Buying a home in the Netherlands as a sole trader or small firm owner might not be as difficult as you think.

“There are all sorts of options open to you,” says Wouter Hofstee Holtrop, a mortgage specialist with Expat Mortgages who has helped hundreds of freelancers and small business owners to get a mortgage.

“Clients are always telling me that they have heard from friends, or via the internet, that it’s not possible. It is true, the rules surrounding mortgages for entrepreneurs are quite strict, but most individual rules are flexible. It is all about the complete story.”

Later this month, Wouter is hosting a face to face meeting in Amsterdam where the self-employed can ask their questions directly and find out more about their options, particularly if they don’t comply with the standard regulations. Mortgages for the self-employed, he says, are about more than just the numbers.

Working history

It is said, for example, that the self-employed and small business owners need a three-year history to qualify for a mortgage in the Netherlands. “But I have helped clients with a much shorter history here,” says Wouter. “If you read the terms and conditions, you will be told it is impossible. But if you have a strong case, there are far more options open to you.”

Part of building up this picture is making sure you have the documents to prove that your business is sound. That means having your annual reports and your tax returns in order.

“If you don’t have a long history of doing business in the Netherlands, Dutch banks will see you as someone who is starting out, but you may have been running a business back home for 10 years,” Wouter points out. “So if you don’t have the three-year requirement here, we paint a picture showing that you have been in business in England, or Belgium or Germany, for longer.”

Borrowing capacity

Wouter is also keen to establish entrepreneurs’ borrowing capacity early in the process, before they start bidding on property. “We work with a lot of banks on this. My clients may not be your standard employee and they all have their own unique financial histories, but they are super stable in terms of their income. By getting pre-approval, they have a letter from me stating the bank is prepared to fund their mortgage up to X thousand euros when they actually start looking.”

Pre-approval lasts for six months, so if you need to extend it you can. Remember, however, that if you are looking for an extension well into a new fiscal year, you will have to show your new tax return and annual report.

Pre-approval is particularly important in Amsterdam, Utrecht and The Hague because of the shortage of suitable homes, says Wouter. “You will know you can offer say €800,000 for that great apartment because your income has been pre-approved by the bank.”

Are you self employed or do you own a small firm, and do you have questions about your options for getting a mortgage? Join Wouter in Amsterdam on October 29 at 6 pm. Sign up here.