Authored by the expert who managed and guided the team behind the Netherlands Property Pack
Everything you need to know before buying real estate is included in our Netherlands Property Pack
Buying a home in the Netherlands requires careful financial planning beyond just securing a mortgage. Dutch banks typically require a 10% deposit secured through a bank guarantee, while buyers must prepare 4-6% of the purchase price in cash for various upfront costs that cannot be financed through their mortgage.
If you want to go deeper, you can check our pack of documents related to the real estate market in the Netherlands, based on reliable facts and data, not opinions or rumors.
Dutch banks require a 10% deposit secured through a bank guarantee costing around 1% of the deposit amount, while buyers must prepare 4-6% of the purchase price in cash for transfer tax, notary fees, and other closing costs.
First-time buyers aged 18-35 benefit from transfer tax exemption on purchases up to €510,000, significantly reducing their upfront cash requirements from 5-6% to just 2-3% of the purchase price.
| Cost Component | Amount (€300,000 property) | Percentage of Purchase Price |
|---|---|---|
| Transfer Tax | €6,000 (€0 if first-time buyer exemption) | 2% (0% with exemption) |
| Notary Fees | €900 - €2,000 | 0.3% - 0.6% |
| Bank Guarantee | €2,500 - €3,000 | 1% |
| Valuation/Appraisal | €600 - €1,100 | 0.2% - 0.4% |
| Mortgage Advice | €1,000 - €3,000 | 0.3% - 1% |
| Total (with exemption) | €7,000 - €10,000 | 2% - 3% |
| Total (without exemption) | €15,000 - €18,000 | 5% - 6% |
How much deposit do banks in the Netherlands usually require when buying a home?
Dutch banks require a 10% deposit (waarborgsom) of the purchase price after you sign the purchase contract.
This deposit serves as security for the seller and demonstrates your commitment to the purchase. However, you typically don't need to pay this amount directly from your savings.
Most buyers use a bank guarantee instead of paying cash for the deposit. The bank guarantee costs approximately 1% of the deposit amount, which means you pay around €3,000 for a €300,000 property instead of tying up €30,000 in cash.
The deposit is returned to you at closing when the property transfer is completed, unless you default on the purchase contract.
What is the minimum percentage of the purchase price that must be paid from my own savings?
Dutch mortgages can cover up to 100% of the appraised property value for EU residents and most first-time home buyers as of September 2025.
However, you must pay all buyer's costs (kosten koper) from your own savings, which typically amounts to 4-6% of the purchase price for most buyers.
These costs include transfer tax (2% of purchase price), notary fees, valuation costs, mortgage advisory fees, and the bank guarantee fee. First-time buyers aged 18-35 purchasing properties up to €510,000 are exempt from transfer tax, reducing their cash requirement to approximately 2-3% of the purchase price.
It's something we develop in our Netherlands property pack.
Can I finance the deposit with a mortgage, or must it always come from my own funds?
The 10% deposit cannot be directly financed through your mortgage under Dutch banking regulations.
Instead, the deposit is typically secured through a bank guarantee, which costs about 1% of the deposit amount and must be paid from your own funds. The actual deposit amount is held as security and returned at closing.
The mortgage covers only the purchase price of the property itself, not the deposit or any of the associated closing costs.
This system protects both buyers and sellers while ensuring you have some financial skin in the game without requiring a large cash outlay.
How much do I typically need upfront for transfer tax and notary fees in the Netherlands?
Transfer tax in the Netherlands is 2% of the purchase price for most buyers, while notary fees typically range from €900 to €2,000.
For a €300,000 property, you would pay €6,000 in transfer tax plus approximately €1,200 in notary fees on average. First-time buyers aged 18-35 purchasing properties up to €510,000 are completely exempt from transfer tax.
Notary fees vary by location and the complexity of the transaction, with Amsterdam and other major cities typically charging higher rates than smaller municipalities.
Both costs must be paid from your own savings and cannot be included in your mortgage financing.
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Are there mandatory valuation or appraisal costs that must be paid in cash before getting a mortgage?
Yes, property valuation is mandatory for all Dutch mortgages and must be paid upfront from your own funds.
Valuation costs typically range from €600 to €1,100 for standard properties, with validated reports costing up to €1,250. The exact cost depends on the property type, location, and the valuation company you choose.
Banks require this valuation to determine the maximum mortgage amount they will approve, and payment is usually required before your mortgage application can be finalized.
Some mortgage advisors may include valuation costs in their service packages, but the expense ultimately comes from your own savings rather than being financed through the mortgage.
Do I need to pay estate agent fees separately, and how much are they usually in the Netherlands?
Estate agent fees in the Netherlands are only paid if you hire a buyer's agent to represent your interests during the purchase process.
Buyer's agent fees typically range from 1% to 1.5% of the purchase price, which translates to approximately €3,000 to €6,000 for a €300,000 property depending on the agent and city.
The seller pays their listing agent's commission, so you don't pay for the seller's representation. However, many buyers choose to hire their own agent for negotiation support and market expertise.
