DGA Financieel Adviseurs

An affordable annuity mortgage through DGA The Hague

For an annuity mortgage too, DGA Financial Advisors is the right place. Together with you we look at which mortgage best fits your situation.

We are fully independent and not tied to any bank or insurer. As a result, you always receive honest and objective advice from us, with sharp rates that are among the lowest in the Netherlands.

You are warmly welcome at our office in The Hague. Would you prefer us to visit you? No problem, we are happy to schedule an appointment.

Clients from Scheveningen, Delft, Zoetermeer, Rijswijk and Wassenaar, among others, have already chosen DGA. We are happy to help you too.

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What is an annuity mortgage?

With an annuity mortgage you pay the same amount every month (unless the interest rate changes). This amount consists of interest and principal. You repay your mortgage in full within the agreed term.

The same amount every month, certainty for the future

Full repayment within the agreed term. You know exactly where you stand.

How exactly does it work?

At the start, your monthly payment consists mainly of interest, with very little principal repayment. As time passes, that balance shifts:

01

Interest gradually decreases

As your outstanding balance becomes smaller, the interest you pay also keeps decreasing.

02

Principal repayment increases

The principal portion of your monthly payment grows as you pay down more of the loan.

03

Fully repaid

At the end of the term, you have repaid the entire amount.

Worked example

Did you know?

With a 30-year term, you typically only reach the halfway point of repayment after about 22 years. You repay the other half in the final 8 years, when you pay much less interest.

Tax benefit

You may (subject to conditions) deduct the interest from your taxes. This delivers a tax benefit, particularly in the early years, when the interest portion of your monthly payments is still high.

Please note

As you repay more of the principal, this tax benefit decreases. Your net monthly payments may therefore rise over time.

Advantages of an annuity mortgage

A simple and transparent mortgage type
Low monthly payments at the start thanks to the tax benefit
Your mortgage is guaranteed to be fully repaid at the end of the term
The same gross amount each month: clear and predictable
Suitable for first-time buyers and movers

Disadvantages to bear in mind

Your net monthly payments rise over time
You repay relatively little in the early years
Over the full term, you pay relatively more than with some other mortgage types

Who is this mortgage suitable for?

People at the start of their career
Those who expect their income to grow later
Financing a second home without interest deduction (e.g. a holiday home)

Frequently asked questions

What is the difference between an annuity and a linear mortgage?
With an annuity mortgage you pay the same gross amount every month. With a linear mortgage you repay the same principal amount each month, which means your total monthly payment gradually decreases. At the start an annuity mortgage is cheaper, but over the full term you pay more interest.
Do my monthly payments really rise over time?
Yes, your net monthly payments gradually rise. This is because you pay less interest over time, and therefore also receive less mortgage interest deduction. The gross amount itself stays the same.
Can I make additional repayments alongside my monthly amount?
Yes, most lenders allow you to make penalty-free additional repayments of 10% to 20% per year. We compare the terms so you get the best deal.
Is an annuity mortgage mandatory for first-time buyers?
Since 2013, an annuity or linear mortgage is effectively mandatory for new mortgages if you want to make use of the mortgage interest deduction. Other types no longer qualify for the tax benefit.
How long does it take to arrange an annuity mortgage?
After the initial advisory meeting you typically receive a proposal within two weeks. The full process from application to signing at the notary takes on average four to eight weeks.

Curious whether an annuity mortgage suits you?

Our mortgage advisors are happy to look at the best option with you. No obligation, at our office or at your home.

Request free advice070 - 355 66 48