I often speak with international clients who want to buy a home in the Netherlands. Many of them are surprised by how strict the mortgage process feels. They often ask me why their income seems sufficient on paper but still leads to a lower mortgage offer. In 2025, this question is more relevant than ever. Data from De Nederlandsche Bank shows that Dutch banks have tightened their lending standards (Mortgage Supply and Demand (Bank Lending Survey) | Dashboard, n.d.). In this blog, I explain what is happening and what this means for you as a potential buyer.
How Dutch mortgage lending works
Mortgage lending in the Netherlands follows a regulated framework. Banks must assess whether a household can still afford monthly payments if interest rates increase. They do not focus on current income but rather test financial resilience. This approach protects borrowers and the financial system, but it also limits how much you can borrow. I often explain to clients that this system prioritises long-term stability over short-term opportunity, which aligns with a sustainable approach to home ownership.
The Bank Lending Survey published by De Nederlandsche Bank tracks how banks adjust their mortgage policies. Recent outcomes show that banks apply stricter credit standards. Income checks have become more detailed and risk tolerance has declined. At the same time, demand for mortgages remains strong, while housing shortages and population growth continue to support buyer interest. This combination leads to more competition and lower approval margins, meaning that households can typically borrow less relative to their income than in previous years.
Why banks are more cautious
Higher interest rates increase monthly payments, whilst inflation affects disposable income. Economic uncertainty raises the risk of income disruption, which makes banks respond by tightening lending conditions. This behaviour follows established economic research on credit cycles (Borio et al., 2023). Central banks consistently show that stricter lending during uncertain periods reduces default risk later, and Dutch banks follow this logic. From a long-term perspective, this caution supports financial stability rather than speculative borrowing.
What this means for international buyers
For international buyers, there are some additional challenges. Foreign income must be verified, contract types are different from Dutch standards, temporary contracts receive lower acceptance than permanent ones, and self-employed professionals need a clear income history. In my field of work, I see many clients underestimate the impact of documentation quality.
Furthermore, borrowing the maximum amount has become more difficult. Clients who prepare early usually achieve better outcomes, whilst clients who apply late often face delays or lower offers. This is because banks approve lower loan amounts relative to income, and savings now play a more important role than income alone. In practice, this means that financial planning and liquidity buffers have become essential for international buyers.
My role as an advisor
As an advisor, my role is to translate policy into action. I help clients understand how banks assess risk, calculate affordability, and structure income documentation in line with bank requirements. Research in consumer finance shows that informed borrowers make more sustainable decisions, and in the Dutch mortgage system this guidance is essential.
Conclusion
In conclusion, the Dutch mortgage market in 2025 reflects caution and structure. The Bank Lending Survey confirms that lending standards have tightened, which requires more understanding and preparation from international buyers. When you adapt to the system, you improve your position. A mortgage should ultimately support long-term financial stability, and clear planning combined with informed advice helps make that possible (Housing, n.d.).
Reference list
Borio, C., Claessens, S., Mojon, B., & Shin, H. S. (2023). BIS Quarterly Review. In Monetary and Economic Department & Editorial Committee, BIS Quarterly Review. https://www.bis.org/publ/qtrpdf/r_qt2303.pdf
Housing. (n.d.). OECD. https://www.oecd.org/en/topics/policy-issues/housing.html
Mortgage supply and demand (Bank Lending Survey) | Dashboard. (n.d.). De Nederlandsche Bank. https://www.dnb.nl/en/statistics/dashboards/residential-mortgages/mortgage-supply-and-demand-bank-lending-survey/
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