Mortgage

Mortgage types in the Netherlands: annuity vs. linear

The two mortgage types available in the Netherlands, and when each makes most sense.

Groundwerk editorial · Updated

In the Netherlands there are two mortgage types with tax deductibility: annuity and linear. Only these types qualify for mortgage interest deduction (maximum 30 years).

Annuity: you pay the same total amount each month (interest + repayment). At first most goes to interest, gradually shifting to repayment. This is the most popular choice due to predictable monthly costs.

Linear: you repay the same amount each month, but interest decreases. You start with higher monthly payments that gradually decrease. Over the full term you pay less interest than with annuity.

Rule of thumb: choose linear if you can handle the higher initial payments — you’ll save thousands in interest. Choose annuity if predictable costs are important. You can also combine both.

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