An investment mortgage in the Netherlands, known in Dutch as a beleggingshypotheek, is an older type of mortgage in which you build up investments with the intention of using their value to repay your mortgage at the end of the term.
Instead of repaying the mortgage principal every month, the mortgage debt generally remains outstanding while money is invested separately. The idea is that the investments grow sufficiently over time to repay some or all of the mortgage when it reaches its end date.
This creates an important difference compared with an annuity or linear mortgage. With those mortgage types, repayment of the debt is built into the monthly payments. With an investment mortgage, the eventual repayment depends partly on investment performance.
Investment mortgages were relatively common in the Netherlands before 2013. They are now primarily relevant to homeowners who already have one. A traditional beleggingshypotheek is no longer generally available as a new tax-efficient owner-occupied mortgage.
If you already have an investment mortgage, however, decisions about keeping it, refinancing it, moving it to another property, or converting it to another mortgage type can have significant financial and tax consequences.
This guide explains how a Dutch beleggingshypotheek works, the risks involved, the tax rules, your options if you already have one, and what expats should know.
What Is a Beleggingshypotheek?
A beleggingshypotheek is a mortgage where the mortgage loan and the capital used for repayment are separated.
You normally have a mortgage loan on which you pay interest. Instead of gradually repaying that mortgage through monthly principal payments, you invest money separately.
Those investments are intended to build the capital required to repay the mortgage later.
In its simplest form, the structure looks like this:
You borrow money to purchase your home.
You pay mortgage interest on the outstanding loan.
You invest money separately during the mortgage term.
The mortgage debt itself may remain largely unchanged.
At the end of the mortgage term, the accumulated investments are used to repay the mortgage.
If the investments are worth less than the remaining mortgage, you have to cover the difference yourself.
This final point is the main risk of an investment mortgage.
The mortgage debt is certain. The future value of the investments is not.
What Is an Investment Mortgage Called in Dutch?
The Dutch term is beleggingshypotheek.
You may also encounter related terms such as:
beleggingsrekeninghypotheek
beleggershypotheek
effectenhypotheek
aandelenhypotheek
beleggingsverzekering
beleggingspolishypotheek
Beleggingsrecht Eigen Woning or BEW
These terms are related, but they do not always describe exactly the same structure.
For expats, this distinction matters because Dutch mortgage documents, old insurance policies, and tax documents may use different terminology.
How Does an Investment Mortgage Work?
Suppose your mortgage consists of a €300,000 investment mortgage.
You may pay interest on the €300,000 mortgage while simultaneously investing an agreed amount every month.
Unlike with an annuity mortgage, your monthly investment does not automatically reduce the mortgage balance.
The mortgage could therefore still be €300,000 many years later.
At the end of the mortgage term, the investments are used to repay the outstanding mortgage.
If the investment account is worth €320,000, there may be enough capital to repay the €300,000 mortgage.
If it is worth only €220,000, you would still have an €80,000 shortfall that needs to be financed or repaid in another way.
That is why the expected investment return should never be treated as a guaranteed repayment.
Investment Mortgage Example
The effect of investment returns becomes clearer with a simplified example.
Imagine investing €300 per month for 30 years.
Ignoring investment costs, taxes, and fluctuations during the investment period, the approximate final values would be:
| Average annual return | Approximate value after 30 years |
|---|---|
| 2% | €147,800 |
| 4% | €208,200 |
| 6% | €301,400 |
The difference is substantial.
At an average return of approximately 6%, the investments in this simplified example could grow to around €300,000.
At 2%, the value would be less than half that amount.
Actual investments do not produce a constant annual return. Investment costs, market fluctuations, taxation, changes to contributions, and the timing of returns can all change the final result.
The example therefore illustrates the risk rather than predicting what an investment portfolio will achieve.
Can You Still Get an Investment Mortgage in the Netherlands in 2026?
A traditional Dutch beleggingshypotheek is essentially a legacy mortgage product.
New tax-favoured investment mortgage structures stopped being available after the Dutch mortgage tax rules changed in 2013.
For a completely new owner-occupied mortgage taken out today, mortgage interest generally qualifies for the Dutch mortgage interest deduction only when the qualifying mortgage debt is repaid within a maximum of 30 years according to at least an annuity or linear repayment schedule.
