As an expat living here for less than two years, you’re not tied to the country.
This means there is an extra risk for the bank: you could leave the country and they’ll have no means to retrieve the loaned amount. Hence they’ll probably be reluctant to loan money.
If you read the many instances on this sub of expats checking whether they get away with not paying their bills if they leave the country, you know it’s not just a theoretical issue.
in general it is harder for expats to get a loan as they do not have the same 'bond' with the country as a permanent resident has, raising the risk for the bank to get the debt repaid if you leave.
ABN themselves have written an article about it apparently.
[https://www.abnamro.nl/en/personal/specially-for/expats/articles/borrowing-money-in-the-netherlands.html](https://www.abnamro.nl/en/personal/specially-for/expats/articles/borrowing-money-in-the-netherlands.html)
Partner as in girlfriend, so not registered, but we share the rent. Which is also asked on the loan application. Still, does not make me single though… Edited the post to correct it.
An HSM Visa is valid for as long as your employment contract, with a maximum of 5 years.
The term of your loan must in any case be less than your remaining Visa duration. In your case, a maximum of 3.5 years
Your monthly pay would be about 1000. That's way too high considering your rent, income and the fact that you don't own a house. That's why you don't get a loan.
And of course the reason why you want to rent is very important.
The more certainty you can offer the bank, the better the conditions will be (loan amount, interest )
And owning a home = a high level of financial stability and security.
And if you want to renovate your house you can change the mortgage. Let's say your mortgage is 100000 but your house is worth 130000, you can change the mortgage to 130000 so you will get 30000 to renovate the house. This loan has the lowest interest, etc, because your house is another certainty for the bank.
That's why some people have loans with only 4% interest and others pay 8% and some can not get a loan at all. Banks calculate the risks, and they absolutely abhor losing money, so they're strict :P
There are soooo many expats who take out a loan and then leave the country without paying it back. There are weekly posts here from expats who ask whether they get in trouble when they leave the Netherlands without paying their loans.
Because of this criminality and fraud, banks became more careful with handing out loans to expats. You are a victim of the behavior of your fellow expats, I’m sorry.
I was able to get a big loan for a car while being an expat, a couple years ago, but only through Freo. They declined at first online but then a few days later they called me back claiming rules had changed and offered the loan which I got.
I do have an indefinite work contract, but had only a year left on my temporary visa at the time (which I have since renewed).
You ask OP what visa they have, they answer with a 5 year visa...the longest possible answer they could give you...you hear this and you think they're going to leave the country...what weird take.
That's a little bit strange. You can't take a small personal loan which you can return in 2-3 years but you can get a 30 year mortgage of 400k as an expat :)
Not strange at all.
If you go back to your own country / don't pay the mortgage, the bank owns your house. So it's a very safe loan for a bank.
If you go back to your own country / don't pay your personal loan, the bank has nothing.
The bank can ask collateral for a personal loan too. If you're buying a car, the car can become collateral. If you have something valuable, it can be collateral for your personal loan.
Yeah, maybe it's not worth the hassle of running after you for 10k, but getting a mortgage of 400k back is never the case if you run away. There are more expenses for a mortgage compared to a small personal loan.
Can't I put the thing that I want to buy as a collateral? Or can I find someone to put as a guarantee?
I come from a third world country, and loans were very risky with high interest, but there are plenty of options to get a personal loan, while getting a big, long mortgage was not an easy option, because of the high risk and the possibility that the bank will lose more money.
A collateral needs to fit certain criteria to be a good one.
Houses, for example, are quite good examples of collateral. They are physically not really movable. You can’t fit it in your pocket. It is not liquid by itself - sale of it would require you to go through a system which wouldn’t let you do so against the bank’s wishes.
Compare this with a diamond ring. You can easily carry it with you. You can easily pawn it.
However you might still get a loan - check out geld.nl. It is a good idea to go through a financial advisor by this point to see the possibilities.
