Mortgage without a permanent contract
Is it possible to take out a mortgage without a permanent contract? Yes, it is! Even if you don't have a permanent contract, it can still be possible to get approved for a mortgage. Mortgage providers don't just look at the type of employment contract you have, but they also assess the stability and sustainability of your income. The possibilities of getting a mortgage without a permanent contract depend on your personal situation. The type of employment contract and the declaration of intent are important factors in determining how much you can borrow for your mortgage.
What type of employment contract do you need for a mortgage?
There are several kinds of non-permanent employment contracts with which you can take out a mortgage. So even if you are a flex worker, an on-call worker or if you have a temporary contract, you can buy a house. The following employment contracts are accepted by most mortgage lenders:
- Fixed-term or temporary contract
- Temping contract
- Secondment agreement
- Zero-hours contract
- Min-max contract
Below you will find more information about getting a mortgage with each contract type when you are looking to buy a house without a permanent contract.
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Mortgage with a temporary contract, with a declaration of intent
Mortgage with a temporary contract, with a declaration of intent
Are you looking to buy a house, and do you currently have a fixed-term or temporary employment contract, but are you eligible for a permanent contract? Then you can ask your employer for a declaration of intent. The declaration of intent is part of the employer statement. This document states that if your performance and the company's situation don't change, your next contract becomes a permanent one. Your current salary is used to determine your income.
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Mortgage with a temporary contract without declaration of intent
Mortgage with a temporary contract without declaration of intent
Do you have a temporary employment contract, but are you unable to get a declaration of intent? Then you need an alternative way to determine your future income. The Inkomstenbepaling Loondienst (IBL) lets you use the UWV Insurance Report instead of a declaration of intent. This report gives mortgage lenders the assurance that your income will remain stable in the future. Another option is to use the Labour Market Scan* to assess your market position and (future) earning capacity.
*This page is currently only available in Dutch.
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Mortgage with a temping contract
Mortgage with a temping contract
Even if you are a temp worker, it is possible to take out a mortgage. As a temp or flex worker you can use a perspective statement to apply for a mortgage. This statement is drawn up based on an objective investigation into your future prospects as a temp to secure an income. Additionally, this document gives mortgage providers a realistic insight into your financial situation. In many cases, the perspective statement has the same value as an employer statement. However, an important condition for a perspective statement is that you have worked at least 12 out of the last 14 months.
Attention! A perspective statement can only be issued by a temporary employment agency registered with Stichting Perspectiefverklaring (website only available in Dutch).
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Mortgage with a secondment agreement
Mortgage with a secondment agreement
Do you have a secondment agreement? In most cases you have more stability than other flex-workers. With a secondment agreement, you usually still receive an income even if you do not currently have an assignment. You have a stable income, which means your contract is similar to a permanent one. Sometimes, your secondment agreement is enough for a mortgage application. If additional documents are required, your agency can give you a declaration of intent.
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Mortgage with a zero-hours contract
Mortgage with a zero-hours contract
It can also be possible to get a mortgage if you have a 0-hour contract. The mortgage provider assesses your application based on your average income over the last three years. If your current income (your income in the previous year) is lower than the average over the past 3 years, the lower income is used to determine your mortgage amount.
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Mortgage with a min-max contract
Mortgage with a min-max contract
With a min-max contract you are assured of a minimum and maximum number of work hours. If you have a flexible min-max employment contract, you take out a mortgage. Your guaranteed base income is used to determine your mortgage amount. Any extra income you receive can often be counted as overtime.
How do mortgage providers assess your income when you don't have a permanent contract?
Mortgage providers usually assess the income you receive without a permanent contract based on your average income over the past three years. This timeframe gives an indication of the stability of your income and earning capacity in the future. Documents such as the perspective statement, Labour Market Scan, and UWV Insurance Report to strengthen your position when applying for a mortgage. If you have one of the employment contract types listed above, you can also use the Inkomensbepaling Loondienst.
Without a permanent contract, with tailored mortgage advice
Do you want to apply for a mortgage even though you don't have a permanent contract? Our mortgage advisors look forward to helping you with tailored mortgage advice. Even without permanent employment, there are more options available than you might think! Make an appointment at one of our offices near you.
Frequently asked questions about a mortgage without a permanent contract
It can be quite nerve-wracking to take out a mortgage without a permanent contract. We can imagine that you're filled with questions. Here are some questions other customers have asked us about buying a house without a permanent employment contract. Do you have any other questions? Contact one of our Hypotheker offices.
What is Inkomstenbepaling Loondienst?
Inkomensbepaling Loondienst is an initiative that lets you use the UWV Insurance Report for a mortgage application instead of an employer statement. The UWV Insurance Report is an online document listing your income and work history. You can download the report via Mijn UWV. By using this method you can take out a mortgage without an employer statement and without a declaration of intent. The National Mortgage Guarantee (NHG) and many mortgage providers accept the Inkomensbepaling Loondienst.
What is the Labour Market Scan?
If you are unable to get an employer statement, you can use the Labour Market Scan (Arbeidsmarktscan) to increase your chances of getting a mortgage. Mortgage providers use this scan to determine your current income and your future prospects on the job market. Your likelihood of receiving a future income is taken into account. The Labour Market Scan also takes your age, occupation, education, and the region where you live into consideration. Your chances on the job market are represented by a score between 0 and 100. You need at least 70 points to use the report in the mortgage application process.
*This page is only available in Dutch.
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.
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.
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