How to Get a Mortgage When Your Income is Not in Euro
By José de Boer, De Boer Financial Consultants
De Boer Financial Consultants are specialized in expat mortgages. José de Boer is the owner and director and has many years of experience dealing with a wide variety of expat-related legal and financial matters.
Earlier this year the Dutch Government adopted new European legislation regarding mortgages, the Mortgage Credit Directive.
In this new European regulation for mortgage financing it is stipulated, for instance, that if you earn your salary in a foreign currency (other than euros) you could actually ask your bank for a mortgage in this particular currency. And although I would always advise anyone against financing a house in another currency from the one in which the house is bought, these new regulations had unintended consequences.
No euro income? No mortgage
The result was that it effectively scared off the banks altogether from financing anyone with a different currency income, despite the fact that their fears are based on a misinterpretation of the legislation. Banks are not forced to give you the non-Euro mortgage if you have a non-Euro income. But they are refusing you just in case you would possibly ask for a different currency mortgage in the future. All Dutch banks have now collectively decided to turn down all mortgage applications from clients who are not earning their salary in euros.
An obstacle for house hunting expats
In my opinion, which many people share, this misinterpretation of legislation is a problem for the expat community, but also for the Dutch economy that has always been so welcoming to internationals who want to work and live here. The Netherlands needs expats. Migrants of all types enrich this country in so many ways, so it is important to do everything we can to welcome them and to keep them here.
Luckily we have found solutions for many clients with non-euro income, but not for everybody. The reason is that we work with a bank outside The Netherlands (excellent interest rates and conditions). If you are earning in USD, Swiss Francs, Norwegian Kronen or any other currency outside the EU we can probably be of assistance.
If you are facing limited mortgage options, don’t hesitate to contact De Boer Financial Advisors. They are able to find solutions for many internationals with non-euro incomes.
“Dutch House” photo credit: piningforthewest on Flickr
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