Internationals are not only depending on artificial intelligence to help them at work – increasing numbers are asking services like ChatGPT about buying a home.
Matthijs van der Heijden, senior mortgages consultant at Expat Mortgages, says that the broker is hearing from ever more new clients who have first used AI to find out more about the Dutch property market.
“We are actually going to ask people about a new lead source, which is ChatGPT,” he says. “We get a lot of leads from people saying: ‘Oh, I used ChatGPT – what do I need to prepare? Am I eligible?’ It’s a big compliment but there is also a danger in using it as the only source of information.”
Artificial intelligence responds to prompts inputted by the user – but, according to Matthijs, it is the unexpected differences in Dutch law and banks, plus questions you might not have considered, that often catch people out.
The first difference is to think that different banks might offer you a different loan amount, when actually most of the rules in the Netherlands are standardised. “Theoretically, if you go with the same income to four different banks, and all have the same interest rate, all four should give you the same loan amount,” he says. “I know in the US, for example, people can go to four different banks and they would look at a credit score or equity. Here, it’s only income and liabilities.”
It does cost a set fee to use a mortgage adviser, but since a company like Expat Mortgages is independent, the aim is to save you money and get the best deal and interest rate overall. “An independent mortgage broker might be a bit more expensive than the bank, however if you go to the one bank, it’s like going to an ice cream shop that only sells vanilla ice cream even if chocolate would be better,” he points out. “Overall, you can come out more expensive if you go to the one bank, save on the mediation cost, but then take out a mortgage with higher interest rates.”
Online searches can tell you about different banking rates, but they won’t ask detailed questions like a mortgage advisor. It is critical to think about your future plans if you are taking on a long-term financial commitment: are you planning to start a business? What if you find a partner, or split up with a partner? Is there a possibility that you will want to move abroad and rent out the property? It is a mistake to assume that these kinds of life changes will not affect your mortgage.
Smaller mortgage providers can also be more flexible, according to Matthijs. “For example, if you want to be able to pay off more than 10% of of your loan per year without a penalty, none of the big banks allow for that,” he says. “Especially if the mortgage amount is not too high, the chances are that you’ll have some money spare that you might want to use to lower the mortgage – or our clientele might have funds tied up in other countries and might want to clear them at some point to pay off the mortgage here.”
Using an advisor can help find the best deal if your income varies and you have different levels of bonus each year. While normally only an average of your personal bonus over three years counts, if you are in a clearly-growing industry, some providers might be prepared to consider company performance-related bonuses too.
An advisor can also give you additional information. There are signs, for example, that with uncertainties around American policy, some banks are being more cautious about personal income related to dollars. Dutch politicians are currently discussing winding down a tax perk for mortgages, the hypotheekrenteaftrek, as in other countries, because a critical deadline is coming up in 2031 and the perk is becoming ever more expensive: these are issues to discuss with a mortgage advisor to ensure you are taking on a responsible level of debt.
Expat Mortgages also advises its clients always to do an expert house survey to avoid surprises about issues like the foundations, and make an offer with a financial clause (or special insurance product) to avoid paying a 10% penalty if your offer is accepted but the mortgage doesn’t come through.
Finally, ChatGPT might be able to tell you about policy, but it doesn’t have those vital personal personal connections. “Buying agents, selling agents, insurance, people who value a house – these are all human connections that an AI is not going to be able to provide,” says Matthijs. “Sometimes we can provide extra speed because our reputation precedes us. If any bank has a fast track, we can use it, which is important especially in today’s market, when you have to act fast.”
Expat Mortgages is certainly not against ChatGPT and AI. “We even use AI agent to schedule meetings and remove repetitive work,” he says. “But we are very much in favour of using it smartly and being aware of the limitations, rather than blindly taking every word of it as gospel truth!”
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