Mortgage for entrepreneurs

Why a mortgage works differently for entrepreneurs

With regular employment, income is usually quickly clear. As an entrepreneur, your income depends on the results of your business, which can differ from year to year. Lenders therefore look at a broader picture: how your business is doing, how your results are developing and how stable your income is.

Every lender applies its own rules. One party may view fluctuating results or a shorter track record differently than another. What is possible therefore varies per situation and per lender.

Freelancer (zzp'er) or sole trader

Working as a freelancer or running a sole proprietorship (eenmanszaak)? Lenders usually look at the profit from your business over recent years and how it is developing. Some lenders work with an income calculation by an accredited financial expert.

Some lenders ask for several years of figures; others can work with a shorter entrepreneurial history. Which route suits you depends on your figures and your personal situation.

Only 1 year self-employed?

Have you been an entrepreneur for just one year? That does not automatically mean a mortgage is impossible. There are lenders that also consider starting entrepreneurs, although additional conditions may apply.

Depending on your personal situation and the lender's rules, the assessment can include:

• the results of your business so far;
• the development of your income;
• the financial position and continuity of the business;
• your earlier employment history;
• your salaried income before you started the business;
• the transition from employment to self-employment — for example, whether you continued doing the same kind of work.

Previous salaried income

Did you work in employment before becoming an entrepreneur? In some situations that can be included in the assessment, for example when you continued doing similar work. This does not always happen and not with every lender: it differs per situation and per lender.

DGA or entrepreneur with a BV?

Are you a director-major shareholder (DGA)? Then the assessment is not always based solely on your DGA salary. Depending on your situation and the lender, the results of the BV and any retained profit (overwinst) can also be relevant.

Important to know:

• retained profit is not automatically fully counted as income;
• the method of assessment can differ per lender;
• the financial position and continuity of the business can weigh heavily;
• the final assessment depends on your personal situation and the lender.

Fluctuating results

Does your profit vary per year? That can affect the income used for the calculation. Sometimes an average is used, sometimes the lowest year, and sometimes the trend is considered instead. A good explanation of your figures helps: why was a year stronger or weaker, and what do you expect for the coming period?

Which situation fits you?

• I have just started as an entrepreneur
• I have been an entrepreneur for several years
• I am a freelancer (zzp'er)
• I have a sole proprietorship (eenmanszaak)
• I am a DGA
• I have a BV
• My income varies per year
• I want to buy my first home
• I want to move
• I want to refinance my mortgage
• I want to renovate or make my home more sustainable

Why mortgage advice for entrepreneurs?

• Entrepreneurial income can be assessed differently than salaried income.
• Lenders use different assessment methods.
• Finding a lender that fits your figures can be extra important.
• Every entrepreneur's situation is different; standard answers will not get you far.
• Getting insight into the possibilities upfront brings peace of mind while house hunting.

What Voorne Hypotheekadvies does for you

I take the time for your figures and your plans, and explain in plain language how lenders may view your situation. Because I am independent, I compare providers on interest rates, conditions and on the way they assess entrepreneurial income.

I work from Hellevoetsluis and help entrepreneurs fully online as well, wherever you live in the Netherlands. Advice is available in Dutch or English.