New-build mortgage: how to arrange the financing for your new home
You've found your dream home — it just hasn't been built yet. Buying a new-build property is exciting: you have a say in how it looks, there are no hidden defects, and the home is energy-efficient from day one. But the financing works differently from buying an existing property. No transfer tax (overdrachtsbelasting), but a construction deposit (bouwdepot). No key handover at the notary on completion day, but a long period of waiting and building. We'll explain exactly how a new-build mortgage works and what to watch out for.
What is a new-build mortgage?
A new-build mortgage is a mortgage for a property that is yet to be built. Instead of a standard purchase agreement, you sign a purchase and construction agreement (koop-aannemingsovereenkomst, or KAO). This document sets out what you are buying, the agreed price, and the expected completion date.
The key difference from a regular mortgage: the contractor builds the property in stages, and you pay in stages too — via a construction deposit (bouwdepot). The mortgage is arranged before construction begins, but the money sits in a blocked account until the contractor submits an invoice. While funds remain in the deposit, you receive an interest credit from the lender. You pay mortgage interest only on the amount already paid out to the contractor. This keeps your costs manageable during the build.
Why choose a new-build property?
New-build homes offer a number of concrete advantages over existing properties:
- No transfer tax: with new-build you pay no 2% transfer tax (overdrachtsbelasting), saving you thousands of euros.
- High energy label: new-build homes are well insulated by default and meet strict sustainability requirements. This means lower energy bills and the right to borrow more.
- Customisation options: you can influence the layout and finish of your home through additional and reduced work (meer- en minderwerk).
- Low maintenance: in the first years you have virtually no maintenance costs and you benefit from structural guarantees.
- Finance additional costs: certain additional costs can be included in your mortgage, so you need less of your own savings.
The construction deposit (bouwdepot): how does it work?
The construction deposit is a blocked account where the lender holds the funds for the build. After each construction phase, the contractor submits an invoice. You approve the invoice and the bank releases the payment from the deposit directly to the contractor.
On the balance still held in the deposit, the lender pays you an interest credit — usually equal to the mortgage interest rate you are paying. In practice, you only pay net interest on the portion of the mortgage already disbursed to the contractor.
When the property is completed, the deposit closes. Any remaining balance is used to reduce the outstanding mortgage.
New-build mortgage in 6 steps
- Financial check
Before you register for a project, find out how much you can borrow. A mortgage adviser does a quick check based on your income and situation — giving you a stronger position in any ballot. - Sign the purchase and construction agreement (KAO)
You sign the KAO with the property developer. You typically have three weeks after signing to arrange your financing. - Mortgage advice and offer
We find the best mortgage type and lender for your situation. We request an offer with a long validity period so you have enough time for the build. - Completing the mortgage
The mortgage deed is signed at the notary. The funds go into the construction deposit. You start paying interest from this point, even before you move in. - The build
The contractor builds and submits an invoice per phase. We keep you informed and guide you through the deposit process. - Completion
You inspect the property, sign the completion report, and receive the keys. From this moment, your new home is yours.
Double housing costs and the commitment fee (bereidstellingsprovisie)
Do you already own a property? During the build you will likely be paying two sets of housing costs: your current mortgage plus interest on the new mortgage. This is a temporary but sometimes significant expense. We always map this out clearly so you are never caught off guard.
Another cost to be aware of is the commitment fee (bereidstellingsprovisie). New-build projects take an average of twelve months to complete, while a mortgage offer is typically valid for only six months. If the offer expires before the property is ready, many lenders charge a commitment fee to extend it. The amount varies by lender. We monitor your offer's validity and make sure you don't pay more than necessary.
Do you have equity in your current home? You can take out a bridging loan (overbruggingshypotheek) during the build to unlock that equity for your new property.
What are the costs with new-build?
Costs you can include in the mortgage
- Construction sum (aanneemsom)
- Additional work (meerwerk) you commission
- Mortgage advice fee
- Notary costs for the mortgage deed
- NHG guarantee fee (borgtochtprovisie), if applicable
Costs you pay yourself
- Painting, flooring and window coverings (unless included)
- Garden landscaping
- Valuation costs
- Any commitment fee (bereidstellingsprovisie)
- Double housing costs during the build
Borrow more thanks to sustainability
New-build homes come with a high energy label as standard — often A++ or higher. That is good for your wallet and good for the environment. It also has a direct financial benefit: you may borrow up to € 50,000 more than your income alone would allow. This extra headroom is intended to cover any additional costs for sustainability measures.
Some lenders also offer an interest rate discount on new-build mortgages. We compare the market for you and make sure you get the full benefit of every advantage that applies to your situation.
National Mortgage Guarantee (NHG) for new-build
If the construction sum falls within the NHG limit (NHG-grens), you can also use the National Mortgage Guarantee (Nationale Hypotheek Garantie) for a new-build property. NHG acts as a safety net if unforeseen circumstances make it impossible to keep up with mortgage payments, and entitles you to a lower interest rate.
The NHG limit is set each year. We always check whether your situation qualifies and what it means for you in practice.
Frequently asked questions about the new-build mortgage
When should I arrange my mortgage for a new-build property?
After signing the purchase and construction agreement (KAO), you typically have three weeks to finalise your financing. But start earlier: a financial check before registering for a project is smart — it tells you how much you can borrow and prevents any surprises down the line.
Do I pay mortgage costs before the property is completed?
Yes. Once the mortgage deed is signed, interest starts to accrue. However, on the portion still held in the construction deposit you receive an interest credit from the lender. In practice, you only pay net interest on the amount already paid out to the contractor.
What if the construction project is delayed?
If there is a delay, your mortgage offer may expire before the property is ready. You can extend the offer, but many lenders charge a commitment fee (bereidstellingsprovisie) for this. We monitor your offer's validity throughout the build and alert you in good time so you avoid unnecessary costs.
Can I get NHG on a new-build mortgage?
Yes, provided the total costs (construction sum plus additional costs) fall within the current NHG limit. NHG entitles you to a lower interest rate and provides a financial safety net in case of unforeseen circumstances. We always check this as part of our advice.
How much can I borrow for a new-build property?
This depends on your income, the energy label of the property, and your personal situation. For a new-build home with a high energy label (A++ or higher), you may borrow up to € 50,000 more than your income alone would normally permit. Want to know what is possible for you? Book a consultation and we will work it out together.
What is additional work (meerwerk) and can I finance it in my mortgage?
Additional work (meerwerk) refers to customisations you commission on top of the standard build — for example an extension, a premium kitchen, or extra power sockets. In many cases this can be included in your mortgage, as long as the total remains within lending limits. Your mortgage adviser will assess what is possible in your specific situation.
Ready to arrange your new-build mortgage?
A new-build mortgage has its share of moving parts. We know them all. From the first financial check to the handover of the keys: we guide you through every step. Personal, independent, and with no surprises.