In the past weeks, mortgage interest rates in the Netherlands have increased sharply. Average rates for a 10-year fixed mortgage rose from 3.6% to 4.1%, one of the fastest jumps in the past decade (source: DNB, March 2026). Many expats are asking how this will affect borrowing capacity, monthly costs, and housing prices.
What’s driving the increase?
Global uncertainty, including the conflict in Iran, has contributed to higher energy prices and inflation. Although Central banks, including the ECB, have not yet raised interest rates, the rates on the capital market are already anticipating inflation pressure, which will likely increase the Central bank rates. This already directly influences Dutch mortgage rates. “Rising energy prices and inflation increase borrowing costs, which can reduce buyers’ mortgage capacity,” notes Serge, our mortgage advisor.
Impact on expat buyers
- Higher rates = lower borrowing power: A 0.5% increase in interest could reduce borrowing capacity by 5%, depending on income.
- Housing prices: With higher borrowing costs, demand may slow, potentially moderating price growth in 2026. Banks may revise earlier projections downward accordingly.
- Priority and early planning: For expats using services like our Priority Service, early mortgage approval can lock in lower rates before further hikes.
Planning for 2026
Expats should evaluate their options:
- Locking interest rates before winning the bid
- Fixed-rate vs. variable-rate mortgages
- Using the 30% ruling and Box 1/Box 3 structuring
Rising interest rates affect affordability, borrowing capacity, and market expectations. Early planning, professional advice, and strategic mortgage structuring help expats navigate 2026’s market with confidence.
Our advisors continuously monitor rate changes and housing market developments to provide tailored guidance. Schedule a consultation to see how rising rates impact your buying power.
You don’t have to figure this out alone.
We’ll guide you step by step, all the way to your new home.