A traditional investment mortgage does not operate in this way because the mortgage principal itself is generally not gradually repaid according to such a schedule.
For most people buying their first Dutch home today, the relevant mortgage choices are therefore primarily an annuity mortgage or a linear mortgage.
Read our guide to annuity versus linear mortgages in the Netherlands if you are choosing a new mortgage.
Existing investment mortgages are different. Older mortgages may have transitional rights, so changing them without first understanding the tax consequences can be expensive.
Why Did Investment Mortgages Become Less Common?
The Dutch mortgage market changed considerably after 2013.
Before then, several mortgage structures allowed homeowners to keep a relatively high mortgage debt while separately building savings or investments.
For newly originated owner-occupied mortgages, the tax rules now strongly favour mortgage structures where the mortgage itself is gradually repaid.
There is another important reason investment mortgages became less attractive: investment risk.
When you use investments to repay a mortgage, you are relying on an uncertain asset to repay a fixed liability.
Your mortgage lender expects the mortgage to be repaid regardless of what financial markets do.
If your investments underperform, the difference remains your responsibility.
Investment Mortgage vs Annuity Mortgage
An investment mortgage and an annuity mortgage work very differently.
With an annuity mortgage, each monthly payment consists of interest and repayment. Over time, the mortgage balance decreases until the loan is completely repaid at the end of the agreed term.
With an investment mortgage, the mortgage principal can remain outstanding while capital is accumulated separately through investments.
An annuity mortgage therefore provides much more certainty about repayment.
If you make the required payments throughout the term, the scheduled mortgage debt reaches zero.
With an investment mortgage, the final outcome depends on the value of your investments.
Read more about how an annuity mortgage works.
Investment Mortgage vs Linear Mortgage
A linear mortgage repays a fixed amount of principal every month.
Because the outstanding mortgage becomes smaller, the interest expense gradually decreases as well.
This normally results in higher monthly payments at the beginning of the mortgage and lower payments later.
An investment mortgage does not provide the same automatic reduction in mortgage debt.
That means the two structures have completely different risk profiles.
A linear mortgage focuses on reducing debt as quickly and predictably as possible. A beleggingshypotheek relies on separately accumulated investment capital.
Investment Mortgage vs Interest-Only Mortgage
An investment mortgage often contains an interest-only mortgage component.
The difference is what happens alongside that mortgage debt.
With a pure interest-only mortgage, there is no contractual investment account that automatically builds capital for repayment.
With an investment mortgage, investments are specifically intended to provide some or all of the money required to repay the mortgage eventually.
In both cases, however, the mortgage balance itself may remain outstanding for a long period.
You can read our full guide to the interest-only mortgage in the Netherlands for the current rules.
Investment Mortgage vs Bank Savings Mortgage
A bank savings mortgage, or bankspaarhypotheek, also separates the mortgage debt from the capital accumulated for repayment.
The important difference is how that capital is built.
With an investment mortgage, the capital is invested, and its future value is uncertain.
With a traditional bank savings mortgage, capital is accumulated in a restricted savings account under the conditions of the mortgage structure.
The risk and return characteristics are therefore very different.
If you have an older mortgage and are comparing these structures, read our complete guide to the bank savings mortgage in the Netherlands.
Is an Investment Mortgage the Same as a Buy-to-Let Mortgage?
No.
This is particularly important for English-speaking expats because the phrase “investment mortgage” can have two different meanings.
A Dutch beleggingshypotheek is a mortgage where investments are used to build capital for the eventual repayment of your own mortgage.
A buy-to-let mortgage is financing for a property that is purchased or held as an investment and rented to tenants.
They are completely different concepts.
If your goal is to buy Dutch property and rent it out, you are probably looking for a buy-to-let or rental mortgage rather than a beleggingshypotheek.
Read our guide to buy-to-let mortgages in the Netherlands for expats if that is what you are looking for.
Different Types of Dutch Investment Mortgages
Several structures have historically been described as a beleggingshypotheek.
Investment account mortgage
With this structure, money is invested through a separate investment account.
The investment account is intended to accumulate enough capital to repay the mortgage at the end of the term.
The value is determined by the performance of the selected investments.
