Mortgage Types Compared — Netherlands 2026

Choosing the Right Mortgage in Netherlands

Selecting the right mortgage type is one of the most important financial decisions in the buying process. The wrong choice can cost you tens of thousands over the life of the loan. This guide explains every mortgage type available in Netherlands and helps you choose.

Types of Mortgages Available

Dutch mortgages have evolved significantly. Annuïteitenhypotheek (annuity mortgage) has fixed total payments with a gradually increasing principal repayment component — the standard product for interest deductibility. Lineaire hypotheek (linear mortgage) has equal principal payments with decreasing interest — higher initial payments but lower total cost. Aflossingsvrij (interest-only) is available for up to 50% of the property value but does not qualify for interest deduction on the non-repaying portion. Only annuity and linear mortgages qualify for hypotheekrenteaftrek (mortgage interest tax deduction)

Head-to-Head Comparison

Annuity is the most popular — consistent payments and full interest deductibility. Linear costs less overall but starts with higher payments. A 50/50 split (half annuity, half interest-only) is common for those wanting lower payments, though the interest-only portion is not tax-deductible. NHG-backed mortgages get 0.3-0.6% rate discounts regardless of type

Use our mortgage calculator to model different rate scenarios and see how each product type affects your monthly repayments and total interest paid.

Which Type Is Right for You?

Your ideal mortgage type depends on your risk tolerance, financial stability, and market outlook.

Choose fixed rate if you value payment certainty, are on a tight budget with little room for payment increases, or believe rates will rise. Choose variable rate if you can absorb payment increases, want the lowest possible initial cost, or believe rates will stay stable or fall.

Consider your loan term carefully. Shorter terms mean higher monthly payments but dramatically lower total interest. Our mortgage guide provides a detailed analysis of how term length affects total cost.

Expert Tips for Netherlands

Get NHG if your mortgage is within the limit (€435,000) — the 0.3-0.6% rate discount pays for the 0.6% guarantee cost within 1-2 years, plus you get residual debt protection. A better energy label qualifies you for more borrowing under Nibud norms. At each rentevaste periode (fixed-rate period) renewal, always compare other lenders — your bank’s retention offer is rarely the best

Refinancing Between Types

If you chose the wrong type, or if market conditions change, refinancing is always an option. Read our refinancing guide for a step-by-step walkthrough of switching products or lenders.

Next Steps

Use our mortgage calculator to compare scenarios, read our first home buyer guide if you are a new buyer, or browse Netherlands FAQs for quick answers.