Real estate
Mortgage
Arranging a mortgage: clarity and certainty
When people talk about a mortgage, they often mean the loan taken out to purchase a home. Legally speaking, however, a mortgage is something different. A mortgage is the right that you grant to a bank or other lender as security for the repayment of a loan.
If interest or repayments are not paid, this right gives the lender the option to sell the home in order to settle the outstanding debt. The mortgage right offers the creditor additional security and therefore often makes it possible to borrow money on more favourable terms.
A mortgage right is usually established to finance a home, but can also be used as security for, for example, a loan from a family member, a guarantee or an existing debt. In some situations, a mortgage on a loan within the family or from your own company can also offer tax benefits.
The mortgage deed
A mortgage deed is required to establish a mortgage. This is an official document drawn up and signed by the notary. All agreements are legally recorded in this deed. Our notaries ensure that all legal aspects are carefully checked and correctly processed. Such as:
- the details of the lender;
- the amount of the loan;
- the collateral on which the mortgage right is established;
- any additional conditions;
- the registration with the Land Registry (Kadaster);
- the disbursement of the funds.
Guidance from start to finish
Taking out a mortgage involves a great deal. We guide you throughout the entire process: from checking the documents to drawing up and signing the mortgage deed and handling the transfer of funds.
This way you can be sure that everything is properly arranged legally, and you can confidently take the next step in purchasing or financing your home.
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Frequently asked questions
When you buy a house, you become the owner of the plot and the land on which the home stands. When you buy a home with leasehold, the home becomes yours but the land remains the property of the original owner. As compensation for the land, you then have to pay ground rent (erfpachtcanon).
In addition to the amount you borrow, the deed includes an increase for interest and costs. This serves as security for the bank. In the event of a forced sale, they can then also recover their costs. A so-called increased registration may also be included in the deed. This allows you, for example, to borrow more in the future for a renovation without having to go back to the notary.
You do not pay interest on the increased amount. You only pay interest on the amount actually borrowed. In a forced sale, the bank cannot claim more than the amount you actually borrowed plus the costs incurred.
Pursuant to the Anti-Money Laundering and Counter-Terrorist Financing Act and the secondary legislation arising from it (the ‘WWFT’), we are required to record certain details of our clients. In connection with this legal obligation, we ask you a number of questions about your identity in our questionnaire.
In addition, the Dutch government has imposed on us the obligation to report unusual transactions and to investigate the organisational structure and the source of funds.
We understand that you may not like providing this information. However, this obligation to ask for information was not devised by us but is a consequence of the law. As a result, even if we have known you for years and feel good about the transaction, we are required to verify the source of funds. We ask all of our questions in order to put your file in order and allow the transaction to proceed. Please also bear in mind that we may need to ask you to provide further relevant documentation and specifications.
