The last quarter of 2024 saw a sharp rise in the number of mortgage applications in the Netherlands. Mortgage advisor De Hypotheker has reported that applications increased by 20 percent in the last few months of the year, with more than half being submitted by younger homebuyers.

Sharp rise in number of mortgage applications in the Netherlands

Last year, the number of applications submitted for mortgages was 15 percent higher than the year before. The fourth quarter of 2024 also saw an increase of 20 percent compared to Q4 2023. Two-thirds of all mortgage applications in Q4 were for the purchase of a home, while around 28 percent were for home renovations or making a house more sustainable, among other things.

Not only were there more mortgage applications, but the average mortgage amount also went up by 9 percent to 351.892 euros, according to De Hypotheker. This is expected to continue to rise as the cost of buying a house in the Netherlands has seen significant increases in recent months. Housing prices and rental costs are predicted to get higher in 2025 due to increasing wages, housing shortages and the drop in mortgage interest rates.

Younger Dutch residents buying homes more often

According to the mortgage advisor, in Q4 of 2024 the number of young homebuyers who applied for a mortgage increased by 33 percent compared to the same period the year before. In fact, 53 percent of all mortgage applications for the purchase of a Dutch property from October to December last year were from homebuyers aged 35 years or younger. 

Mark de Rijke, commercial director of De Hypotheker, attributes the fact that an increasing number of young residents are becoming first-time buyers to falling mortgage interest rates and wage increases. “This has a positive effect on the maximum loan amount, which makes it more favourable for young buyers to buy a first home.”

The limit for the National Mortgage Guarantee being increased to 450.000 euros, combined with the fact that young homebuyers are exempt from paying transfer tax for the purchase of a home that costs no more than 520.000 euros, means that “prospects for young home buyers are also relatively favourable in 2025.” However, overbidding and the tight housing market in the Netherlands make it more difficult for first-time buyers to get a foot on the property ladder. 

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