Declaration of intent for your mortgage

What is a declaration of intent?

With a declaration of intent or intention agreement, your employer states that they intend to convert your temporary contract into a permanent contract once it expires. This provides additional security for the mortgage lender. This means you can still buy a house and take out a mortgage with a declaration of intent.

Difference between employer’s statement and declaration of intent
The declaration of intent is part of the employer’s statement, which only needs to be completed if you do not have a permanent contract as an employee. The statement must include an additional signature from the employer.

You can download the employer’s statement including the declaration of intent here.

Declaration of intent example

What does a declaration of intent look like? The declaration of intent consists of two questions and is often formulated as follows:

"If performance remains unchanged and business circumstances do not change, the fixed-term employment contract will be followed by a permanent employment contract upon expiration."

"Will the employment conditions change upon renewal? If so, please explain how."

Is a declaration of intent binding?

In an intention agreement, your employer states that they intend to convert your temporary contract into a permanent contract at a later stage. However, this is based on the condition that your performance remains the same and the company’s circumstances do not change. Unfortunately, a declaration of intent is not legally binding. The term itself indicates that your employer has the intention to offer you a permanent contract. This intention may change at any time. A declaration of intent therefore has no legal value and is not binding for the employer.

Consequences of a declaration of intent for the employer

Since a declaration of intent is not binding or legally valid, there are no consequences for the employer when issuing one. The statement is solely intended to provide the mortgage lender with insight into your (future) income situation.

Requesting a declaration of intent: how does it work?

Do you have a temporary contract and want to know how to request a declaration of intent because you are planning to buy a house? Just like the employer’s statement, you can request the declaration of intent from your employer. If you work for a larger company, it is likely that this must be arranged through the human resources or personnel department. In principle, the declaration of intent is part of the employer’s statement form, so you do not need to request a separate form for it.

A declaration of intent is usually valid for three months.

Mortgage without a declaration of intent

Would you like to apply for a mortgage but cannot obtain a declaration of intent from your employer? In that case, consider the possibilities of Inkomensbepaling Loondienst. This method allows home buyers in employment to use the UWV Insurance Report instead of the employer’s statement when applying for a mortgage. This way, you can still apply for a mortgage without an employer’s statement and without a declaration of intent.