April 2019


by Jack van Marle


Firs- time buyers can still be approved for a mortgage

Buying a house has become harder for first-time buyers for various reasons, but it’s certainly not impossible. Don’t let the things you see and hear in the media put you off, just make sure you get the help of a professional, so you can look at your options together. Owning your own home doesn’t have to remain a distant dream.

When it comes to finding a place to live, there are two options: Either you rent a house or you make clever use of your money and buy a house. When you opt for the renting route you won’t accrue ‘brick & mortar capital’ and your rent will be going up almost every year, whereas when you buy your house your monthly payment may very well remain the same for decades.

Why is buying almost always the better choice?

Right now, house prices are doing well, but between 2008 and mid 2013 average house prices did fall, rising again from 2013 onwards. Of course, we can’t predict what the housing market will do in the coming years. Prices are likely to keep rising but in the end only time will tell. But even when house prices would fall again, buying is still a better choice than renting. As a buyer you simply have your monthly payments, and after 30 years your mortgage is paid off. However, people who rent their house will have to deal with their rent constantly going up due to inflation, something you as a home owner won’t have to worry about.

What kind of mortgage will suit me best

In the Netherlands, first-time buyers can choose one of two mortgage types:

  • An annuity mortgage
  • A linear mortgage

The majority of first-time buyers opt for an annuity mortgage because of the low monthly payments in the first half of the mortgage term. With an annuity mortgage you pay a fixed amount every month, made up of both your mortgage repayment and the interest on your mortgage. With a linear mortgage you have a higher monthly payment at the start of the term, but you pay a bit less every month. Because of the lower monthly payment in the first half of the term, an annuity mortgage is the best option for most first-time buyers.

What will I need as a first-time buyer?

The purchase price of your house is completely covered by your mortgage, but there are additional costs which you’ll have to pay for yourself. The extent of these costs will depend on the purchase price of your house, but it is rarely less than €10,000. However, you can save on these additional costs by doing things like engaging a cheaper notary, and Van Marle Mortgages’ reasonable fees can help as well. While standard mortgage advice could cost all the way up to €2,500 or even €3,000, we offer first-time buyers a special advice package for the competitive price of €1,600.

Taking out a mortgage is more than just comparing interest rates

A mortgage should suit both your current life and your future plans. We always look beyond the here and now, because we feel your dreams for the future shouldn’t become impossible to realize just because you bought a house. We also look at ways for your monthly payments to still be made if you would no longer be able to work or were to die. All these factors are part of the advice we give you.

Would you like to know more about where you stand in the current housing market? We are happy to sit down with you and look at your various options. And because we’re independent mortgage advisors, it’s very likely that there are more options than you previously thought!

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