What is a mortgage deed?

What is a mortgage deed?

When you take out a mortgage, for example, to buy a home or fund a renovation, the notary draws up a mortgage deed. This is a legal document that confirms you are borrowing money from a lender and that your property serves as collateral for the loan.

This comes with significant implications: if you’re ever unable to meet your mortgage obligations, the lender has the legal right to sell your home to recover the debt.

What’s the difference between a mortgage deed and a transfer deed?

When buying a home, you’ll usually sign two notarial deeds:

• Transfer deed (leveringsakte): This deed transfers legal ownership of the property into your name. It’s also known as the transport deed or title deed.
• Mortgage deed (hypotheekakte): This records the terms of your mortgage agreement with the lender.

In short:

The transfer deed covers the ownership of the home, while the mortgage deed covers the financing of it.

What’s included in the mortgage deed?

The mortgage deed outlines:

• The amount you are borrowing (or the maximum amount registered)
• The repayment terms
• What happens if you fail to meet your payment obligations

Higher registration: useful for future financing

When taking out a mortgage, you can choose to register a higher amount in the mortgage deed than what you’re actually borrowing at that time. This is known as a higher registration (hogere inschrijving).

The benefit: Suppose a few years down the line, you want to borrow more (for example by increasing your mortgage for a renovation). If your mortgage deed includes a higher registration, you won’t need to visit the notary again, as long as the additional borrowing stays within the registered amount. That saves time and notary fees.

Important: A higher registration doesn’t mean you can freely access extra funds. To borrow more later, the lender will still:

• Reassess your income
• Reassess your property value (usually with a valuation report)

Only if you meet the lender’s requirements can you access the extra funds.

Additional registration for the lender

In addition to your registered mortgage amount, lenders often register an extra 30–40% on top. This provides the lender extra security in case of default, allowing them to recover:

• Unpaid interestft
• Penalties and collection costs
• Legal fees for selling the property

This gives the bank priority over other creditors in the event of financial problems.

Second mortgage registration

Already own your home and want to take out an extra mortgage (e.g., for renovations), but your current mortgage registration isn’t high enough? In that case, you can arrange a second (or even third or fourth) mortgage registration.

Example: 

• Your current mortgage registration: €150,000
• Current outstanding mortgage: €140,000
• You want to borrow €40,000 for renovations
• You’re close to your current limit, so you arrange a second mortgage registration — for example, €30,000
• Together with the unused portion of the first mortgage, this gives you room to borrow the full €40,000

Just like the first time, it’s wise to immediately include higher registration in the second deed as well — so you don’t need to return to the notary later if you want to borrow more.

What does a mortgage deed cost?

The notary fees for drafting and registering a mortgage deed typically range from €500 to €1,000, depending on the notary and the complexity of your situation.

Why work with a mortgage advisor?

A mortgage advisor can help you fully understand how the mortgage deed works and what’s best for your personal situation. A good advisor will explain:

• Whether higher registration is useful in your case
• The lender’s specific conditions
• How to prevent surprises down the line

The mortgage deed formalises your loan and the way it’s structured is an integral part of our Expat Mortgage guidance.

Summary

• A mortgage deed is drawn up by a notary and documents the agreement between you and your lender.
• The deed of transfer makes you the legal owner of the home.
• Higher registration allows future borrowing without notary costs — but only if the bank approves your income and property value at that time.
• Lenders typically register 30–40% more than the loan amount to cover extra costs if things go wrong.
• If your current registration isn’t sufficient, you can add a second or third registration — again, consider a higher amount right away.
• A mortgage advisor helps you understand all options and makes sure you’re making the best decisions.