It is a big step to buy a home in the Netherlands. But for entrepreneurs, getting a mortgage is usually associated with a complicated and frustrating process. To the surprise of many international business owners, the extent of documentation required shocks them and even more so that a strong turnover doesn’t necessarily lead to getting a mortgage.
From my point of view, discrimination is rarely the reason. Instead, it is a matter of lending regulations that have difficulties in evaluating the reality of entrepreneurs. Knowing the way Dutch banks operate and realizing where they are wrong can be the factor that decides whether you get turned down or approved.
The Reason Why Dutch Banks Find It Hard to Give mortgages to entrepreneurs
When giving out mortgages, Dutch banks emphasize the stability of the income source. People on a fixed salary are the easiest to assess because their income in the future is predictable. The financial reality of entrepreneurs differs fundamentally from that of employees. Even businesses that are financially sound will have variations in their profits.
Due to their regulations, banks must ensure that the mortgage installments are still affordable when the borrower's financial situation is not that good. This is why entrepreneurial income is very often considered to be "risky", even if long-term prospects are positive. For this reason, most lenders require three years’ worth of income at least before they will give you standard mortgage conditions.
I find their perspective understandable but incomplete. In my view, stability is not about identical monthly figures, but about resilience, structure, and sustainable financial habits over time.
The Evaluation of Your Earnings by Banks
When examining the entrepreneur’s mortgage documents, the banks often require the following:
- Yearly business reports (usually covering the last three years)
- Personal income tax returns
- An accountant's report
- In certain situations, income estimates for the future period
The ability to take a mortgage is most of the time based on the average profit in the last three years. It is very important to note that when profits are going down, banks usually choose to work with the lowest year. This is a point that many entrepreneurs do not realize.
I frequently witness situations in which entrepreneurs with good turnovers are rejected because their profit margins are not stable. On the other hand, entrepreneurs with limited revenue but consistent profits and good equity are granted with fewer challenges. This is not obvious at all, but that’s the way the system is.
Why Profit Should Be Considered More Than Turnover
Many international entrepreneurs focus heavily on turnover. While revenue growth is important, banks primarily assess profit because it reflects the actual disposable income available for mortgage payments. Profit shows how much financial room remains after costs, taxes, and other obligations.
From a lender’s perspective, a business with €80,000 in turnover and a healthy net profit is often safer than one generating €150,000 in revenue with weak margins. Business equity and retained earnings also matter, as they provide financial buffers during less profitable years.
This highlights the importance of sustainable financial thinking. Growth without healthy margins may look impressive, but it does not support long-term homeownership or financial security. For entrepreneurs, stable profits and sufficient buffers are key to a mortgage that remains affordable over time.
The role of your business structure
Moreover, your legal structure influences the way lenders evaluate your risk:
- Zzp (independent professionals without employees): Both business and personal finances are looked at together, thus increasing personal exposure.
- BV shareholders: Performance of the company is evaluated along with the personal income from salary or dividends.
This difference directly influences how much you can borrow and how banks assess risk. That is why choosing the right structure is not only a tax decision, but also a decision that affects your ability to buy a home and plan your life financially.
What This Means for You as an Entrepreneur
Entrepreneurs who plan to do home-buying in the Netherlands should consider the following:
- Better preparation leads to higher approval chances
- Realistic expectations reduce stress and disappointment
- Sustainable financial choices create long-term security, both personally and professionally
At FAON, we support entrepreneurs throughout the entire mortgage process, with a strong focus on sustainability, transparency, and long-term impact. We translate complex bank regulations into clear strategies, helping you build a financial framework that supports both your business and your personal life. Homeownership should be the tool that makes your future stronger, not weaker.
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