By Timothy Tromp de Haas
You want to buy a home, but you have a temporary contract. Your mortgage application requires an employer's statement with a declaration of intent. This expresses your employer's intention to offer you a permanent contract when your temporary one ends, provided your performance and business circumstances remain unchanged.
But your employer won't issue that declaration. Perhaps that's company policy, your temporary contract is part of a training programme, or an extension hasn't been discussed yet. Does that mean you have to wait before buying? Not necessarily. There are various ways to assess your income without a declaration of intent. It's worth exploring them before postponing your search.
No declaration of intent. What does count?
A lender needs to assess whether you can keep paying your mortgage. A permanent contract or declaration of intent helps, but your employment history and prospects in the labour market can also play a role.
One possible route is your average income over the past three calendar years. The most recent year's income generally serves as the upper limit. If your income has stayed fairly stable, that may work well. If you've been earning more each year, the average may be less favourable.
You're earning more now. Does that count too?
Suppose you earned €30,000, €50,000 and €70,000 over the past three years. That's an average of €50,000. Your current salary is therefore €20,000 higher than the income used under this method. Particularly early in your career, this difference can be considerable.
We then look at whether another method is suitable. The Arbeidsmarktscan (labour market scan) is one example. Alongside your employment history, it considers your education and occupation. It uses these to establish your earning capacity: an estimate of the income that fits your position in the labour market.
You don't need three full years of employment for the Arbeidsmarktscan. We're happy to find out whether you qualify and which lenders accept this method. If it's suitable for your situation, we'll guide you through the application and explore what the result means for your mortgage options.
Are you a doctor or PhD candidate with a temporary contract?
As a doctor training to become a specialist (AIOS), a doctor not in specialist training (ANIOS), or a PhD candidate, temporary contracts are often part of your career. Waiting for a permanent contract could mean postponing your housing plans for quite some time.
Some lenders have additional acceptance policies for these professions. This can offer other ways of assessing your income, which may help if you've only been working for a short time or now earn more. Your profession alone does not guarantee a mortgage; conditions and required documents vary by lender.
Do you work through a temporary employment agency?
A Perspectiefverklaring (prospects declaration) may be an option. It considers your work experience, employability and prospects in the labour market. With this declaration and the accompanying employer's statement, participating lenders can include your income in the mortgage assessment.
We're happy to find out whether your agency can issue a Perspectiefverklaring and whether you qualify. That way, you'll know what this route could offer for your mortgage.
Our take
We wouldn't put your housing plans on hold just because you don't have a declaration of intent. First, you'll want to know which income a lender can take into account and what that means for your options.
No declaration of intent or a flexible employment contract? We're happy to explore how your income can count towards a mortgage. In an introductory conversation, we'll discuss which options fit your employment situation and what's needed.