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
Eigenwoningforfait (Notional rental value)
"Eigenwoningforfait" is a tax on the theoretical income that a homeowner could earn by renting out their home, even if they do not actually rent it out.
Erfpacht (Ground lease)
Often houses in the Netherlands are not on private land, but on leasehold land. This leasehold land is then rented from the landowner (often the municipality).
Hypotheekakte (mortgage deed)
The mortgage deed is the official contract for a mortgage. The mortgage deed contains all agreements with the bank that relate to the mortgage.
Hypotheeksom (Mortgage sum)
he mortgage sum is the total amount that is borrowed from a lender.
Koopakte (Purchase deed)
The written purchase agreement between the buyer and seller of a house. Other words for koopakte are koopcontract or koopovereenkomst (purchase contract or purchase agreement).
Maandlast netto (Monthly charge net)
The net monthly payment is the amount that is paid monthly for the mortgage after tax settlement. Therefore, the tax is taken into account.
National Mortgage Guarantee (NHG)
Notariskosten (Notary fees)
When you buy a house, a visit to the notary is unavoidable. The deeds required for the purchase of a home are drawn up by a notary.
Taxatiekosten (Appraisal costs)
The appraisal costs are one of the additional costs when taking out a mortgage. They are the costs for the valuation of a house by an independent appraiser.
WOZ-waarde
WOZ stands for Valuation of Real Estate (Waardering Onroerende Zaken). The WOZ Act ensures that all governments use the same valuation for a home when levying taxes.