An employer's statement (werkgeversverklaring) is a mandatory and essential part of a mortgage application that the lender uses to determine the income. It works as a guarantee for the lender In exchange for the money that they lend you, they want proof that you can pay the monthly rent and repayment.
Why does a lender ask for an employer's statement? In an employer's statement, the income is determined in combination with a recent payslip. The employer's statement is therefore an official representation of your income situation and provides more information than the payslip. The income on the employer's statement and on the pay slip must of course match. The statement is filled out by the employer and is always requested by the bank if you want to take out a mortgage. You need it if you want to get a mortgage and if you are employed.
In some cases it is also possible to apply for a mortgage with an employer's statement by means of a report via the UWV. UWV (Employee Insurance Agency) is an autonomous administrative authority (ZBO) and is commissioned by the Ministry of Social Affairs and Employment (SZW) to implement employee insurances and provide labour market and data services. The report the UWV can issue gives the lender the certainty that you can bear the costs of the mortgage, but is not related to the employer. Not all lenders accept the UWV report. It is therefore possible that your financial advisor offers you a mortgage provider that still requires a traditional employer’s statement. No worries, you know this quite quickly in the process. You will have enough time to have it drafted by your employer.
How does a report issued by the UWV work? First of all, you need to be employed by an employer. If this is the case, then your details are known to the UWV. At the UWV you have the option to log in with your own DigiD. If you go to your City Hall or to the counter of a different government organisation, in many cases you will have to prove your identity using your ID card, passport or driving licence. Over the Internet, you can prove your identity by logging in with your DigiD. Government organisations will then know that it really is you they are dealing with. You can download a digital document there (the income statement) and submit it to your financial advisor. He or she will help you to get the right documents.
In certain situations it is also possible to apply for a mortgage without an employer's statement. This is the case if you are a self-employed freelancer. In the Netherlands self-employed freelancers can get a mortgage to buy a house or apartment. But be aware, it can sometimes be a difficult process. A self-employed freelancer, ZZP as the Dutch call it, has no steady income in the form of a monthly salary. He or she must live off the profit his business makes. These profits can sometimes fluctuate. Mortgage providers see that as an increased risk, especially if your company has just made a little less profit for just one year.