30% ruling and your mortgage
by Henk Jansen
Many expats make use of the 30% ruling, a special financial arrangement which allows them, in effect, to receive 30% of their salary tax free. Expats with the 30% ruling have a higher net income – so what impact does this have on their ability to get a mortgage?
Mortgage providers in the Netherlands look at gross rather than net income when deciding how much potential home-owners are able to borrow. This means expats with the 30% ruling don’t have any advantage over other people when it comes to requesting a mortgage.
There are, however, three banks that are prepared to give expats a higher mortgage than the mortgage sector code of conduct technically allows. This extra amount is supposed to be paid off during the period that the 30% ruling applies to the home-owner.
Let me be quite clear. Expat Mortgages, as the biggest Dutch independent mortgage advisor for expats, does not support this method of boosting the size of a loan in any way.