“No permanent contract, still a mortgage”
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?
If you are an expat living in the Netherlands and you are considering buying a house, you may be wondering what the possibilities are for a mortgage. Use our ‘Do I qualify for a mortgage?’ tool and find out if you are qualified! No personal information will be asked when completing the tool.
Find out if you are qualifiedFact or fiction: No permanent contract, still eligible for a mortgage. That’s a FACT. Even without a permanent contract, you can secure a mortgage. It does require some knowledge of the rules, but we’re happy to guide you through the possibilities. Let’s explore what’s achievable together.
Your financial potential
With permanent contracts declining, mortgage lenders increasingly consider other criteria, like education and career prospects. However, there are significant differences between lenders. Where one lender could reject your mortgage right away, another might be very willing to approve your mortgage quickly. At Viisi, we know how to showcase your potential—whether you’re a temp, PhD candidate, or medical trainee—so your mortgage becomes a reality.
Temporary or annual contract
A temporary contract doesn’t have to be a barrier to getting a mortgage. However, lenders will want to assess how stable your income is. A declaration of intent can help; it’s a statement from your employer indicating their intention to offer you a permanent position after your current contract ends. With this declaration, the lender can calculate your income as if you already have a permanent contract. This letter of intent is part of an employer’s statement, including details about your salary and income structure.
Read more: the difference between an employer’s statement and a letter of intent
Employment history
And if you cannot obtain a declaration of intent? Don’t stop reading! There are still plenty of options. If you have had temporary contracts over the past three years, your mortgage application can also be based on your average income. You can request your employment history from the UWV (Employee Insurance Agency), which details where you’ve worked and how much you earned. With a sufficiently high average income, many lenders will still grant you the mortgage, even if your contract is about to end.
Work via a temp agency
Do you work with a flexible contract through a temp agency? Ask the agency to issue a statement of your employment prospects (perspectiefverklaring). This statement demonstrates that you have good prospects in the labor market and can maintain (at least) your current income. Only temp agencies registered with the Stichting Perspectiefverklaring (in Dutch, Statement of Employment Prospects Foundation) can provide this document, so double-check this. You must also have been registered with the agency for at least six months.
Can’t get a letter of intent or statement of employment prospects? In that case, lenders will evaluate the remaining term of your current contract and your earnings over the past three years. Having a profession with solid labor market prospects can also increase your chances.
PhD candidate
If you’re working on a PhD at a university or academic hospital, you likely have an income but no permanent contract. A well-prepared mortgage application can improve your chances significantly. Lenders consider factors like the duration of your PhD program, a potential letter of intent, and your prospects in the job market.
Read more about mortgages for specific professions in this article
Good to know: Do you have a profession with solid labor market prospects? This increases your chances. Many lenders have what’s called a target group policy, offering more lenient conditions for certain high-potential professions, such as:
- Medical specialist in training (AIOS)
- General practitioner in training (HAIO)
- Junior doctor
- PhD candidate
- Trainee lawyer
- Scientific researcher
Also good to know: When arranging a mortgage based on a flexible contract, timing is essential. Requesting an employer’s statement with an intent declaration often takes a few days. The same applies to a perspectiefverklaring from your temp agency. Note: don’t act too early, either.
Employer’s statements must not be older than three months when submitted to the lender, while the ‘perspectiefverklaring’ is valid for six months. Keep this in mind during your home search.
Tip: Notify your HR department or manager in advance when you need the declaration so they can prepare it on time.
Do: Work hard this year. Lenders look at your average gross annual income from the last three calendar years. The most recent year serves as the maximum. If you plan to apply for a mortgage next year, aim to maximize your income this year. You can join our webinar to learn more about maximizing your borrowing capacity.
Don’t: Don’t limit yourself to just a few lenders when searching for a mortgage. So do not just go to your bank, for example. Some lenders have specific policies for clients with temporary contracts, but not all do. Make sure to get informed about which providers are worthwhile for your application. At Viisi, we’ll make sure that you are pre-qualified for a future mortgage application so that you can be sure when making an offer for your future home.