Securities mortgage or effectenhypotheek
An effectenhypotheek uses securities, such as investment funds or other financial assets, as the capital intended for repayment.
Depending on the original structure, an initial lump sum could also have been invested.
This can create substantial investment risk because the amount available at the end of the mortgage depends on financial-market performance.
Investment insurance mortgage
Some investment mortgages use a life insurance policy through which premiums are invested.
Part of the premium may cover insurance costs while another part is invested.
Older investment-linked insurance products can be relatively complicated because investment costs, insurance costs, and mortality-risk premiums may all influence the final value.
Beleggingsrecht Eigen Woning
Some older homeowners have a Beleggingsrecht Eigen Woning, commonly abbreviated as BEW.
This is a specific tax-related investment arrangement connected to an owner-occupied mortgage.
Because new BEW products have not been available since 2013, these arrangements mainly exist under transitional rules.
Never assume that the tax treatment of a normal investment account and a BEW is the same.
How Is a Beleggingshypotheek Taxed?
The tax treatment depends heavily on the exact structure and when it was created.
This is one of the most important details to verify before changing an older investment mortgage.
Mortgage interest deduction
For new owner-occupied mortgage debt created from 1 January 2013, the mortgage generally needs to be repaid at least according to an annuity or linear repayment schedule within 30 years for the interest to qualify for mortgage interest deduction.
A traditional newly created investment mortgage would normally not satisfy that repayment requirement.
Mortgages from before 2013
Different rules can apply if your mortgage debt already existed before 2013.
Qualifying existing mortgage debt can fall under transitional rules.
In some situations, the tax treatment can also continue when refinancing or moving house, provided the applicable requirements are satisfied.
This is why an existing pre-2013 mortgage should not automatically be converted simply because a newer mortgage structure appears easier.
The value of the existing tax rights can be significant.
Read our detailed guide to mortgage interest deduction in the Netherlands for a broader explanation.
Box 1 or Box 3?
You may read online that investments belonging to a beleggingshypotheek always fall into Box 3.
That is too broad.
An ordinary investment account may form part of your Box 3 assets.
Certain qualifying legacy arrangements, including some Kapitaalverzekering Eigen Woning and Beleggingsrecht Eigen Woning products, can instead fall under the transitional Box 1 rules when the relevant conditions continue to be satisfied.
The exact treatment therefore depends on your original contract.
If you already have an investment mortgage, have the mortgage loan and investment or insurance component reviewed together before making changes.
Advantages of an Investment Mortgage
For existing mortgage holders, a beleggingshypotheek can have several potential advantages.
Investment returns may ultimately be higher than the amount required to repay the mortgage.
An older mortgage may also have valuable tax rights that would not be available on a completely new mortgage today.
Because the mortgage principal is not necessarily repaid every month, required mortgage payments can also be structured differently from those of an annuity or linear mortgage.
There can also be flexibility within certain investment arrangements.
These potential advantages need to be weighed against the much greater uncertainty surrounding the final repayment amount.
Risks and Disadvantages of an Investment Mortgage
Your final capital is not guaranteed
This is the central risk.
Investment markets can perform better or worse than expected.
If your investments are worth less than the mortgage balance when the mortgage ends, you still need to repay the difference.
Your mortgage debt may remain high
Unlike an annuity or linear mortgage, the debt itself may not gradually decline.
This means you can reach the later years of your mortgage while still having a substantial outstanding loan.
Investment costs reduce your return
Investment funds, insurance policies and older financial products may contain management fees and other costs.
Even relatively small annual costs can have a significant effect over a period of 20 or 30 years.
Older insurance structures can be complicated
A beleggingsverzekering may combine investing with life insurance and other costs.
Understanding how much of your premium is actually invested can therefore require examination of the original policy and current statements.
Refinancing can affect tax treatment
Changing an old mortgage can influence valuable transitional rights.
A lower mortgage rate alone does not automatically mean that refinancing produces the best overall result.
Your income may be lower at the end of the mortgage
Many older investment mortgages will reach their end date when the homeowner is approaching or already in retirement.
If the investment value is insufficient, refinancing the remaining debt may then be more difficult because the lender assesses affordability using your income at that time.
What Happens If the Investments Are Worth Less Than the Mortgage?
