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Mortgage types: annuity, linear, interest-only (2026)

In short

Dutch mortgages come in three forms. An annuity mortgage (annuïteit) has equal monthly payments — mostly interest early, mostly principal later. A linear mortgage (lineair) repays equal principal each month, so payments start higher and fall over time, and you pay less total interest. Interest-only (aflossingsvrij) pays only interest and never repays — but it earns no mortgage interest relief for loans taken since 2013, and lenders cap it well below full value.

How they differ

Annuity is the default: a stable payment that's comfortable early on, at the cost of more total interest and slow early repayment. Linear costs more in the first years but builds equity faster and is cheaper over the full term. Interest-only keeps the monthly payment lowest but the debt never shrinks, so you carry the full loan to the end.

The tax catch

Mortgage interest relief (hypotheekrenteaftrek) only applies if the loan is repaid in full via an annuity or linear schedule within 30 years. Interest-only loans taken out from 2013 onward do not qualify for relief, which is why they're usually a top-up (often max 50% of value), not the whole mortgage. The calculator lets you switch type and toggle relief to see the effect.

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Frequently asked

Which is cheaper, annuity or linear?
Linear costs less total interest and builds equity faster, but has higher payments in the early years. Annuity spreads the cost evenly, which most buyers prefer.
Does interest-only get mortgage interest relief?
Not for loans taken since 2013. Only annuity or linear mortgages repaid within 30 years qualify for hypotheekrenteaftrek.
Can I mix mortgage types?
Yes. Many buyers combine an annuity or linear part with a smaller interest-only part (typically capped around 50% of value) to lower the monthly payment.

Related guides

Startersvrijstelling: the first-time buyer exemptionOverdrachtsbelasting: Dutch transfer taxKosten koper (k.k.): the real cost of buyingHypotheekrenteaftrek: mortgage interest reliefNHG: the National Mortgage GuaranteeBox 3: Dutch wealth taxEigenwoningforfait: the home-ownership levyErfpacht: Dutch ground leaseWOZ value: the municipal valuationOZB: municipal property taxVvE: the owners' associationWet Hillen: relief for a small or paid-off mortgageAankoopmakelaar: the buyer's agent
© 2026 Expatool · Educational, not financial or tax advice · 2026 Dutch tax rules.