hypotheek

A hypotheek is a loan secured on real estate, typically used to purchase a home. The borrowed amount is secured by a mortgage on the property; if the borrower defaults, the lender may enforce the mortgage by selling the property to recover the loan. In the Netherlands, mortgages are usually arranged with banks or insurers, and a notary registers the mortgage deed with the Kadaster.

Most mortgages are repaid in installments over a fixed term. Common Dutch types are annuïteiten (annuity) mortgages, where monthly payments stay constant while the balance shifts; lineaire mortgages, where principal repayment is fixed and monthly payments decline; and aflossingsvrije (interest-only) mortgages, where only interest is paid during the term. There are also savings mortgages (spaarhypotheek) and combinations. Mortgages have fixed-rate periods (5, 10, 20 years) and can be renewed or refinanced.

Tax and costs: In the Netherlands, the interest paid on a mortgage for a primary residence is generally deductible from income tax, within contemporary rules in Box 1. The exact rules may change with policy; borrowers may also be charged closing costs, notary fees, and penalties for early repayment.

Risks and protections: Changes in interest rates affect monthly payments; ensuring affordability, inflation, and housing price trends matter; borrowers may face penalties for early repayment or negative equity if values fall; consumer protections exist through financial regulators and lending standards; prudent affordability checks are recommended.