What is a Starter Loan?
A starter loan is an additional loan that starting homeowners can take out on top of their mortgage. The loan itself comes from the municipality; the government pays 50% of the financing costs. You do not have to pay interest and repayments for the first three years. Moreover, the interest can be deducted from the tax.
Is your municipality participating?
There are 388 municipalities in the Netherlands and around 200 municipalities participate in this scheme. On the website of Stimuleringsfonds Volkshuisvesting you can see whether your municipality is also participating in this favorable tax arrangement. If your municipality participates, there is a second bump. You must meet the conditions. Is the (joint) income sufficient? How much equity is there? Third parties may not guarantee you the repayment of the start-up loan. Also, the starter loan may not be included if you move to another house. The interest for the first mortgage must also be at least 10 years.
Sole traders mortgage
If you are self-employed, you can also apply for a starter loan. Just as with corporate loans, you must be able to submit the full annual reports (balance sheet, profit and loss account) of the last 3 years. These reports must be prepared by a recognized agency.
Too few homes
Now that the economy is picking up, it appears that there are still too few starter homes. Especially in large cities such as Amsterdam it is difficult to buy a starter home. The housing market is overheated. Singles in particular have a hard time. The prices are so high that you have to have a very good job (or enough savings) to buy a house alone. Mortgage adviser de Hypotheker saw the number of single starters with a mortgage decrease by 28%. One of the reasons for the high house prices is the shrinking housing supply. The Association of Estate Agents estimates that there is a shortage of 200,000 homes.
To rent a house
Because single starters are often unable to buy a home, they are dependent on expensive rental properties. Earnings up to approximately 35,000 euros receive housing benefit. If you are above this limit, you will not be eligible for a cheaper rental home from the social sector, but you must look for a home on the free market. There are already several large investment parties from abroad that have taken over large numbers of rental properties from rental corporations. These homes are first refurbished and then put back on the housing market at a considerably higher price.