What does the foundation label mean for first-time buyers?

What is a foundation label?

The official name for a foundation rating is the foundation risk class of a property. This classification is issued by the KCAF, the Dutch Knowledge Centre for Foundation Issues. The KCAF calculates the rating using data from the FunderMaps database. This database includes details such as foundation type, soil conditions, and groundwater levels. As such, the label is a remote estimate rather than an on-site inspection of your home.

No one physically inspects the foundation beneath the house to assign the label. Because of this, the assessment can turn out to be overly optimistic or too pessimistic. You might also hear it referred to as a foundation code, though that is not an official term. As a buyer, you will primarily encounter this rating in the appraisal report for your mortgage.

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Why should first-time buyers pay attention to the foundation label?

As a first-time buyer, a poor foundation label affects you more severely than other buyers. This is due to four factors associated with purchasing your first home:

• If you borrow the maximum amount, there is little room for unexpected repair costs.
• With limited savings, you cannot easily afford repairs costing tens of thousands of euros.
• If you buy with NHG, the label will be taken into account from 2027. NHG is the National Mortgage Guarantee, which often provides a lower interest rate. The NHG limit will rise to €500,000 in 2027.
• The label is included in the valuation report, which you only receive after the purchase.

Just how substantial these costs can be is highlighted by research from the AFM (the Dutch Authority for the Financial Markets). According to their findings, foundation repairs average around €92,000 when required. For half of those affected, the cost runs to €54,000 or more. The AFM notes that this poses a particularly high risk for first-time buyers, who typically have smaller financial buffers. Even so, a poor rating doesn’t have to derail your purchase. You just need to know about it before making an offer. Right now, you only find out after signing—and we don't think that's fair.

What do foundation labels A through E mean?

A rating of A indicates no foundation risk, while E signals an identified foundation issue. The risk escalates in between, from minor for B to high for D. With a D or E rating, further investigation is the obvious next step. These five classes are based on the KCAF classification system. The table also shows what you, as a buyer, should do for each rating.

A poor rating is usually due to wooden piles or a shallow foundation. Wooden piles rot if the groundwater level is too low. A shallow foundation (on steel) settles along with soft soil. In addition, the year of construction and the soil type are taken into account in the assessment.

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Which foundation rating rules have changed and what is coming next?

The rules for home appraisals and the National Mortgage Guarantee (NHG) have changed, and the government has two additional plans underway. Since 1 April 2026, the foundation risk class has been a mandatory component of the appraisal report. Every property is now assigned a class ranging from A to E. This agreement was established by the industry itself, rather than by new legislation.

The government wants foundation information to be available earlier in the buying process. Currently, the appraisal only takes place after you've signed the purchase agreement. Until these agreements are in place, first-time buyers have to take the initiative themselves.

What does a foundation label of D or E mean for your mortgage?

A rating of D or E could reduce how much you can borrow if a subsequent survey shows poor results. Under the NHG scheme, this survey becomes mandatory from 2027 onwards. This NHG rule applies, among other things, to the purchase of existing homes. Step by step, here’s how it works:

1. For labels A, B, or C NHG does not take foundation risk into account.
2. For labels D or E an exploratory foundation survey is mandatory first.
3. A certified expert conducts this survey from the outside, without exposing the foundation.
4. If the result is low or medium NHG sets no additional requirements.
5. If the result is high the estimated repair costs are included, and you will be able to borrow less.

For a first-time buyer, that final step is the biggest risk. If you’re already borrowing the maximum amount, it leaves you with a financial shortfall. What's more, your own savings are only factored in above €25,000 for repair costs. That’s a buffer very few first-time buyers have. Without NHG, on the other hand, each bank sets its own policy regarding the foundation label. A number of lenders already factor repair costs into their affordability checks.

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Where can you find a house's foundation label?

You can find the foundation label in the appraisal report, but that only comes after you make an offer. Therefore, you should request the label from other parties before making your offer:

• The seller's real estate agent is increasingly including the class in the sales information.
• The National Foundation Desk answers your questions about foundations.
• Your municipality sometimes has its own foundation desk or a map showing risk areas.
• KCAF now only provides reports to private individuals to a limited extent.

A public map showing the label for each home does not yet exist. If you cannot get the label, ask if a foundation survey has been conducted previously. If that is also missing, it is a reason to have a survey done yourself.

How do you check the foundation label before making an offer?

You check the foundation label by requesting it before you make an offer. For labels D or E, you should first have an exploratory survey conducted. Here is how to proceed step by step:

1. Request the label from the seller's agent, as early as the viewing.
2. Have a QuickScan done for D or E. This is an exploratory survey of the foundation.
3. Include a foundation contingency clause if there is no time for a survey. Include this in the purchase agreement, so you can withdraw if the results are poor.
4. Factor in potential repair costs in your offer, because you will be responsible for them after the purchase.
5. If buying an apartment, read the VvE documents, such as the minutes and the maintenance plan. These will show if the VvE is planning foundation repairs.

A building survey does not examine the foundation itself as standard. However, a surveyor will watch for warning signs, such as cracked walls and sloping floors. A general survey is therefore no substitute for a dedicated foundation inspection.

With a mortgage certificate from homeup, your mortgage is pre-approved. Because you will be bidding without a financing contingency, you need to know the foundation label upfront. What's more, a mortgage will only cover up to the property's appraised value.

With homeup as your buying agent, you won’t have to navigate these steps alone:

• We check the VvE documents, such as the minutes, the reserve fund, and the maintenance plan.
• We investigate the market value of the home so you don't overpay.
• Together we determine the bidding strategy, and we submit the offer on your behalf.
• You pay €2999 for our services, and only upon transfer of the keys.

Explore our home-buying services, or get in touch for tailored advice.

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