Different types of mortgages in the Netherlands (2026)
Compare Dutch mortgage types in 2026 — annuity, linear, sustainable and more. See which one qualifies for interest deduction and fits your situation.
In the Netherlands today there are really only two mortgage types that qualify for mortgage interest deduction: the annuity mortgage and the linear mortgage. Since 2013, that tax rule has applied to anyone taking out a new mortgage, which is why these two dominate the market. Older types like interest-only and savings mortgages still exist but only keep their tax benefit if you took them out before 2014. This article explains each option so you can pick the one that fits your situation.
Before choosing a mortgage type, it's important to calculate your maximum mortgage and understand the mortgage application process.
Annuity Mortgage
An annuity mortgage is a type of mortgage where the monthly sum of interest plus repayment remains the same throughout the term. At the beginning of the term, you pay mainly a lot of interest and as the term progresses, you start paying off more. On the end date, the entire mortgage is repaid. An annuity mortgage has the following characteristics:
- The mortgage has a fixed end date
- During the term, you repay periodically
- Your (gross) monthly costs are the same every month
- You have certainty that you will repay the mortgage
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A Linear Mortgage
A linear mortgage is a form of mortgage where you repay the same amount of capital each month over the term. The interest you pay gets lower and lower, reducing your total monthly expenses over time. The characteristics of a linear mortgage are:
- The mortgage has a fixed end date
- During the term, you repay the same amount of capital every month
- In the beginning, you pay a lot of interest and at the end little
- You have the certainty of paying off the mortgage
- Lower total interest costs compared to annuity mortgages
Sustainable Mortgages
An increasingly popular option is the sustainable mortgage, also known as a 'green mortgage'. This type of mortgage offers interest rate discounts to homeowners of energy-efficient homes, encouraging sustainable living while providing financial benefits.
Key benefits of sustainable mortgages:
- Interest rate discounts for energy-efficient homes
- Additional financing for sustainability improvements
- Available from major banks including ABN AMRO, Rabobank, and ASR
- Environmental and financial benefits combined
Learn more about sustainable mortgages and available subsidies for energy improvements.
Other Different Types of Mortgages
Until 2013, more mortgage types qualified for interest deduction than just annuity and linear mortgages. Most of these can no longer be taken out as new loans. You can only continue one of them for tax purposes if you took out the mortgage before 31 December 2013.
These older mortgage types include:
- Interest-only (repayment-free) mortgage
- Savings mortgage
- Bank savings mortgage
- Life mortgage (levenhypotheek)
Choosing the Right Mortgage Type
Not sure which mortgage type is best for you? Consider these factors:
Assess Your Financial Situation
Calculate your income, expenses, and how much you can afford. Learn about calculating your maximum mortgage.
Consider Your Future Plans
Think about your career trajectory, expected income changes, and how long you plan to stay in the property.
Understand Tax Implications
Familiarize yourself with mortgage interest deduction rules and how they affect different mortgage types.
Consult an Expert
Work with a mortgage advisor who can provide personalized recommendations based on your situation.
Frequently asked questions
The annuity mortgage is the most common, because it keeps gross monthly payments level and qualifies for mortgage interest deduction. The linear mortgage is the main alternative for those who want lower total interest costs.
With an annuity mortgage your gross monthly payment stays the same throughout the term. With a linear mortgage you repay the same amount of principal each month, so your payments start higher but fall over time and you pay less total interest.
Interest-only mortgages still exist but no longer qualify for mortgage interest deduction if taken out after 2013. They are usually only used for part of a mortgage or by buyers who don't need the tax benefit.
Only annuity and linear mortgages taken out from 2013 qualify for mortgage interest deduction, provided they're repaid in full within 30 years.
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We deliver you 3 mortgage advisors and you can accept the best choice.
Receive quotes from mortgage advisors in your area
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