Dutch 10-year mortgage rate hits 3.83%, highest of 2025, as buyers shift preferences

The average 10-year fixed mortgage rate with the National Mortgage Guarantee (NHG) has climbed to 3.83 percent, the highest level this year, as nearly half of Dutch homebuyers now choose this term, up 25 percent from last year, De Hypotheker reported.

Rising capital market rates, which increased from 2.8 to 3 percent in the past month, are driving the increase. Experts cite inflation concerns, geopolitical instability, and government debt, while investors anticipate a possible European Central Bank rate hike in 2026. Lenders have passed these increases to borrowers seeking long-term fixed rates.

Rates for 20- and 30-year periods are also at 2025 highs, at 4.24 percent and 4.39 percent respectively, but demand for these longer terms has fallen. Only 21 percent of buyers now choose 16- to 20-year periods, down from 27 percent last year.

“Mortgage applications for 10-year fixed rates have grown nearly a quarter compared with last year,” said Mark de Rijke, commercial director of De Hypotheker. “This period balances certainty over monthly payments with flexibility for life changes such as moving or extra repayments.”

Financial advisers highlight that first-time buyers often select 10-year rates because the shorter term is cheaper than 20-year options, while still allowing significant principal repayment in annuity mortgages. Oscar Noorlag of Van Bruggen noted, “You pay a lower interest rate over ten years, so a larger part of the fixed monthly amount goes toward principal repayment.”