Based on mortgage market figures for the third quarter of 2024, Hypotheek Data Netwerk (HDN) has reported that first-time buyers have to pay in an average of 42.000 euros of their own money when purchasing a home in the Netherlands. Even with higher personal costs and rising house prices in the past three months, there was an increase in the number of houses sold.

First-time buyers need over 40.000 euros cash to afford Dutch house

The average value of a house on the Dutch housing market in Q3 of 2024 was 493.000 euros - more than 9 percent higher than in the same period last year. Falling interest rates and higher wages meant that the average amount for a mortgage also rose by more than 7 percent to 361.785 euros. This still leaves quite a chunk of change that homebuyers have to provide themselves, which is why many first-time buyers delay life events.

People buying a house in the Netherlands for the first time needed an average of 42.000 euros of their own money to have a chance at getting a home. This large sum of money means that the 40 percent increase in first-time buyers in the last quarter was mainly down to residents with higher incomes. “They applied for an average mortgage amount of 458.600 euros and invested 50.000 euros in their own funds,” reported HDN.

Homeowners who moved to a newly purchased property did not need to pay as much money out of pocket as first-time buyers, only paying an average of 35.000 euros for a 600.000 euro home. HDN noted that this threatens to widen the housing gap between existing homeowners and first-time buyers, as well as between higher and lower-income households.

Increase in mortgage applications in the Netherlands

A Dutch association of real estate agents, NVM reported that in the months of July to September this year, house prices were 12,3 percent higher than a year ago. Despite the fact that Dutch housing is getting more expensive, 37.000 homes were sold during the three-month period.

HDN also saw an increase in mortgage applications, with 116.000 people applying for financing - a 22,5 percent increase compared to a year ago. The majority of the applications were to buy a house (65 percent), while the remainder was used for refinancing or additional financing for renovations and sustainability improvements.

Dutch house prices could be stabilising

While house prices have been steadily rising, compared with Q2 this year the cost of housing in Q3 only increased 0,4 percent. According to NVM, this means that house prices in the Netherlands could be stabilising.

A 7,7 percent increase was measured from the first quarter to the second of this year, highlighting the much lower rise in the past quarter. “This stabilisation can be seen as a healthy development,” wrote NVM.