Fixed or variable mortgage rate: how Dutch rates work

A Dutch mortgage rate is either fixed for an agreed number of years or variable. A fixed rate stays the same for that period, however the market moves. A variable rate can be changed by the lender along the way. The period you pick also affects how much you can borrow, because the stress-test rule treats fixed periods of ten years or longer differently from shorter ones. Which one suits you is a personal decision, and it is the kind of question a licensed adviser is there to answer.

How a fixed-rate period works

The rentevaste periode (fixed-rate period) is the stretch of time during which your interest rate cannot change. Lenders offer a choice of lengths. The fixed period is separate from the term of the loan itself, so over the life of a mortgage you will usually go through several fixed periods, each ending with a new rate.

A mortgage can also be split into parts, each with its own fixed period, so you could have one part fixed for ten years and another fixed for longer, or a variable part alongside a fixed one.

How a variable rate works

With a variabele rente (variable rate) the lender can adjust your rate during the loan. Your monthly payment goes up or down with it. You get no certainty about future payments, but you are not tied to one rate for years either.

The trade-off, described neutrally

The AFM, the Dutch financial conduct regulator, sums up the trade-off like this. Fixing for longer gives you certainty that your interest costs will not rise during that period. On the other hand, a longer fixed period usually costs somewhat more, and you do not benefit if rates fall. Short periods and variable rates usually start lower, but you carry the risk that the rate goes up.

Neither option is better in general. The answer depends on your budget, how much of a rate rise you could absorb, how long you expect to stay in the house, and your plans. An adviser has to look at exactly those things before recommending anything.

How the fixed period affects how much you can borrow

When a lender works out your maximum mortgage, it tests your income against the interest rate. The rule is in article 3 of the Tijdelijke regeling hypothecair krediet (the temporary mortgage lending regulation), and it depends on the length of the fixed period:

The AFM publishes the toetsrente at least 14 days before each quarter. It is a market-share-weighted average of the ten-year fixed rates used by at least five of the six largest lenders, and the regulation sets a floor of 5%. For the third quarter of 2026 the AFM set it at 5%.

If your mortgage has parts with different rates, the lender tests against a weighted average of those rates, based on the amount and remaining term of each part.

A hypothetical example, with made-up rates that are not current offers: say a lender offers 4.2% fixed for five years and 4.5% fixed for ten years, and the toetsrente is 5%. For the five-year option the lender must test your income at 5%. For the ten-year option it tests at 4.5%. The ten-year option can therefore give you a higher maximum mortgage, even though its monthly rate is higher. Our maximum mortgage calculator shows the effect for your income.

What happens when the fixed period ends

According to the AFM, your lender will tell you the new rate for the next period at least three months before your fixed period ends. At that point you can accept the offer, ask for a different fixed period, or look at other lenders.

If rates fall between the offer and the end of your period, not every lender lets you switch to the lower rate. Some do. If rates rise, the lender does not pass that on to an offer it has already made. The AFM notes that you can still ask your lender for a new proposal, or compare with other lenders.

Some lenders also offer rentemiddeling (rate averaging), which lets you swap your current rate for a new one before your fixed period ends. The lender's loss from ending the old rate is then added to the new rate as a surcharge, instead of being paid in one go.

Repaying early: the penalty rules

If you repay more than your contract allows during a fixed period, the lender may charge a vergoeding voor vervroegde aflossing (early repayment fee), often called boeterente. The law limits it. Under article 81c of the Besluit Gedragstoezicht financiële ondernemingen, which falls under the Wft (the Financial Supervision Act), the fee may not be higher than the lender's actual financial loss. If you tell the lender you plan to repay early, it must give you the calculation of the fee and the assumptions behind it.

The AFM explains how that loss is usually worked out. The lender compares your contract rate with the rate it could charge today for a loan with the same remaining fixed period (the "comparison rate"). It adds up the interest it misses over the rest of your fixed period and discounts that amount to today. So if rates have risen since you fixed, there is usually little or no loss. If rates have fallen, the fee can be substantial.

Several things that reduce or remove the fee are lender terms, not legal rights, so check the offer:

• Penalty-free allowance. Your contract may let you repay a set amount each year without a fee, the vergoedingsvrije ruimte. Whether you have one, how large it is and how it works are set by the lender.
• Moving house. Some contracts let you repay without a fee when you sell. The AFM notes that some lenders give a discount if you give up that option.
• Taking your rate with you. Whether you can carry your rate over to a next home, and under what deadlines, is set by each lender.

A binding mortgage offer comes with 14 days to think it over, and the lender must also give you a European Standardised Information Sheet (ESIS) that sets out the costs. Both are good places to find these terms in writing.

Questions to ask before you choose

• What is the rate for each fixed period you are considering, and what maximum mortgage does each one give me?
• If I choose a period shorter than ten years, what rate will you test my income at?
• What would my monthly payment be if the rate were a few points higher when my fixed period ends?
• How much can I repay each year without a fee, and does unused allowance carry over?
• Can I repay without a fee if I sell the house? Can I take my rate to a new home, and within what deadline?
• How do you calculate the early repayment fee, and do you offer rate averaging?
• If rates fall after you send me a renewal offer, can I switch to the lower rate?

Where to go from here

How long to fix is one of the choices an adviser has to explain and justify, looking at your income, savings and plans. If you would like to discuss it in English, you can request mortgage advice and up to three independent, licensed advisers will contact you. For how much you could borrow in the first place, read how much an expat can borrow.

Sources

• Wetten.overheid.nl: Tijdelijke regeling hypothecair krediet (article 3)
• AFM: Toetsrente hypotheken derde kwartaal 2026 is 5%
• AFM: Welke rol speelt hypotheekrente?
• AFM: Vervroegd aflossen, uitleg in 4 stappen
• Wetten.overheid.nl: Besluit Gedragstoezicht financiële ondernemingen Wft (article 81c)

Figures checked against the sources above on 23 September 2026.

Photo: DennisM, Wikimedia Commons, CC0.