Buying a new home is exciting, but timing can be tricky if your current property hasn’t sold yet. In these situations, a bridging loan, sometimes called an overbruggingshypotheek, can be used.
In the Netherlands, people often use bridging loans to cover the gap between selling one home and buying another.
This blog article is written by Toni, our mortgage advisor, who helps expats understand how bridging mortgages work, offering a clear overview of when you might need one, the requirements involved, and what to consider before applying.
What is a bridging loan?
A bridging loan is a short-term loan that helps you buy a new home when you have not yet received the money from selling your current home. Usually, you pay back the loan as soon as your old home is sold. The main idea is to let you move ahead with your plans without having to wait for both transactions to line up perfectly.
When is a bridging loan needed?
People use bridging loans when there is a gap between selling their current home and buying a new one. This gap can occur for many reasons, such as market changes, legal delays, or finding your next home before your current one is sold.
Many homeowners like to sell their current home first to be sure of their finances. In a busy housing market, though, some people decide to buy first so they do not lose out on a good property. A bridging loan can make this possible when you are moving home mortgage Netherlands.
Common scenarios where bridging loans are used
Scenario 1: your current home is sold (but not completed)
In this situation, your home is sold, but you have not received the money yet. This often happens because of notary schedules or waiting for the official completion date.
A bridging loan can cover this short period, sometimes just a few weeks. As soon as the sale is complete and you receive the funds, you pay back the loan immediately.
Scenario 2: your current home is not yet sold
This is a more common and higher-risk situation. You buy your new home first, while your current home is still for sale. The bridging loan gives you extra time, often several months, to sell your old property.
Most lenders want to see that your current home is actively for sale, such as with a listing or a signed agreement with a broker. When your home is sold, you use the money to pay back the loan.
Short vs. longer bridging loan periods
Very short bridging (a few weeks up to a couple of months) is used when the sale is already signed, and only the notary transfer is pending.
Most bridging loans last up to 12 to 24 months, depending on the lender. For new-build projects, the period can sometimes be up to 36 months. The longer you have the loan, the more it will cost, so timing is important.
Requirements for a bridging loan in the Netherlands
While requirements vary by lender, most Dutch bridging loans include:
Sufficient home equity Netherlands.
A clear exit strategy (usually the sale of your existing property).
A maximum loan amount based on a percentage of your home’s value or sale price. This is often 80 to 90 percent of the value minus your current mortgage, and sometimes up to 100 percent if your property is already sold. This relates closely to loan-to-value Netherlands.
A limited loan term, usually up to 12 to 24 months, depending on the lender and property type. Some lenders offer up to 36 months for new-build homes.
Proof that you can manage the financial overlap if the sale takes time (lenders assess the affordability of double housing costs as part of the mortgage application requirements Netherlands).
Banks typically require a recent tax appraisal or valuation, and proof that your current home is for sale or has been sold.
What if your equity is positive vs. negative?
Positive equity
If your home is worth more than your remaining mortgage, you are in a good position. Positive equity makes it easier to get a bridging loan and may help you get better terms. Even with positive equity, many lenders still lend only up to 80 to 90 percent of the expected equity to allow for possible price changes and sale costs.
Negative equity
If your mortgage is higher than your home’s value, getting a bridging loan is much harder. Lenders see this as a higher risk and may ask for extra assets, more income, or guarantees. Sometimes, they may not offer a loan at all.
Are there limits on bridging loans?
Yes, there are limits to bridging loans. These usually apply to:
Loan amount, based on property value and equity.
Loan duration is typically 12–24 months, though some exceptions are shorter.
Purpose, strictly related to property transactions.
Bridging loans are meant for short-term use only.
Can a bridging loan be used for a newly built home?
Yes. In the Netherlands, bridging loans can also be used for new-build properties. Many lenders allow longer bridging terms for nieuwbouw, often up to 24–36 months while the home is being built. Lenders often coordinate closely with the notary and developer. The same principles apply: sufficient equity, a clear repayment plan, and a defined timeline. This is especially relevant when following the process of how to buy a new build home Netherlands.
Is interest on a bridging loan tax deductible?
In many cases, interest on a bridging loan is tax-deductible in the Netherlands if the loan is used for your primary residence and both homes qualify as “eigen woning.” This falls under the rules for mortgage interest deduction Netherlands. The deduction is time-limited when you temporarily own two homes, typically to a maximum of two years. Because tax situations vary, professional tax advice is always recommended.
Advantages of a bridging loan
Let's you buy before selling
Helps secure your next home quickly
Reduces dependence on long property chains
Useful in competitive or fast-moving markets.
Disadvantages and risks
Higher interest rates and additional fees.
Financial pressure if your home doesn’t sell quickly
Short repayment timelines
Requires careful financial planning
If your home is still not sold when the bridging period ends, you might have to sell for a lower price or arrange an extension or other financing, which can be expensive.
For more information and personalised advice, please contact Toni or one of our mortgage advisors by scheduling a free, no-obligation call. We are happy to assist you with your mortgage when moving home and arrange a bridging loan if needed.
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