Why do valuations influence the final loan?

In the 2026 Dutch real estate market, valuing a home is no longer a simple formality, but the absolute foundation of financing. Many buyers assume that their income is the only determining factor for the amount of the loan, but the reality is that the bank performs two different tests: a person test (income) and a test on the collateral (the home). The valuation report is the tool that tells the bank how much security the collateral offers. At a time when overbidding is still occurring and sustainability is leaving an enormous mark on home value, the appraiser often sets the ultimate limit of what is financially possible in 2026.

Understanding the relationship between the appraised value and the final loan is crucial to avoid disappointment during the mortgage process. In this article, we analyse why valuation is the key to financing.

The legal loan to value (LTV) limit

The main reason why a valuation affects the loan is the legal limit of the Loan-to-Value ratio. Since the tightening of the rules, a bank may lend a maximum of 100% of the home's market value in 2026.

This often creates a gap between the purchase price and the borrowing capacity. If you buy a home for €450,000 but the independent appraiser sets the value at €430,000, the bank will not provide more than €430,000, no matter how high your income is. You must then finance the remaining €20,000, plus the copper costs, from your own resources. In 2026, we will see that appraisers have become stricter in their comparison with reference properties, so that the appraisal value does not always follow the emotional price that arose during a bid battle.

Risk classes and interest rate surcharges

The valuation not only influences the amount you can borrow, but also the price you pay for that money: the interest rate. Banks work with so-called risk classes or rate groups that are based on the ratio between the loan and the market value.

A valuation that is higher than expected can place you in a lower risk class. For example:

• If your loan is less than 65% of the market value, you fall into the lowest risk category with the sharpest interest rate.
• If the loan is 90% or more of the market value, the bank charges a risk surcharge on the interest rate.

If you have a new valuation carried out during the term of the mortgage in 2026 (for example after a renovation or due to general price increases), this may force the bank to cancel the risk surcharge. As a result, the valuation has a direct impact on your monthly payments over the entire term of the loan.

The influence of sustainability on market value

In 2026, the role of the energy label in the valuation report will be greater than ever. An appraiser not only looks at square meters, but also at energy efficiency. This affects the loan in two ways.

First, a home with a favourable energy label (A or higher) has a higher valued market value, which increases the LTV space. Secondly, in 2026, banks often offer additional financing space above 100% market value when this money is specifically used for energy-saving facilities (EBV). In that case, the appraiser must determine a value 'before' and 'after' renovation. The loan is then based on the market value after renovation, provided that the planned investments actually add value to the property. Without a valuation report that supports this increase in value, the bank will not approve the additional loan for sustainability.

The valuation as protection against being “underwater”

Banks require a valuation to protect themselves, but indirectly, it also protects the borrower. The valuation serves as an objective reality check. In a market where prices may react more erratically to changes in interest rates in 2026, a conservative valuation prevents a buyer from taking out a loan that immediately exceeds the resale value of the home.

Should you have to sell the home in the near future due to unforeseen circumstances, the link between valuation and loan ensures that the chance of residual debt is minimized. The bank uses the valuation to determine the liquidity value: what will the property pay in the event of a forced sale? Although this can sometimes be frustrating for the buyer if the financing just doesn't come around as a result, it is an essential safety mechanism in the Dutch financial system.

Special situations: Renovation depot and new construction

For renovations in 2026, the valuation is the only way to a higher construction depot. The bank lends you the money based on the value that the home receives after the work has been completed.

The appraiser draws up a list of the planned improvements (e.g. a dormer window, new kitchen or extension) and assesses to what extent each euro of investment also adds one euro in value. Often, this isn't 1-on-1; a €50,000 luxury kitchen might only add €25,000 to the market value. The final loan is then limited by this new, future value. New construction often involves working with the foundation costs (land price + construction sum), but here, too, an additional valuation may be necessary if there is a lot of additional work that falls outside the standard contracting agreement.

Validation and data reliability

In 2026, almost all valuation reports will be validated by institutions such as the NWWI. This process ensures that the appraiser must substantiate his value assessment with rock-solid data and comparable sales in the neighborhood.

This validation ensures that the bank can blindly trust the figures. For the borrower, this means that there is little room to 'negotiate' the appraisal value in order to get the loan appropriate. The objectivity of the valuation in 2026 is a barrier to overfinancing, but at the same time a guarantee for stable lending. When an appraiser sets a value that differs from the purchase price, this is a red signal to the bank that the loan is riskier than initially thought, which immediately leads to stricter conditions or a lower loan amount.

The valuation is the bridge between the emotional value of a home and the business reality of financing. In 2026, this document not only determines how much you can borrow, but also the sustainability and costs of your financial future.