Purchasing your home
To become a homeowner, you will need to collect and read a lot of documents. Our job is to make sure the right civil-aw notary and mortgage lender are addressed. Oscar Prent Assurantiën BV proceeds at a national level, which means sufficient contacts and partnerships exist to provide a local network.
Together, we will design the mortgage loan that meets your requirements best. We will compare the terms and conditions of several lenders, requesting a mortgage proposal based on that. The lender will verify your request; Oscar Prent Assurantiën will be presented with your proposal. In most cases, this proposal will be based on salary slips and the employer’s statement.
In order to arrange a mortgage loan, usually your new property will require valuation. This is important for you as well. In addition to the valuation report, an architectural research might be useful. Make sure you are properly advised on the matter.
Many sales contracts include a stipulation obliging the purchaser to leave a security deposit (usually 10% of the purchase price) with the civil-law notary. In most cases, this is a bank guarantee issued by the lender. If you have sufficient private money, you may pay the security deposit on your own.
Mortgages that come with life insurance (e.g. savings-based mortgage, investment-based mortgage) usually require a health check in case you want to insure your life at € 150,000 or beyond. If you want to remain anywhere below € 150,000, completing a medical health certificate will suffice. In case a medical test is required, we will make an appointment with the medical examiner. Your health certificate will be sent off to the lender including a signed mortgage proposal.
National Mortgage Guarantee (in Dutch: NHG)
A mortgage guarantee means that the Homeownership Guarantee Fund (Stichting Waarborgfonds Eigen Woningen) will take over any risk of a compulsory sale. Lenders will avoid possible risks and also they may charge lower mortgage interest rates. Additional conditions will be set in order to qualify for the National Mortgage Guarantee.
The civil-law notary
The deed of transfer and mortgage deed must be executed in the presence of the civil-law notary. Oscar Prent Assurantiën will make sure all documents required are available on time. The civil-law notary will invite you to sign the mortgage deed and deed of transfer. Also you will receive a completion statement. In case you are investing your own capital, you will be invited to transfer the amount involved to the civil-law notary.
Mortgage interest rates are deductible for tax purposes. Other items (e.g. notional rental value, any subsidies) will be added to your income. If tax-deductible expenditure exceeds additions, you will pay too much payroll tax every month. Obviously, this will be settled on your annual tax return. Or you may apply for a provisional income tax refund, to push down your monthly overheads. On request, we will contact the tax authorities on your behalf.
Will and cohabitation contract
For those married or cohabiting, purchasing a home usually means the time has come to prepare a will and/or cohabitation contract. This helps avoid any financial problems in case one of the partners dies or if couples decide to break up. Find out the details from your civil-law notary.
When purchasing a home, the lender will suggest you take out household insurance including liability insurance. Also you need to take appropriate measures in case you should lose (some of) your income due to occupational disability or unemployment. And, you should carefully study your pension provisions while taking out a mortgage.