hypotheekrente

Hypotheekrente is the interest paid on a mortgage loan in the Netherlands. It represents the cost of borrowing money to purchase, renovate or refinance residential property and is expressed as an annual percentage rate (percentage per year) applied to the outstanding loan balance. The interest is usually paid together with the principal repayment in monthly installments, although separate interest‑only periods are also possible.

The level of hypotheekrente depends on several factors. The most important is the reference rate, which historically has been linked to the Euribor or the Dutch interbank offered rate (EONIA). In recent years, fixed‑rate mortgages have become popular, with rates determined by market expectations of future interest movements. Other determinants include the loan‑to‑value ratio, the borrower’s credit profile, the amortisation schedule and the term of the loan. Longer terms and higher loan‑to‑value ratios generally lead to higher rates.

Tax treatment is a distinctive feature of the Dutch mortgage market. Interest paid on a mortgage for a primary residence is tax‑deductible from the borrower’s taxable income, subject to a maximum deductible amount and a gradual phase‑out that started in 2013. This fiscal advantage influences borrowers’ choices between fixed and variable rates and affects overall housing demand.

Recent developments have seen a gradual decline in hypotheekrente due to low European Central Bank policy rates, although the market remains sensitive to inflationary pressures and monetary policy adjustments. Lenders also offer hybrid products that combine an initial fixed period with a subsequent variable rate, giving borrowers flexibility while managing interest‑rate risk.