There are lots of different sorts of mortgage available in the Netherlands, but only two allow you to deduct your mortgage interest payments from tax – the annuity mortgage (annuïteitenhypotheek) and the linear mortgage (lineaire hypotheek).
An annuity mortgage, also known as a repayment mortgage, is the most common type of mortgage in the Netherlands. The lender works out the amount you need to repay each month to clear your mortgage by the end of an agreed term. Your monthly repayment is made up of two parts, an interest payment on the loan and a capital repayment.
The linear mortgage repayment is made up of an interest payment on the loan and capital repayment. With a linear mortgage, you repay the mortgage loan by a fixed amount every month. On top of this, you pay interest, but the interest payments will reduce over time since you are gradually paying off the mortgage loan.
There are several other types of mortgage in the Netherlands, but if you opt for one of these, you will not be entitled to mortgage tax relief. Our financial experts can advise you on whether these are suitable for your personal situation.