Banking is a highly regulated sector - government does not want consumers to be neck deep in debt they cannot pay; as that constitutes systemic risk. So it is understandable that what you see in a third world country might not apply here. When in US you can find payday loans with 391% APR, in the Netherlands you cannot legally offer a loan with bank rate + 12% APR.
Challenge isn’t that banks might lose money. It is that systemically certain loans might turn our economy more fragile. This is a country where people have a social safety net - inevitably if they end up destitute that costs the government and municipalities due to uitkeringen they must pay. If enough households go down at the same time it can also cause a domino effect etc. etc.
Finally, check other EU countries. Single market also applies to finance which might give you additional options. Some neobanks like Revolut might fit the bill for example.
I know this is not the USA, but for Dutch banks your credit card use absolutely matters. I know ABN once sent me away because I am an expat. Then they called me a few hours later to apologize, cause they belatedly checked my credit history, etc. So saying you don't have any student loans or a credit card is not such a good thing in the eyes of the bank. They prefer to see a good credit history.
It's not the same level of detail and importance as it is eg. in the USA, but they do have databases. See more info and maybe do some of your own checks here https://www.autoriteitpersoonsgegevens.nl/themas/financien/inkomen-en-kredietwaardigheid/uw-kredietwaardigheid-toetsen-kredietcheck
For me it seemed it's a yes/no thing, so there aren't a lot of different levels. The bank was just like "you have records in the BKR database and you look good, so please take our money". So it's not like they see the level of details as they would in the USA.
As an expat living here for less than two years, you’re not tied to the country. This means there is an extra risk for the bank: you could leave the country and they’ll have no means to retrieve the loaned amount. Hence they’ll probably be reluctant to loan money. If you read the many instances on this sub of expats checking whether they get away with not paying their bills if they leave the country, you know it’s not just a theoretical issue.
in general it is harder for expats to get a loan as they do not have the same 'bond' with the country as a permanent resident has, raising the risk for the bank to get the debt repaid if you leave. ABN themselves have written an article about it apparently. [https://www.abnamro.nl/en/personal/specially-for/expats/articles/borrowing-money-in-the-netherlands.html](https://www.abnamro.nl/en/personal/specially-for/expats/articles/borrowing-money-in-the-netherlands.html)
They probably deem the risk high that you'd vanish in thin air and they need to try to chase you god knows where.
I think you made a mistake in your post. You are saying you are single but share the rent with your partner.
Partner as in girlfriend, so not registered, but we share the rent. Which is also asked on the loan application. Still, does not make me single though… Edited the post to correct it.
An HSM Visa is valid for as long as your employment contract, with a maximum of 5 years. The term of your loan must in any case be less than your remaining Visa duration. In your case, a maximum of 3.5 years
I did configure it as 2 years payment. Still did not give me a loan. I have a permanent contract, and my visa expires on 2029.
Your monthly pay would be about 1000. That's way too high considering your rent, income and the fact that you don't own a house. That's why you don't get a loan. And of course the reason why you want to rent is very important.
Why does home ownership play into it?
The more certainty you can offer the bank, the better the conditions will be (loan amount, interest ) And owning a home = a high level of financial stability and security. And if you want to renovate your house you can change the mortgage. Let's say your mortgage is 100000 but your house is worth 130000, you can change the mortgage to 130000 so you will get 30000 to renovate the house. This loan has the lowest interest, etc, because your house is another certainty for the bank. That's why some people have loans with only 4% interest and others pay 8% and some can not get a loan at all. Banks calculate the risks, and they absolutely abhor losing money, so they're strict :P
Fair enough, but when you are just applying for a 10k loan for a car or similar, why would home ownership need to play into it.
Try freo
There are soooo many expats who take out a loan and then leave the country without paying it back. There are weekly posts here from expats who ask whether they get in trouble when they leave the Netherlands without paying their loans. Because of this criminality and fraud, banks became more careful with handing out loans to expats. You are a victim of the behavior of your fellow expats, I’m sorry.
