How do you calculate whether you can afford a house?

The dream of owning your own home does not start with the viewing, but with the calculator. In a market where house prices remain high and interest rates fluctuate, a thorough financial analysis is essential. It's not just about what the bank wants to lend you, but above all about what you can miss every month without compromising your quality of life.

Calculating your budget is the sum of your income, your debts, your own investment and the additional costs. In this article, we walk through the process step by step, so that you can enter the housing market with a realistic budget.

Step 1: Determine your maximum mortgage

The first factor is your borrowing capacity. Mortgage lenders in the Netherlands have strict rules to prevent people from getting too deeply into debt.

Income and the housing rate

The bank looks at your gross annual income (including vacation pay and fixed bonuses). The so-called “housing quote” determines what percentage of income you can spend on housing costs. The higher your income, the higher this percentage.

Please note: If you buy with a partner, the second income in 2026 fully counts (100%) when calculating the maximum mortgage.

The impact of debt

Debt has a leverage effect on your maximum loan, but in the wrong direction. Every euro you pay each month in debt cannot be spent on a mortgage.

• Student debt: Although the rules for DUO loans have been relaxed, the monthly repayment obligation still counts.
• Consumer credit: A private lease car, credit card debt, or even an “installment” phone subscription significantly lower your maximum mortgage.

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Step 2: Own money and “Buyer costs”

Since 2018, you can borrow a maximum of 100% of the market value of the home in the Netherlands. This means that you have to pay all additional costs out of pocket.

What are the costs of copper (k.k.)?

On average, you should expect 4% to 6% of the purchase price in additional costs. With a home worth €400,000, we are therefore talking about €16,000 to €24,000 in our own money. The most important posts are:

• Transfer tax: In 2026, investors will pay the top prize (10.4%), but if you are going to live in the house yourself, this is 2%. Are you under 35 and buying your first home below the NHG limit? Then you may be eligible for the exemption (0%).
• Notary fees: For the deed of delivery and the mortgage deed.
• Appraisal costs: Needed to determine the market value for the bank.
• Brokerage fees: When you hire a buying agent.
• Mortgage advice: The costs for the advisor who arranges your loan.

Step 3: Loan-to-Value and Market Value

It's a common pitfall: you bid €420,000 on a home for sale for €400,000, but the appraiser sets the value at €405,000. Because you can only borrow 100% of the market value, you have to pay the remaining €15,000 (the difference between your bid and the valuation) yourself, on top of the copper costs. So you should always have a buffer of your own money for a possible “ban”.

Step 4: The monthly affordability test

This is the most important step. The bank calculates with what is legally allowed, you must calculate with what is comfortable for you.

Gross versus Net

The gross monthly payment is the amount that the bank collects. Because mortgage interest is in many cases tax deductible (HRA), your net monthly payments are lower.

• Annuity mortgage: You pay the same amount each month. In the beginning, this mainly consists of interest, and at the end mainly of repayment.
• Linear mortgage: You pay the same amount each month. Your costs are high in the beginning, but fall over the term.

Don't forget the other housing costs

Housing is more expensive than just the mortgage. As an owner, you will have to deal with costs that you did not have as a tenant:

1. VvE contribution: When you buy an apartment (an average of €150 - €300 per month).
2. Home insurance: Mandatory for your mortgage.
3. Municipal taxes: OZB (Property Tax) for owners is higher than for tenants.
4. Maintenance reserve: The rule of thumb is to set aside 1% of the home value annually for maintenance (painting, roof, boiler).

Step 5: An example calculation

Suppose you have a combined gross annual income of €85,000.

• Maximum mortgage: Approximately €380,000 (depending on interest rate).
• House price: €375,000.
• Required own money: 5% k.k. = €18,750
• Monthly expenses (Annuity, 4% interest rate): Gross approximately €1,815. After tax refund, net: approximately €1,450.

Ask yourself: after those €1,450 + €400 (GWL/insurance/taxes) = €1,850 per month, is there enough left for shopping, vacations and your hobbies?

Final verdict: Stay realistic

Buying a home is an emotional process, but the calculation must be purely rational. Make sure you don't become “poor at home”: having a beautiful home but no money left over to have a cup of coffee outside the door.

Tips for success:

1. Request a “mortgage certificate”: Many advisors do this for free. It shows sellers that you've checked your finances.
2. Take into account the future: Do you have plans to expand your family or do you want to work less? Then calculate whether the loads are still portable.
3. Build a buffer: Don't buy until the very last euro. There are always unforeseen costs when furnishing or moving.

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