Financing
The financing of your new home in the Eifel is the final step in your search and purchase. EifelHome can advise you on Dutch and/or German mortgages. We will request mortgage quotations for you at the banks you feel most comfortable with.
Below are a few points that you must consider when arranging a mortgage:
· Financing possibilities are dependent on whether the house is a main or a second home.
· the correct type of mortgage is totally dependent on your financial and tax position. Discuss this with your financial advisor or tax advisor.
· Ask if the bank offers insurance possibilities (contents and home insurance)
· Ask how much % of financing of the purchase price or liquidation value is possible.
· Ask about the possibility of penalty-free mortgage pay off.
· House valuation: EifelHome or the bank can arrange this for you for about £553 (800 euros)
· Ask whether income from the Netherlands or Germany is essential for obtaining a mortgage. It is possible to finance roughly 4.5 times your income.
· Ask if, with a mortgage, you may rent out the (holiday) house.
· Ask if the mortgage is redemption-free.
What the bank should mention in a mortgage quotation:
· The type of mortgage
· The term of the mortgage
· The actual interest
· The fixed-term interest
· Mortgage commission
· The cost of the mortgage deeds
· Periodic payments/charges
· Other (administrative) costs
What details do banks need for arranging a mortgage?
· A copy of your ID card/proof of identity
· Monthly salary slips from your employer for the last 3 months
· Tax returns
· In the case of the self-employed: statement of accounts for the last 3 years and personal net taxable income.
Other important information
German variable interest is comparable to Dutch interest because both are based on the Euribor rate of interest. Interest is between 5.2 and 6.2 at the moment. A Dutch mortgage is subject to Dutch law; a German mortgage is subject to German law.