These fees must be paid separately from your own funds and cannot be included in mortgage financing.
How much should I budget for mortgage advice and arrangement fees that cannot be financed?
Mortgage advisory and arrangement fees in the Netherlands typically range from €1,000 to €3,000 for standard cases.
These fees may be higher for expats or complex financial situations, sometimes reaching €4,000 or more. The cost covers mortgage application processing, advice on loan options, and liaison with banks throughout the approval process.
Most mortgage advisors require payment of their fees from your own funds, though some may offer payment plans or include certain costs in their service packages.
It's something we develop in our Netherlands property pack.
Given the complexity of Dutch mortgage regulations, using a qualified mortgage advisor is strongly recommended and often required by banks.
Are there extra upfront costs for expats, such as translation or legalisation fees?
Expats typically face additional costs for document translation and legalisation that Dutch residents don't encounter.
1. Certified translation of birth certificates, marriage certificates, and foreign bank statements 2. Apostille or legalisation of documents from your home country 3. Official translation of employment contracts and salary statements 4. Notarised copies of passports and identification documents 5. Additional banking fees for international money transfersThese costs can range from a few hundred euros to over €1,000 depending on the volume and complexity of required documents. The exact amount varies based on your country of origin and the specific requirements of your chosen bank.
Some mortgage advisors specialising in expat cases may help coordinate these services, but the costs still come from your own funds.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the Netherlands versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How much should I set aside for a bank guarantee (waarborgsom) and how is it handled?
The bank guarantee fee is approximately 1% of the required 10% deposit amount, typically costing €2,500 to €3,000 for a €300,000 property.
This fee is paid to your bank and is not refundable, as it covers the cost of the guarantee service. The bank guarantee replaces the need to pay the full 10% deposit in cash.
The guarantee remains active until the property purchase is completed, at which point it expires automatically. If you default on the purchase, the bank pays the seller the guaranteed amount and pursues recovery from you.
This system allows you to secure a property without tying up large amounts of cash while still providing security to the seller.
What percentage of the total costs is generally not covered by a Dutch mortgage and must be paid as a deposit?
Approximately 5-6% of the purchase price must be paid from your own funds for buyers subject to transfer tax.
| Cost Category | Typical Percentage | Example (€300,000 property) |
|---|---|---|
| Transfer Tax | 2% | €6,000 |
| Bank Guarantee Fee | 1% | €3,000 |
| Notary & Legal Fees | 0.3-0.6% | €900-€1,800 |
| Valuation & Advisory | 0.5-1.3% | €1,500-€4,000 |
| Agent Fees (if used) | 1-1.5% | €3,000-€4,500 |
| Total (standard buyer) | 5-6% | €15,000-€18,000 |
| Total (first-time buyer with exemption) | 2-3% | €6,000-€9,000 |
First-time buyers aged 18-35 purchasing properties up to €510,000 benefit from transfer tax exemption, reducing their cash requirement to just 2-3% of the purchase price.
If I am a first-time buyer in the Netherlands, do I get any exemptions that reduce the deposit amount?
First-time buyers aged 18-35 receive a significant transfer tax exemption that substantially reduces upfront costs.
The exemption eliminates the 2% transfer tax on properties purchased up to €510,000, saving €6,000 on a €300,000 property and up to €10,200 on properties at the maximum exemption threshold.
This exemption applies only to the transfer tax and doesn't affect other mandatory costs like notary fees, bank guarantee fees, or valuation costs. All other closing costs must still be paid from your own savings.
It's something we develop in our Netherlands property pack.
The exemption significantly improves affordability for young first-time buyers, making homeownership more accessible in the Dutch market.
What is the total estimated cash deposit I should prepare (in euros) to safely cover all upfront home-buying costs in the Netherlands today?
As of September 2025, prepare €15,000 to €18,000 for a €300,000 property if you're subject to transfer tax.
First-time buyers aged 18-35 purchasing properties up to €510,000 should prepare €7,000 to €10,000 due to the transfer tax exemption. For higher-value properties or those requiring buyer's agents, budget an additional €3,000 to €6,000.
These estimates include transfer tax (where applicable), notary fees, bank guarantee costs, valuation fees, and basic mortgage advisory services. Additional costs may apply for expats requiring document translation or buyers choosing premium advisory services.
Having 20% more than the minimum estimate provides a safety buffer for unexpected costs or premium service options during the purchase process.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Understanding Dutch mortgage requirements and upfront costs is crucial for successful property investment in the Netherlands market.
The transfer tax exemption for young first-time buyers makes the Dutch property market particularly attractive for eligible purchasers seeking their first home.
Sources
- MV Works International - First House Netherlands
- Hypotheker - Mortgage Savings Requirements
- De Financiele Alliantie - Own Money Mortgage
- Mister Mortgage - Bank Guarantee Netherlands
- HomeUp - Deposit Guarantee
- Expat Mortgage Platform - Costs for Expats
- Law Gratis - Transfer Property Act Netherlands
- Holland Estate - Transaction Costs