Foundation problems in the Netherlands: what they mean for your mortgage

When buying a home in the Netherlands, you probably check the asking price, energy label and renovation needs. But the condition of the foundation can have an equally important impact on your budget.

Foundation problems can mean expensive repairs, affect the property’s value and limit your mortgage options. From 1 January 2027, new NHG rules make potential foundation repair costs an explicit part of the mortgage assessment. Here is what you need to know before making an offer.

This article is written by Bart, our mortgage advisor at OHAO, who helps expats and internationals navigate the Dutch mortgage and housing market.

How can foundation problems affect your mortgage?

Your mortgage depends on both your financial situation and the property you want to buy, so it is worth understanding how much you can borrow with a Dutch mortgage before you start viewing. Foundation problems can affect that assessment in two ways:

• The property may be worth less. A lower valuation can limit how much a lender will finance under the Dutch loan-to-value rules.

• Potential repairs put pressure on your budget. A lender may need to account for those costs when assessing what you can afford.

This means a home could be within your income-based borrowing limit but still require more savings than you expected, so it is worth checking how much savings you need to get a mortgage.

You also need to consider how you would pay for the repairs themselves. Having enough money to complete the purchase does not necessarily mean you can afford the work afterwards.

What changes for NHG mortgages in 2027?

From 1 January 2027, new NHG foundation-risk rules mean lenders must take expected repair costs into account when assessing an NHG mortgage for a property with a high foundation risk. If you are new to the scheme, our guide to the national mortgage guarantee NHG explains how it works and what the limit is for 2027.

The foundation risk information in a valuation report includes a classification from A to E. A indicates the lowest estimated risk; E indicates the highest.

A D or E classification is a warning to investigate further, rather than proof that the foundation is defective. An exploratory investigation helps establish whether the risk is low, medium or high, as set out in NHG’s guide to foundation risk.

If a high risk is confirmed, the estimated repair costs affect the affordability assessment, as defined in NHG’s 2027 conditions and standards. You may still qualify for NHG, but your maximum mortgage can be lower.

The reduction is not automatically equal to the estimated repair bill. Your advisor needs to calculate the effect for your circumstances, and our explanation of how the maximum mortgage is calculated covers what else feeds into that figure.

If you are buying without NHG, foundation problems can still affect the valuation and your lender’s willingness to finance the property.

What signs should you look for?

During a viewing, pay attention to:

• Cracks in exterior or interior walls.

• Noticeably sloping floors.

• Doors and windows that no longer close properly.

• Visible leaning or uneven settlement.

• Foundation repairs or problems reported in neighbouring homes.

These signs do not automatically mean the foundation is failing. Equally, a home without visible cracks is not guaranteed to have a sound foundation.

A general building inspection can identify warning signs, but it does not replace specialist foundation research, which KCAF, the Dutch foundation expertise centre, can point you towards.

How much can repairs cost?

Foundation repairs can cost tens of thousands of euros, which usually means increasing your mortgage for renovation or paying from savings. The final amount depends on the foundation type, the building, access to the site and the extent of the work.

The budget may also need to cover replacing floors, repairing interior damage and restoring finishes.

An estimate in a valuation report is not a contractor’s quotation. Before committing to a property with a known problem, establish what has been investigated, what work is recommended and how reliable the cost estimate is.

Do not assume your home insurance will pay. Damage caused by gradual subsidence or deterioration is generally excluded, and NHG is not insurance for foundation repairs. Vereniging Eigen Huis covers foundation repair costs and insurance in more detail.

Buying an apartment? Check the VvE

For an apartment, foundation repairs may involve the owners’ association, known as the VvE — our guide on the VvE explained covers what an association is legally required to save and why that matters to you as a buyer.

This adds another consideration: even if you can afford your share, decisions and funding may depend on the other owners.

Ask for:

• Any existing foundation reports.

• Recent meeting minutes discussing problems or repairs.

• The long-term maintenance plan.

• The reserve fund balance and any planned additional contributions.

Check the deed of division to understand how responsibilities and costs are allocated. A low monthly VvE contribution does not necessarily mean the building will be inexpensive to maintain.

What should you do before making an offer?

Foundation checks fit into the wider step by step home buying journey, and the earlier you start them the more options you keep.

1. Ask about the foundation early.
Request existing reports, details of previous repairs and information about any known problems.

2. Discuss the property with your mortgage advisor.
Ask how the available information could affect your borrowing capacity, savings requirement and lender options. Our list of questions to ask a mortgage advisor is a useful starting point.

3. Arrange specialist advice where needed.
If there are warning signs, establish whether further investigation is necessary before committing. If you start with a building inspection, arrange it within the cooling-off period so a negative result still allows you to withdraw.

4. Discuss suitable purchase conditions with your buying agent.
A financing clause or foundation-investigation condition may provide protection, depending on its wording and deadlines. Allow enough time to obtain and assess the results, and be aware of the risk of bidding without a financing clause on a property with a known foundation risk.

Can you still buy a home with foundation problems?

Potentially, yes. A foundation risk does not automatically make a property unsuitable.

The important questions are whether the condition is sufficiently understood, whether the price reflects it and whether you can finance both the purchase and any necessary repairs.

Keep in mind that every situation is different. The examples in this article are for illustration purposes only. For advice tailored to your personal situation, contact our mortgage advisors at OHAO.

Frequently asked questions by expats

Does a D or E classification mean the foundation is defective?

No. The classification is an estimate of risk, not proof of a defect. It is a signal to investigate further, and an exploratory investigation establishes whether the risk is low, medium or high. Only a confirmed high risk affects the affordability assessment for an NHG mortgage.

Will my home insurance cover foundation repairs?

Generally not. Damage caused by gradual subsidence or deterioration is usually excluded from standard home insurance, and NHG is not insurance for foundation repairs either. In most cases repair is funded from savings or by increasing the mortgage.

Can I still get a mortgage on a home with foundation problems?

Often yes. You may still qualify for an NHG mortgage, although the maximum amount can be lower, and the reduction is not automatically equal to the estimated repair bill. Without NHG, foundation problems can still affect the valuation and your lender's willingness to finance the property, so it is worth discussing the specific property with an advisor before you bid.