How do you buy and finance a new-build home?

New-build homes, called "nieuwbouw" in Dutch, are catching the attention of both expats and locals across the Netherlands. They stand out for being modern, energy-efficient, and much more straightforward to buy than older houses. Whether you are looking to buy a new-build home, it is a smart choice with many benefits.

This article, written by Bart, our mortgage advisor at OHAO, provides insight into why a new-build project can be a smart choice.

Sometimes a lottery, always a fixed price

If you have looked for a home in the Netherlands, you know just how competitive it can get. In many cities, houses sell for more than the asking price, and buyers often find themselves caught up in stressful bidding rounds.

Nieuwbouw offers fixed prices set by developers from the beginning. You know the cost before you show interest. There is no overbidding or risk of losing the property to a higher offer.

This transparency helps expats budget accurately and manage the process more easily. In contrast, existing homes do not always offer this level of predictability.

Energy-efficient home that pays off for years

Sustainability is a national priority in the Netherlands. New-build homes must meet strict energy-performance standards, which provide immediate benefits.

The main advantages include:

• Lower monthly energy bills thanks to excellent insulation and modern heating systems

• A healthy indoor climate supported by advanced ventilation

• A home designed for environmental standards and future regulations

Energy-efficient homes are cheaper to run, and many banks also factor this into their lending decisions. Some lenders offer slightly lower mortgage interest rate or higher borrowing capacity on new-build homes. One reason is that ongoing living costs are expected to be lower. Over the years, the savings can add up substantially — making energy-efficient home a real financial benefit, not just a green bonus.

A home you can personalise before moving in

One of the biggest perks of choosing a nieuwbouw home is the ability to shape it before you ever step inside. While existing homes might require months of renovation to match your style, new-build developments often allow personalisation during construction.

Dreaming of a kitchen island, a unique floor plan, or upgraded bathroom tiles? With nieuwbouw, you can often make these choices before the home is even finished. This way, your new place feels like yours from day one—no messy renovations needed after you move in.

Lower maintenance and fewer unexpected costs

Older Dutch houses may have hidden issues, such as damp basements, old boilers, poor insulation, or roofs in need of replacement. These problems can be costly and stressful to resolve.

New-build homes offer a very different experience. Everything is brand new, built to modern standards, and usually covered by warranties. For the first few years, maintenance needs are minimal, and the likelihood of large unexpected repairs is extremely low. This gives you the freedom to focus on enjoying your home rather than worrying about costly surprises.

For expats who are still learning how things work in the Netherlands, this reliability is helpful. A new-build property doesn’t just make life easier — it can also save you a significant amount of money. Even if the purchase price is similar to that of an existing home, the additional costs are often much lower.

For example, you don’t pay the 2% transfer tax (overdrachtsbelasting) on a new build home because you are the first owner.

On a home priced around €450,000, the transfer fee of 2% will be €9,000. You typically won’t need a valuation report, closing costs are lower, and many buyers don’t need a purchasing agent because they work directly with the developer.

A construction and payment process designed for flexibility

A practical benefit of nieuwbouw is phased payments. You pay in stages as construction progresses, not all at once.

This means:

• Your payments start small and increase gradually.

• You pay only for the work that has been completed.

• Any unused funds in your building deposit actually earn interest.

If you are renting or have another mortgage during construction, phased payments make mortgage payments more manageable and predictable than paying a lump sum for an existing home.

How does a mortgage work for a new construction

Financing a new-construction home differs from financing an existing property. While the overall mortgage process is similar, the timing, structure, and payment flow differ because the home is still under construction. The key element that makes this possible is the new-build mortgage and the bouwdepot — the construction deposit account used to pay for building costs.

Your mortgage starts before the home is finished

Once your mortgage is approved, you sign the mortgage deed at the notary, even if construction has not yet begun. From that moment:

• The land becomes yours.

• The bank pays the land cost and any completed work.

• The remaining mortgage funds are placed in your bouwdepot.

You begin paying monthly interest immediately, but these early payments are usually lower because much of your mortgage balance is still sitting in the bouwdepot (not yet used).

The bouwdepot pays for construction in phases

The bouwdepot functions as a controlled account dedicated to construction costs. Developers submit invoices based on building milestones, and the bank releases funds in stages.

• New-build → the bank pays the developer directly.

• Renovation → you pay first, the bank reimburses you.

Only construction-related items (including approved meerwerk) can be financed through the bouwdepot.

You earn interest on unused bouwdepot funds

A useful feature is that the money still sitting in the bouwdepot earns interest. This interest partially offsets the mortgage payments you pay during the construction period, so your early monthly costs feel lighter and more manageable.

The bouwdepot is usually valid for 18–24 months. Any unused balance at the end of this period is automatically used to lower your mortgage.

Construction interest (bouwrente) may apply

There are two types of construction interest to understand:

• Financing compensation – interest on costs already paid by the developer

• Deferred interest – interest charged between signing the construction contract and signing the mortgage deed

Financing compensation is not always tax deductible; deferred interest usually is. Your advisor can help determine the best approach based on your situation.

Expect temporary double housing costs

While waiting for your nieuwbouw home to be completed, you may still be paying rent or your current mortgage. To reduce pressure, homeowners can use a bridging loan, which unlocks equity from their current property before they sell it.

Is a new-build home right for you?

If you want predictability, low maintenance, long-term savings, and a home that fits your needs, a nieuwbouw property is a good choice. New-build homes are suitable if you plan to stay in the Netherlands, want to personalise your space, or prefer a straightforward buying process.

Many expats also wonder how to handle double housing costs during construction or how the bouwdepot will work in their specific situation.

Schedule a free, no-obligation call with one of our mortgage advisors and get clarity with real-life examples of what your new-build mortgage Netherlands could look like.