What is striking is that many websites give too rosy a picture of these costs. A purchase broker does not cost €2000 and a notary does not cost €500 (source: website Hypotheker). These are rates that do not occur in real life in most regions. An important piece of practical advice: include costs well into your budget.
Below an indication of the most common costs involved in the purchase of a property. We distinguish between:
- costs that you actually always have
- costs which you have optional, and
- cost which really depend on the situation.
| Cost item | When | Indicative costs | Tax deductible |
| Mortgage brokerage fees | Always | Between €3000 and €6000 | Yes |
| Cost of National Mortgage Guarantee | Optional | 0.6% of the total mortgage amount. | Yes |
| Purchase agent | Optional | Between €3000 and €7000 | No |
| Appraisal | Always | Between €800 and €1000 | Yes |
| Building inspection | Optional | Ca. €400 | No |
| Bank guarantee | Optional | Approx. €275 | No |
| Notary fees | Always | Between €1300 and €2000 | Partly |
| Interpreter at notary’s office | Required if buyer does not speak Dutch speaks | Ca. €350 | No |
| Transfer Tax | Always | 2% of the purchase price | No |
| Renovation costs | Optional | Depends entirely on the property and the requirements. | Yes via construction deposit |
| Unforeseen costs | Always | With every home, even new construction are always unforeseen costs. Advice: keep at least 1.5% of the purchase price in cash behind the hand for this. | No |
A real-world cost example
An English-speaking client purchased a €400,000 home. His total cost is as follows:
| Brokerage Fees Mortgage | € 4.000 |
| Purchase agent | € 4.500 |
| Valuation report | € 800 |
| Building inspection | € 400 |
| Notary | € 1.500 |
| Interpreter at notary’s office | € 350 |
| Transfer Tax | € 8.000 |
| Contingencies (budget) | € 6.000 |
| Total: | € 25. 550 |
This article is purely indicative. We take into account in this article with the most common costs. There are many more costs that come with a home may be involved such as ground lease buyouts, construction interest, etc. In doing so, let yourself always be well informed by your mortgage advisor and/or broker.