When choosing a mortgage in the Netherlands, many people mainly focus on the interest rate and the monthly payment. In reality, however, the actual cost of a mortgage can be much higher than just the loan amount and interest alone.
That is why banks also show the annual percentage rate, known as APR. In the Netherlands, this indicator is called JKP (jaarlijks kostenpercentage).
JKP helps you better understand the total cost of a mortgage and compare offers from different banks.
In this article
- What is the annual percentage rate?
- What is included in JKP in the Netherlands?
- Why does a lower interest rate not always mean a cheaper mortgage?
- What is JKP used for?
- How should you compare mortgage offers in the Netherlands?
- What additional costs are involved with a mortgage?
- Is JKP the most important factor?
- How does Domek help when choosing a mortgage?
- Frequently asked questions
What is the annual percentage rate?
The annual percentage rate shows the total yearly cost of a mortgage.
Besides the mortgage interest itself, it also includes additional costs related to arranging and maintaining the mortgage.
This makes it easier to understand how much a mortgage in the Netherlands really costs.
What is included in JKP in the Netherlands?
The annual percentage rate may include:
- mortgage interest,
- mortgage advisor costs,
- fees related to arranging the mortgage,
- notary costs,
- property valuation costs,
- certain insurance premiums,
- costs related to Nationale Hypotheek Garantie (NHG),
- administrative fees.
The exact costs included depend on the type of mortgage and the bank’s conditions.
Why does a lower interest rate not always mean a cheaper mortgage?
This is a very important point when comparing mortgage offers.
Some mortgages may have a lower interest rate but higher additional costs. As a result, the total cost of the mortgage may be higher than an offer with a slightly higher interest rate.
That is why it is important to look not only at the monthly payment, but also at the annual percentage rate when comparing mortgages.
What is JKP used for?
JKP helps you:
- better understand the total cost of the mortgage,
- compare offers from different banks,
- avoid hidden costs,
- evaluate which offer is actually more beneficial,
- better plan your monthly budget.
This makes it easier to make an informed decision about your mortgage.
How should you compare mortgage offers in the Netherlands?
When comparing mortgages, it is important to review:
- the interest rate,
- JKP,
- the type of interest rate,
- the fixed-rate period,
- the monthly payment,
- additional costs,
- early repayment conditions,
- options for transferring your mortgage interest rate when moving.
The lowest monthly payment does not always mean the best mortgage.
What additional costs are involved with a mortgage?
Besides the mortgage itself, buying a home in the Netherlands may also involve:
- notary costs,
- property transfer tax,
- mortgage advisor fees,
- property valuation,
- insurance,
- administrative fees,
- NHG-related costs.
That is why it is important to carefully review all costs related to financing a property before buying a home.
Is JKP the most important factor?
JKP is a very important part of comparing mortgage offers, but it should not be the only factor when choosing a mortgage.
Other important factors include:
- stability of monthly costs,
- flexibility of the mortgage conditions,
- possibility of early repayment,
- your financial situation,
- future plans related to the property.
The best mortgage is the one that fits your personal situation.
How does Domek help when choosing a mortgage?
At Domek, we help internationals in the Netherlands understand the entire mortgage process from A to Z.
We help you:
- compare offers from different banks,
- analyze the total mortgage costs,
- understand the difference between interest rates and JKP,
- check your borrowing capacity,
- and find the solution that best fits your situation.
This way, you clearly understand all costs related to buying a home and arranging a mortgage in the Netherlands.
For more than 15 years, Domek has been helping internationals in the Netherlands arrange mortgages and buy property.
Our team supports clients at every stage of the process — from calculating borrowing capacity and comparing mortgage offers to finalizing the purchase of a home.
FAQs
What is my maximum mortgage?
The maximum mortgage amount depends on the income or incomes of the applicants, the type of employment contract and the overall financial situation. Use our calculator to quickly calculate your borrowing capacity in the Netherlands.
In which cities is it easier to find a home within my budget?
The Domek team can help you understand the differences between regions and the available opportunities. Send us your preferences through the “Find my home” button and we will contact you as soon as possible.
How can I increase my chances of buying the house I want?
You can increase your chances by preparing properly, knowing your real budget and reacting quickly when you find the right property. Read our blog about this topic or speak with a Domek consultant.
My question is not here and I do not know where to start.
The Domek team can guide and support you step by step throughout the entire process. Contact us for a free consultation and we will analyse the your options together.