Suppose your outstanding investment mortgage is €250,000 and the investments are worth €190,000 when repayment becomes necessary.
There is a €60,000 difference.
That remaining amount does not disappear.
Possible solutions can include using savings or other assets, making additional repayments before the end date, refinancing part of the debt if your income permits it or selling the property and using the proceeds.
The available options depend on your mortgage provider, age, income, property value, other assets and the conditions of the mortgage.
Waiting until the final year of the mortgage substantially reduces the time available to solve a possible shortfall.
What Should You Check If You Already Have a Beleggingshypotheek?
Start by determining exactly what you own.
Check:
your current mortgage balance
the mortgage end date
when the mortgage originally started
your remaining mortgage-interest deduction period
the current value of the investment account or insurance policy
the original target capital
your monthly investment contribution
investment performance
investment and insurance costs
whether a death benefit is included
whether the investment component is a KEW, BEW or normal investment account
your expected income at the mortgage end date
the current market value of your home
These figures provide a much clearer picture of whether the mortgage is currently on track.
Can You Repay an Investment Mortgage Early?
Possibly.
Most mortgage products allow a certain amount to be repaid early without an early-repayment charge, but the precise allowance differs between lenders and mortgage contracts.
Repaying part of the mortgage reduces the amount that needs to be covered by the investments later.
It can therefore reduce the risk of a future funding gap.
However, an existing investment mortgage can contain connected tax, insurance and investment arrangements.
Do not cancel or change the investment component simply because you make an additional repayment.
The different parts of the mortgage should be assessed together.
Can You Convert an Investment Mortgage to an Annuity or Linear Mortgage?
In many cases, changing the mortgage structure may be possible, but whether it is financially attractive is a separate question.
You might consider converting some or all of the mortgage if you want greater certainty that the debt will be repaid.
An annuity or linear mortgage creates scheduled principal repayment rather than relying on investment performance.
However, changing an existing pre-2013 mortgage can affect its monthly payments, investment policy and tax position.
A proper comparison should therefore include both the immediate monthly cost and the long-term consequences.
Can You Refinance a Beleggingshypotheek?
Existing investment mortgages can sometimes be refinanced.
This does not necessarily mean recreating the exact same mortgage as a completely new product.
The possibilities depend on your existing mortgage, lender, investment or insurance arrangement and tax history.
Someone with qualifying pre-2013 mortgage debt may also have transitional tax rights that need to be preserved correctly when refinancing.
The important question is therefore not simply whether another lender offers a lower interest rate.
You need to compare the entire structure before moving the mortgage.
Can You Take an Existing Investment Mortgage to a New Home?
This can sometimes be possible.
Older mortgages and associated investment products can have transitional rules that allow qualifying arrangements to continue when moving to another owner-occupied property.
The exact conditions matter.
If you are selling your current property and buying another home, have your existing mortgage reviewed before cancelling the investment account or insurance policy.
Once an old tax-favoured arrangement has been terminated incorrectly, recreating the same rights may no longer be possible.
Beleggingshypotheek and Expats
An expat who already owns a Dutch investment mortgage may face additional questions.
You may have moved abroad since taking out the mortgage, expect to leave the Netherlands in the future or hold assets in several countries.
Residence and tax status can affect how your home, mortgage and investments are treated.
Foreign income can also affect your refinancing options because Dutch mortgage providers do not all assess international income in the same way.
If you expect to move abroad or already receive income outside the Netherlands, review the mortgage before making major changes.
For a broader overview of obtaining financing as an international homeowner, read our guide to getting a Dutch mortgage as an expat.
Should You Keep or Change an Existing Investment Mortgage?
There is no universal answer.
Keeping the mortgage may make sense if the investments are performing sufficiently, the costs are reasonable, you understand the risks and your existing tax treatment remains valuable.
Changing the mortgage may deserve investigation if the expected investment value is significantly below the remaining mortgage, costs are high, you want greater certainty, retirement is approaching or your financial circumstances have changed.
The comparison should include:
current mortgage debt
expected investment value
remaining term
mortgage interest rate
investment costs
expected retirement income
mortgage-interest deduction
tax status of the investment component
property value
refinancing possibilities
additional repayment options
Looking only at today’s monthly payment can give a misleading picture.
