“Everything I overbid must come from my savings”
At Viisi, we like to be clear about what’s involved in taking out a mortgage. In this section, we address common misunderstandings and also highlight some unique facts. This way, you’ll know what to expect and can distinguish facts from fiction.
Do you qualify for a mortgage in The Netherlands?
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Find out if you are qualified“Everything I overbid must come from my savings”
Fact or fiction?
In today’s Dutch housing market, demand continues to outpace supply in many areas. As a result, buyers often place offers above the asking price to gain a competitive edge. But here’s the catch: any amount you overbid typically cannot be included in your mortgage. This makes it a FACT that every euro you overbid must usually be paid out of pocket, although some exceptions apply.
The appraised value is what counts
Since 2018, Dutch mortgage regulations have allowed mortgages of no more than the property’s appraised value. It is not the purchase price that counts. That means if your offer has been higher than the valuation, you’ll need to cover the difference yourself, using savings or equity from your previous home.
Lenders typically base the maximum mortgage on the lower of two figures: the purchase price or the appraisal value. The exact method depends on the lender.
Know your budget before you make an offer
Before making any offer, it is essential to know exactly how much you can afford. Your Viisi advisor can help determine how much of your savings (or equity) you’ll need.
For example, if you want to bid €470,000 on a home appraised at €450,000, you’ll need to pay the €20,000 difference yourself. On top of that, you’ll need to pay the closing costs, which are also not covered by your mortgage.
Calculation example
Property price: €470,000
Appraised value: €450,000
Maximum mortgage: €450,000
Amount above appraised value: €20,000
Estimated buyer’s costs: €16,000
Total savings required: €36,000
Planning a renovation? Your mortgage may be based on the estimated future value of the property after the renovation is complete. Usually, you’ll still need to fund part of the renovation from savings.
Make a plan before placing a bid
Tip: With an Offer with Certainty, you can place an offer without a financing condition, thereby avoiding the usual financial risk. The more insight you have into your mortgage options, the more confidently you can determine your bidding limit. If you know how far you’re willing and able to go, you’ll be better positioned to make a competitive and secure offer.
Your Viisi advisor can also explain the risks and benefits of bidding without financial conditions. It can be attractive, but it comes with risks.
Overbidding is the norm in the Dutch housing market
Due to limited supply and persistent demand, overbidding is common in the Netherlands. According to data from NVM (the Dutch Association of Real Estate Agents), 71% of homes sold in Q4 2024 were purchased above asking price, with buyers paying an average of 4.9% more than the listed price.
Keep in mind: Regional differences are significant. A local buyer’s agent or tools like Funda, the Kadaster, Walter Living, or SlimBieden can help you research overbidding trends in specific neighborhoods. Energy-efficient upgrades can increase your mortgage capacity.
Planning to make the home more sustainable? You may be eligible to borrow up to 106% of the home’s value, provided the extra funds above 100% of the current market value are used for energy-efficiency improvements.
Also keep in mind: A better energy label can qualify you for a higher mortgage limit up to €50,000 extra for a net-zero energy home. Why? Energy-efficient homes have lower utility bills, so that in theory, more can be spent on a (higher) mortgage. Even if the house has a low energy label, you may still qualify to borrow extra money to upgrade the energy efficiency.
Do: Factor in a higher contribution out of your savings when offering above the asking price. The savings (or equity) should cover the difference between the market value and your offer, as well as the other costs of buying and financing the property. Check for transfer tax exemptions: buyers under 35 may be exempt from tax under certain conditions.
Don’t: Miss critical payment deadlines. You must have access to your savings during the mortgage application and have the funds in the notary’s account before the transfer date. The notary will inform you about the exact amount that should be transferred before you receive your keys and the mortgage duration officially begins.