Mortgage without a permanent contract
Even if you do not have a permanent contract, for example, if you have a fixed-term contract, you can still take out a mortgage. Your options depend on your personal situation. The type of contract you have plays an important role, as does an employer’s declaration of intent. This information is necessary to determine the maximum mortgage amount.
There are various options for buying a house without a permanent contract. Do you currently have no income? Unfortunately, in that case, it is not possible to take out a mortgage. A mortgage without income is considered too great a risk for mortgage lenders.
Below, we explain the possibilities for obtaining a mortgage for each type of contract when buying a house without a permanent contract.
Mortgage with a fixed-term employment contract, with a declaration of intent
Do you have a fixed-term contract but are eligible for a permanent contract and would you like to buy a house? Then you can ask your employer for a declaration of intent. A declaration of intent is part of the employer’s statement. It states that if you continue to perform as you currently do and the company’s circumstances do not change, your next contract will be a permanent one. To determine your income, your current salary is taken into account.
Mortgage with a fixed-term contract without a declaration of intent
Inkomensbepaling Loondienst is a method that allows home buyers in employment to use the UWV Insurance Report instead of the employer’s statement when applying for a mortgage. The UWV Insurance Report is a digital document containing salary and employment history, which can be downloaded via My UWV. This means you can apply for a mortgage and buy a house without an employer’s statement or a declaration of intent. Increasingly, mortgage lenders, NHG, and financial advisory software providers are embracing Inkomensbepaling Loondienst. This is beneficial for the ease and speed of the mortgage application process.
In addition to Income Determination for Employees, as a flexible or on-call worker, you can also use the Labour Market Scan. This assesses your labour market position and earning capacity for the next five years. This increases your chances of obtaining a mortgage.
Mortgage for flexible workers through an employment agency
As a temporary worker, you also have a chance of securing a mortgage. If you are a flexible worker with an agency contract, you can use a perspective statement to apply for a mortgage. This statement assesses your future earning potential as a flexible worker. The document demonstrates that an objective assessment has been made of your future labour market position and earning capacity. This provides mortgage lenders with the confidence that a realistic estimate has been made. The perspective statement holds the same value as an employer’s statement with major mortgage lenders.
A perspective statement can only be issued by an employment agency registered with the Stichting Perspectiefverklaring. The register can be consulted at www.perspectiefverklaring.nl. Be sure to contact the consultant at the employment agency where you work. The consultant can inform you whether the agency is registered with the Stichting Perspectiefverklaring and how the process works.
Mortgage with a zero-hours contract
It is possible to take out a mortgage with a zero-hours contract. The mortgage lender will assess your average income over the past three years. If your current or most recent year’s income is lower than the average income of the past three years, the lower recent income is generally used for calculation. Additionally, the industry in which you work is considered when determining the maximum mortgage amount.
On the employer’s statement for someone with a zero-hours contract, the gross salary must be stated as 0 euros. The income can be included as overtime or additional hours worked.
Frequently asked questions about a mortgage without a permanent contract
I have recently become self-employed. Can I take out a mortgage?
A mortgage as a self-employed entrepreneur is certainly possible, even if you cannot yet provide three years of financial records. In that case, a test income is determined based on the average income over the past three calendar years.
Can I take out a mortgage if my partner does not have a permanent contract?
Yes, a mortgage is possible even if your partner has a temporary contract. Schedule an appointment for tailored advice.
Is a mortgage without employment possible?
Only in exceptional cases is a mortgage without income from employment possible. In general, mortgage lenders consider applicants without employment too great a risk.
What if I start a new job during my mortgage application?
It is not advisable to change jobs during your mortgage application. Mortgage lenders often consider this a risk because you are usually subject to a probationary period. This means your mortgage application may be rejected if you accept a new job in the meantime. The wisest course of action is to change jobs only after the mortgage has been finalised.