Can I buy a house as a PhD student?
Yes, PhD students can buy a house even when they do not have a permanent contract or do not even get a letter of intent for a permanent contract from the university.
On the one hand there is a large group of PhD students who think that they are not eligible for a mortgage because they do not have a permanent contract. This group continues to pay too much money because they rent a house instead of buying it. Renting is more flexible but a lot more expensive than buying. Especially given the current historically low interest rates!
Also there are PhD students who are already searching for their own property based on the idea that they have a good future perspective because they have a good (educational) background. Nevertheless in practice it often appears that PhD students (and postdocs) have difficulty getting a mortgage. The reason for that is because a mortgage for PhD students does not fit within the standards of the lenders. Another important reason is that many mortgage advisers do not know how the contracts of PhD students within the universities work and therefore can’t make a sound substantiation of your mortgage application. This is completely unnecessary!
Most universities do not give PhD students a letter of intent. The letter of intent implies that your employer declares that he intends to offer you a permanent contract, provided that you continue to function the same and the business conditions remain unchanged.
A mortgage without a letter of intent is not impossible but requires more expertise from the mortgage advisor and depends of course on your personal situation.
Income over recent years
The first option for obtaining a mortgage without a letter of intent is that the mortgage advisor looks at the income of the recent years. For the mortgage, the mortgage advisor has to calculate the average income of the past three calendar years and you must be able to hand over an employer’s statement. The average income is the income that can be taken into account for the mortgage but always to a maximum of the annual income of the last calendar year.
If you want a mortgage without a letter of intent and the average income of recent years is sufficient according to the mortgage standard, then it is even possible to qualify for a mortgage with National Mortgage Guarantee (NHG).
Many PhD students want to buy a house in the first years and don’t have (sufficient) employment history so that the mortgage application does not fit within the standards of the mortgage lender.
Approach V&W Adviseurs
If the income of recent years is not sufficient to obtain the mortgage, we provide a full and comprehensive substantiation of the mortgage application. In 95% of the cases the mortgage will be approved.
We have a lot of experience with PhD students, so we can make a good estimate of the chances of success in advance. We look at the aspects that have a positive effect on the mortgage application. For example: What is the future prospect of the PhD student? What is the discipline? In which phase of the PhD program are you? How does the employer’s statement or employment contract looks like (differs per university)? Is there a Dutch or a foreign nationality? How high is the student debt? Are there any savings? Is there a partner? In which price range do you want to buy? Etcetera.
In short, we are well informed about the possibilities. We dare to claim that if we make a mortgage application, we give you a head start with the lender. We have built up a good reputation with the lenders!
So even if mortgage lenders have refused your mortgage application, there might well be possibilities with other lenders for getting a mortgage with good (interest) conditions.
In short, we know the ins and outs and dare to say that if you do not succeed with us, you will not get a mortgage anywhere! We can offer you a free call or conversation in which we inform you without obligation about the (im)possibilities of your mortgage. We will gladly tell you what is involved in buying a house, but also in choosing the mortgage that suits you best.
You can also download a free brochure on our website with information about buying a house and its financing.
|V&W Adviseurs in short
V & W Adviseurs specializes in advising a mortgage for PhD students (or other academic staff) at universities in the Netherlands. For years, universities referring PhD students and other academic staff to our office. This because the employees and universities experience our added value!