Monthly costs: gross and net (bruto en netto maandlasten)
Your bank charges the gross payment. Because mortgage interest on your main home is deductible from income tax, what it really costs you each month is lower: the net cost.
How it works
- Gross payment: interest plus repayment. An annuity mortgage (annuïteitenhypotheek) has the same payment every month; a linear one (lineaire hypotheek) repays the same amount, so it starts higher and falls.
- Notional rental value (eigenwoningforfait): a share of the WOZ value that is added to your income. You find the WOZ value on the municipality's tax notice or the WOZ-waardeloket.
- Mortgage interest deduction (hypotheekrenteaftrek): the interest is deducted from your income, at no more than the maximum rate of this year, even if you earn more.
- Little or no mortgage: when the interest is lower than the forfait, most of the difference is deducted again (Wet Hillen), at a share that falls every year.
The figures come from the Belastingdienst for this tax year and are shown with their sources. Your real tax depends on your whole situation, a partner and other deductions. Indicative, not advice.
Next: how much you could borrow or buyer costs and the cash you need.