Bankgarantie (Bank guarantee)

What is a bank guarantee?

In the context of a mortgage in the Netherlands, a "Bankgarantie" refers to a bank guarantee that is required by the mortgage lender to secure the loan. This bank guarantee is provided by the borrower, and serves as a form of security for the lender in the event that the borrower is unable to make their mortgage payments.

When obtaining a mortgage in the Netherlands, the borrower typically needs to provide a bank guarantee for a certain percentage of the loan amount, usually between 10-20%. This guarantee is held by the lender and can be used to cover any outstanding debt if the borrower defaults on their mortgage payments.

It's important to note that a bank guarantee is not the same as mortgage insurance, which is a separate type of insurance that protects the lender in the event of default. Mortgage insurance is typically required for borrowers who are not able to make a substantial down payment on their mortgage, whereas a bank guarantee is required for all borrowers.

Overall, a bank guarantee is an important component of the mortgage process in the Netherlands, as it provides security to the lender and helps ensure that borrowers are able to meet their financial obligations.

When you choose to use our service, our experienced advisors will be available to guide you through the process and answer any questions you may have about the various aspects of obtaining a mortgage in the Netherlands, including the bank guarantee. Our team has a deep understanding of the Dutch real estate market and can provide you with personalized advice tailored to your specific needs and financial situation.

Mortgage terms
Aankoopkosten (Purchase costs)
There are several additional costs associated with the purchase of a house. These one-time costs are called purchase costs.
Afsluitkosten (Closing cost)
"Afsluitkosten" refers to the closing costs associated with taking out a mortgage. These costs include commissions, appraisal fees, notary fees, and fees for applying for a National Mortgage Guarantee (NHG).
Bankgarantie (Bank guarantee)
When buying a house you will be asked for a bank guarantee. The bank guarantee is a guarantee that you, as the buyer of a house, must give to the civil-law notary.
Belastingaftrek (Tax deductions)
The government has various tax measures that are favorable to homeowners with a mortgage.
Betalingstermijn (Term of payment)
The payment term is the periodic term in which you pay the interest, premium and possibly also the repayment.
Boeterente (Penalty interest)
Lenders charge a penalty if the mortgage is repaid earlier than agreed in the mortgage deed, for example when refinancing. With the penalty interest, the lender compensates for the lost income from the mortgage.
Bouwfinanciering (Construction finance)
Construction financing is the way in which you can finance a new building.
Bruto jaarinkomen (Gross annual income)
The gross annual income (or gross annual salary) is the income before deductions. Read what is included in the gross annual salary. We also provide a handy rule of thumb to calculate this.
Bruto maandlast hypotheek (Gross monthly mortgage payment)
Gross means 'without deduction'. The gross monthly payment for a mortgage is the amount that is paid monthly without mortgage interest deduction without tax settlement.
Eigen geld (Own money)
You can use this capital to finance your house. This capital is called equity. Own money offers on the one hand the possibility to borrow less