The end-of-term position matters just as much.
Choosing a Mortgage Today
If you are buying a Dutch home today and do not already have an investment mortgage, you normally do not need a beleggingshypotheek.
Most new owner-occupied mortgages are structured using an annuity mortgage, a linear mortgage or a combination of different permitted loan parts.
Which structure is most suitable depends on your income, expected length of stay in the Netherlands, tax position, savings and long-term plans.
You can explore the main options in our overview of Dutch mortgage types for expats.
You can also use our Dutch mortgage calculator for expats for an initial estimate of your borrowing capacity.
Get Your Existing Investment Mortgage Reviewed
Do you already have a beleggingshypotheek and want to know whether keeping, refinancing or converting it makes sense?
Or have you found the term “investment mortgage” in old Dutch mortgage documents and want to understand exactly what you have?
Expat Mortgage Platform specialises in independent mortgage advice for internationals in the Netherlands.
We can review your existing mortgage structure, investment component, refinancing possibilities and current financial position and explain your options clearly in English.
Book a free, no-obligation mortgage consultation with Expat Mortgage Platform and find out which options are available for your situation.
Frequently Asked Questions About Investment Mortgages
What is a beleggingshypotheek?
A beleggingshypotheek is an older Dutch mortgage structure where the mortgage debt generally remains outstanding while money is invested separately. The investments are intended to provide the capital needed to repay the mortgage later.
What is beleggingshypotheek in English?
Beleggingshypotheek is usually translated as investment mortgage, investment-linked mortgage or investment-based mortgage.
Can I still get a beleggingshypotheek in the Netherlands?
Traditional investment mortgages are legacy products and are no longer generally available as new tax-efficient owner-occupied mortgages. They remain relevant to people who already have an older investment mortgage.
Can expats have an investment mortgage in the Netherlands?
Yes. Expats who took out an older Dutch investment mortgage can still have one. The relevant options depend on the original mortgage, investment arrangement, tax position and lender conditions.
Is an investment mortgage the same as a buy-to-let mortgage?
No. A Dutch beleggingshypotheek uses investments to accumulate capital to repay a mortgage. A buy-to-let mortgage finances a property that is intended to be rented to tenants.
Is a beleggingshypotheek interest-only?
The mortgage loan itself is commonly structured so that principal is not regularly repaid during the term. Instead, investments are built alongside the mortgage with the intention of repaying the outstanding balance later.
Is mortgage interest on a beleggingshypotheek tax deductible?
It depends on when the mortgage was created and whether it meets the applicable Dutch tax requirements. Qualifying mortgage debt dating from before 2013 can have transitional rights. A completely new mortgage created today generally needs to meet the annuity or linear repayment requirement for mortgage-interest deduction.
Does a beleggingshypotheek fall in Box 3?
Not automatically. A normal investment account may form part of Box 3 assets, but qualifying older products such as certain KEW or BEW arrangements can have different transitional tax treatment. Check the exact product before making changes.
What happens if my investments are not enough to repay my mortgage?
You remain responsible for the difference. Depending on your circumstances, you may need to use other savings, repay additional amounts, refinance the remaining mortgage or use the proceeds from selling the property.
Can I convert a beleggingshypotheek to an annuity mortgage?
A conversion may be possible depending on your lender and financial situation. Because changing an older mortgage can have tax and investment consequences, the complete structure should be reviewed before making the change.
Can I refinance an investment mortgage?
Existing investment mortgages can sometimes be refinanced or restructured. Special attention should be paid to any transitional mortgage-interest deduction and the tax status of connected investment or insurance products.
Can I move my investment mortgage to another property?
Qualifying existing mortgage and investment arrangements can sometimes be continued when moving to another owner-occupied home. The exact possibilities depend on the original mortgage and applicable transitional rules.
Is an investment mortgage risky?
Investment mortgages involve market risk because the future value of the investments is uncertain while the mortgage debt still needs to be repaid. If the investments underperform, you can face a shortfall at the end of the mortgage term.
What should I do if my beleggingshypotheek is approaching its end date?
Check your outstanding mortgage balance, current investment value, expected end value, income after retirement, remaining tax deduction period and refinancing options as early as possible. The earlier a potential shortfall is identified, the more options you normally have to address it.
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