Your income is one of the most important factors in determining how much you can borrow. Lenders typically review your gross annual income — this includes your salary, bonuses, and any other regular sources of income. Mortgagee lenders use this figure to calculate your debt-to-income ratio.

In most cases, lenders prefer that your total monthly debt payments — including your future mortgage — do not exceed 36% of your gross monthly income.

In addition to income, lenders, as well asses the stability and history of your earnings.

If you are self-employed, you will need to provide additional documentation, such as tax returns and financial statements, to prove your income.

Your existing debts also play a major role in determining your maximum mortgage amount. Lenders will review your current financial obligations, including student loans, car loans, credit card debts, and other personal loans.

They calculate your debt-to-income ratio by adding up all your monthly debt payments and dividing that total by your gross monthly income. A high debt signals higher financial risk to lenders, which may lower the amount you are eligible to borrow.

To increase your borrowing capacity, it's advisable to pay down existing debts before applying for a mortgage. Reducing your outstanding balances will lower your debt ratio and make you a more attractive candidate to lenders.

Interest rates are a key factor in determining the cost of your mortgage. In the Netherlands, interest rates can either be fixed or variable, each with its advantages and considerations.

With a fixed interest rate, your mortgage payments stay the same throughout the entire term. This offers stability and makes it easier to budget long-term since you’re protected from fluctuations in the market. Fixed-rate periods typically range from 1 to 30 years. While longer terms provide more stability, they often come with slightly higher interest rates compared to shorter ones.

Variable rates, on the other hand, can change periodically based on market conditions. They may start lower than fixed rates, which can be appealing to some borrowers. However, there’s a risk that they could increase over time, leading to higher monthly payments. Variable rates can be beneficial if you anticipate that interest rates will stay low or decrease, but they come with more financial risk.

The Loan-to-Value (LTV) ratio represents the maximum percentage of a property’s value that can be borrowed through a mortgage. In the Netherlands, the typical maximum LTV ratio is 100%, meaning you can borrow up to the full value of the property.

However, additional costs such as notary fees, taxes, and any potential renovation expenses are not included in the mortgage and will need to be paid out of pocket.