's important for sellers to reach a wide audience to get the best price and conditions. Listing properties on bigger housing sites ensures maximum exposure and attracts a diverse range of potential buyers. In the case of higher-priced properties, hidden or pre-market homes are more common. When buying an expensive house, it's essential to work with a certified and experienced agent who has up-to-date knowledge of available market options. Don't be swayed by agents who claim that finding off-market properties is a significant advantage in your home search.
Having said this, sometimes, luck may be on your side ;)
What should I do if I discover major defects after buying a home?
Experienced expat agent, Barry Burgemeester, has written an informative article that sheds light on important considerations before starting your home negotiations. With 19 years of exclusive experience in assisting expats with their home purchases, his insights can be valuable for you. We highly recommend exploring all the news articles available on his website and social media channels.
As How To Buy A House in The Netherlands we strive to make the process of buying a home stress-free and enjoyable. We will continue to publish articles like this to assist you. Take a look at our expat-oriented list, where we recommend companies that we have personally tested and approved as being expat-friendly.
Wishing you a successful and happy house-hunting journey!
HTBAH Team
Interview | David Bellingham Revolutionizing Financial Services for Expats
We are thrilled to present an insightful conversation with David Bellingham, the esteemed CEO of Black Swan Capital, an award-winning independent investment advisory firm. With a steadfast commitment to catering to the specific and unique needs of internationals, Black Swan Capital has garnered recognition for its exceptional investment advice and personalized services. Revolutionizing Financial Services for Expats and International Professionals is one of the topics we discuss.
In this exclusive interview, we delve into David’s wealth of experience and expertise in the financial industry. Join us as he shares valuable insights, market perspectives, and his vision for empowering internationals with tailored investment strategies.
Introduce yourself! Who are you, what industry do you work in and how did you get involved with HTBAH?
Hi there! My name is David Bellingham, and I head up Black Swan Capital for Europe. Having met HTBAH through the industry, I enjoy meeting like-minded business people like Monique and her team who value high-quality service and looking after their clients!
Who are your clients?
Usually, we deal with internationals – people either living outside of their home country. We provide objective financial advice on a fee-for-service basis.
What kinds of service do you deliver yourselves and what expertise do you forward to your partners?
Black Swan’s employees are all internationals themselves! Overseen by Dutch central bank, Black Swan can guarantee the highest standard in Europe and is very proud to be the first firm in the whole of Europe that has a fully independent investment firm license.
Can you take me on your customers’ journey from A-Z?
When we meet someone, we first get to know them and see if it’s fit; will partnering with Black Swan be mutually beneficial? If it’s a match, we sign a client agreement and spend a few weeks making a full advisement report for them. Then, we help them to implement the recommendations or outsource should they need it, and have an ongoing management service for our clients to ensure they are always on track to achieve their goals.
What are your top 3 tips in working with expats to ensure they have a smooth transition from their last country of residence to The Netherlands?
- Know what you want to achieve, we can help them with this if they don’t know yet
- Built-in flexibility
- Get reputable advice
Give us an example of a time you successfully helped a client. What happened? What did you learn from it?
Every client is an example, but for privacy, I cannot divulge certain information. However, the main thing is that we know how to listen to clients and every service is bespoke on a case-by-case basis.
How can your expert advice assist a client moving from overseas to the Netherlands?
Helping them to understand the environment here, as well as understanding the options they have that are in their home countries.
What are some do’s and don’ts for expat clients that you would/wouldn’t recommend in relation to your industry?
Flexibility – the Dutch regulator has a commission ban. You can passport your license around the EU. Be careful – ‘free’ is not often the case, fine print and exit charges are often a problem for people after they’re realized it. Make sure the person you’re talking with is qualified.
What are the benefits of working with you as opposed to another vendor in your industry?
We always ensure our clients are comfortable, we’re qualified, and experienced, and have a judicial obligation to act in our client’s best interest.
How can a potential client get in touch with you?
The best way to contact us is to visit our website or send us an email at info@blackswancapital.eu.
7 Steps to your mortgage
It all starts with a number. Here are 7 steps to get your mortgage done.
Video transcript of 7 Steps to your mortgage
hi are you an expert wanting to buy Dutch property then here are seven easy steps to success step 1 determine your budget find out your gross annual income work out how much you want to spend and schedule a meeting with us it's free of charge step 2 when looking for your perfect property you could either do it yourself on the internet or let us help you by introducing you to an estate agent or Makelaar as they're called here step 3 this is where the fun begins bidding and buying but to be honest this is where your trusty estate agent might well come in useful it's a jungle out there step 4 and this is where we at expat mortgages get very excited it's the mortgage application process we will make sure that everything goes smoothly and don't worry all the paperwork will be in English step 5 once everything has been approved you then have to have a meeting with a notary signed some papers and then the keys are yours and it's time to celebrate wahoo and by the way the drinks are on us step 6 is arranging your taxes for the first two years and free of charge we will happily organize a tax refund for your mortgage related costs and the final step we will reach out to you every year just to make sure that you are okay but if you have any questions in the meantime then just give us a call expat mortgages makes you feel at home.
Do you have any questions? Attend to our events or request a personal session!
Freehold and Leasehold: What is the difference?
Freehold and Leasehold: What is the difference? If you buy a house in Amsterdam not all the land you buy a house on is yours. The choice of property is either freehold (eigen grond) or leasehold (erfpacht). Here I will explain the difference.
We will provide all the information you need in order to buy your dream house. Feel at home while shopping around; we will make sure to have some drinks, snacks and even a nanny service ready for you so you’ll have nothing to worry about and be able to talk with our partners. All the experts you need to meet under one roof. Ask them questions related to your particular situation. Buy better by being better informed.
Barry Burgemeester is a certified real estate agent with 23 years’ working experience. 18 years ago, he made the switch from a predominantly Dutch clientele to an exclusively international one. Helping expats purchase homes has remained his passion and his strength.
Barry has invited a number of friends in the housing sector to help him inform/educate you about buying a house.
Do you want a free session with a real estate agent? Check out available sessions.