7 May 2018

Buying your first home: the positive side of the story

Mortgage standards have become stricter and house prices are rising fast, especially in Amsterdam. Add to that that permanent contracts are becoming increasingly scarce. No wonder you would get demotivated… But not everything is negative for those who want to buy their first home. Below is a list of what is possible for starters.

  1. Take advantage of the low mortgage rates

The low mortgage rate is a major reason why people are now buying a house. Starters can beneficially finance their first home. If the monthly payment for a mortgage of 200,000 euros in 2013 was 1000 euros in interest and if the annuity repayment was monthly, than this is now only 700 euros anymore. Positive news!

  1. A higher loan for your first home, it is possible

On this day you can’t borrow more than (100% of) the value of the home you want to buy. This means that you must finance the buyer’s costs entirely with your own resources. But the maximum mortgage on the basis of income has actually become slightly larger, especially for two-income households. There are a number of ways that you can borrow more money:

  • To finance energy-saving measures, you may borrow up to 106% of the home value;
  • If you buy a house with an energy label A ++ (or higher) or if you buy a zero-on-the-meter home, you can borrow even more;
  • And, a slightly higher mortgage rate can sometimes lead to a considerably higher mortgage.
  1. Financial assistance for starters

Starter loan

A starter loan is an extra loan on top of your mortgage. With that you bridge the difference between the price of the house and the mortgage at the bank. For the first three years, you don’t have to pay any monthly costs for this extra loan. (Please note, this loan only applies to some municipalities. Unfortunately, the municipality of Amsterdam does not participate …) At www.svn.nl you can see which municipalities do participate.

Donate

In 2018 it is possible to donate up to 100,000 euros tax free for the purchase of a home. In addition, a family relationship is not mandatory. With a loan-donating construction this is advantageous for both donor and buyer.

  1. Mortgage without a permanent contract

Today there are more possibilities to get a mortgage without a permanent contract.

  • Flex workers are eligible for a mortgage with a perspective statement from the temporary employment agency or secondment agency with selected lenders;
  • Self-employed people and freelancers can (with a number of lenders) take out a mortgage with a National Mortgage Guarantee after a year;
  • And, it is also possible for some lenders that parents guarantee the mortgage.
  1. Mortgage and study debt

Thanks to the new loan system, starters have a study debt more often. You can also get a mortgage with a study debt (or DUO loan). However, this is taken into account when calculating the maximum mortgage. With a study debt you can borrow less.

  1. Limited housing supply? Be inventive and take initiative

A house in Amsterdam is only 27 days for sale on average. If you wait for the biennial Open House Day, you will miss a lot of houses. Buying a home now requires a different approach, so it’s a good idea to side with a buying agent. Choose Thoma Post makelaars!

 

Sources: www.nvm.nl and www.fx.nl

 

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