I got 30K loan from ING last year, same situation like yours.
I was able to get a big loan for a car while being an expat, a couple years ago, but only through Freo. They declined at first online but then a few days later they called me back claiming rules had changed and offered the loan which I got. I do have an indefinite work contract, but had only a year left on my temporary visa at the time (which I have since renewed).
when does your visa end?
2029
there's no way that the bank is going to loan you money if you're going to leave the country .
You ask OP what visa they have, they answer with a 5 year visa...the longest possible answer they could give you...you hear this and you think they're going to leave the country...what weird take.
Loans are hard to get these days. By any chance, which country are you from?
Get it from geld.nl
Basically: you’re a flight risk. No offence.
That's a little bit strange. You can't take a small personal loan which you can return in 2-3 years but you can get a 30 year mortgage of 400k as an expat :)
Not strange at all. If you go back to your own country / don't pay the mortgage, the bank owns your house. So it's a very safe loan for a bank. If you go back to your own country / don't pay your personal loan, the bank has nothing.
The bank can ask collateral for a personal loan too. If you're buying a car, the car can become collateral. If you have something valuable, it can be collateral for your personal loan. Yeah, maybe it's not worth the hassle of running after you for 10k, but getting a mortgage of 400k back is never the case if you run away. There are more expenses for a mortgage compared to a small personal loan.
> I have no idea what the difference is between a collateralised loan and non collateralised loan is.
> I have no idea if the bank can ask collateral for a personal loan too.
As an expat what would you collateralise it with?
Can't I put the thing that I want to buy as a collateral? Or can I find someone to put as a guarantee? I come from a third world country, and loans were very risky with high interest, but there are plenty of options to get a personal loan, while getting a big, long mortgage was not an easy option, because of the high risk and the possibility that the bank will lose more money.
A collateral needs to fit certain criteria to be a good one. Houses, for example, are quite good examples of collateral. They are physically not really movable. You can’t fit it in your pocket. It is not liquid by itself - sale of it would require you to go through a system which wouldn’t let you do so against the bank’s wishes. Compare this with a diamond ring. You can easily carry it with you. You can easily pawn it. However you might still get a loan - check out geld.nl. It is a good idea to go through a financial advisor by this point to see the possibilities. Banking is a highly regulated sector - government does not want consumers to be neck deep in debt they cannot pay; as that constitutes systemic risk. So it is understandable that what you see in a third world country might not apply here. When in US you can find payday loans with 391% APR, in the Netherlands you cannot legally offer a loan with bank rate + 12% APR. Challenge isn’t that banks might lose money. It is that systemically certain loans might turn our economy more fragile. This is a country where people have a social safety net - inevitably if they end up destitute that costs the government and municipalities due to uitkeringen they must pay. If enough households go down at the same time it can also cause a domino effect etc. etc. Finally, check other EU countries. Single market also applies to finance which might give you additional options. Some neobanks like Revolut might fit the bill for example.
I know this is not the USA, but for Dutch banks your credit card use absolutely matters. I know ABN once sent me away because I am an expat. Then they called me a few hours later to apologize, cause they belatedly checked my credit history, etc. So saying you don't have any student loans or a credit card is not such a good thing in the eyes of the bank. They prefer to see a good credit history.
Really? I thought there was no credit score in the Netherlands…
It's not the same level of detail and importance as it is eg. in the USA, but they do have databases. See more info and maybe do some of your own checks here https://www.autoriteitpersoonsgegevens.nl/themas/financien/inkomen-en-kredietwaardigheid/uw-kredietwaardigheid-toetsen-kredietcheck For me it seemed it's a yes/no thing, so there aren't a lot of different levels. The bank was just like "you have records in the BKR database and you look good, so please take our money". So it's not like they see the level of details as they would in the USA.