Can you get a mortgage with a temporary contract in the Netherlands?

You’ve found a home you like, but your employment contract is (still) temporary. Can you still get a mortgage in the Netherlands? The short answer: yes, in most cases you can. A permanent contract is no longer a strict requirement. Your type of contract does decide how the bank looks at your income, and therefore how much you can borrow.

In this blog we explain the options, what you need for each one and how to improve your chances.

1. Temporary contract with a declaration of intent: as good as permanent

The easiest route is a declaration of intent (intentieverklaring). In it, your employer states that they intend to turn your contract into a permanent one, as long as you keep performing as you do now. This declaration is part of the employer’s statement you submit with your mortgage application.

With a declaration of intent, the bank treats your application as if you had a permanent contract. Your current income then counts in full towards your maximum mortgage.

Good to know: a declaration of intent is not a promise. Your employer is not obliged to actually offer you a permanent contract. For the bank, however, it gives enough certainty to count your income.

2. No declaration of intent? Look at the Income Assessment for Employees

Is your employer unwilling or unable to give a declaration of intent? Then the Inkomensbepaling Loondienst (IBL) is often a good alternative. You download your employment history statement (Verzekeringsbericht) yourself via Mijn UWV. A calculation tool then uses your work history to decide how much income the bank may count. You no longer need an employer’s statement.

• Who is it for? Employees with a permanent, temporary or on-call contract.
• How long do you need to have worked? You need to have been employed for at least three months.
• Where can you use it? NHG and a growing number of lenders accept the IBL.

The longer and more stable your work history, the better the outcome. If you only started recently, or your income varies a lot, the IBL may come out lower than your current salary.

3. Flexible income: how the bank calculates it

Do you have an on-call, zero-hours or min-max contract? Or a temporary contract without a declaration of intent? Then the bank usually treats your income as flexible income and looks at the past:

• The bank takes your average income over the last three calendar years.
• If your income in the most recent year is lower than that average, the most recent year counts.

Example: you earned €34,000, €38,000 and €41,000. The average is €37,667. That is the amount the bank uses, even though you now earn €41,000. A recent pay rise therefore only partly counts.

4. Agency worker or flex worker: two extra routes

For flex workers there are two statements that look at your future prospects instead of only your past:

• Perspectiefverklaring (prospects statement) – for agency workers. The employment agency assesses your chances of work and income. You usually need at least one year of assessed work experience through the agency. A mortgage with the National Mortgage Guarantee (NHG) is possible.
• Arbeidsmarktscan (labour market scan) – for flex workers on a payroll, such as on-call staff. The scan looks at your education, experience and demand for your profession. You must have been employed for at least 12 of the last 14 months. With a score of 70 points or more, you can use the report for your application, with or without NHG.

5. Overview: which route fits you?

What does this mean for you?

• Ask for a declaration of intent first. It is the quickest route and often gives the highest mortgage. Ask in good time, as HR may need a while.
• Buying together? If your partner has a permanent contract, that strengthens the application. Both incomes count.
• Expat on a temporary contract? A declaration of intent can make all the difference for you too. Read more about mortgage advice for expats.
• Have the routes compared before you apply. The outcome can differ by thousands of euros per route. Get a first indication with our tool to calculate your maximum mortgage.

Not sure whether it will work with your contract? At Advies van Jord we’re happy to figure it out with you. Book a free introductory meeting: online, at our office or at your home in the Rotterdam and Utrecht area.