Linear mortgage (lineaire hypotheek)
With a linear mortgage (lineaire hypotheek) you repay the same amount every month. Because the debt shrinks steadily, you pay less interest and your monthly costs go down.
How it works
The principal is divided by the number of months in the term. You repay that amount each month and pay interest over the remaining debt.
Advantages
- You build equity faster.
- Less total interest paid over the term.
- Decreasing monthly costs.
Points of attention
- The first years are the most expensive.
- Higher initial costs can affect how much you are able to borrow.
Simple fictional example
Suppose the interest rate is 4% and you borrow € 300,000 over 30 years. With a linear mortgage your first gross monthly payment is roughly € 1,830; with an annuity mortgage it is roughly € 1,430. The difference is therefore more than € 400 per month in the beginning.
This is because with a linear mortgage you repay a fixed amount from the very first month and pay interest on the full outstanding debt. With an annuity mortgage you mainly pay interest at the start and repay more slowly.
Over time the interest portion of the linear mortgage decreases. After roughly 12 years you reach the break-even point: from then on the gross monthly cost of the linear mortgage is lower than that of the annuity mortgage. The exact amounts and the timing of the break-even point always depend on the interest rate, the loan amount and the term.
Good to know
Options differ per personal situation and per lender. Always have your situation assessed personally.
Last updated: 27 August 2026