How to buy a property

• At least 20% equity (maximum of 10% from the 2nd pillar)
• Maximum of 80% financing via mortgage
• Affordability: The running costs for
• mortgage rate 4.5-5.0% of the mortgage amount
• ancillary costs 0.75-1.0% of the purchase price
• amortization costs
• may amount to a maximum of 33% of gross income.

With our Housing & Affordability Calculator, you can assess the financial feasibility of your dream property.

• The mortgage must be reduced to 65% within 15 years or until retirement.
• Direct amortization: The mortgage is continuously reduced through periodic repayments to the bank. This leads to a higher tax burden, however, as interest on debt decline and less can be deducted from taxable income.
• Indirect amortization: Instead of reducing the mortgage directly, you pay into pillar 3a. This way, interest on debt remains tax-deductible.

Purchase offer & price negotiations:

• Purchase offers can be binding or non-binding
• Negotiation windows are created with market analyses, property comparisons, and potential defects to the property
• Reservation in return for a down payment of normally 1-3% of the purchase price

• Purcase contract & notary's office:

• Notarial certification of the purchase contract is a statutory requirement
• Banks and the sellers require an irrevocable promise to pay before the contract is signed

• Entry in the land register & property transfer:

• Only once the entry in the land register is finalized does the buyer become the legal owner
• Until finalization, the seller remains the legal owner