Whether you are buying a home as a single or couple, most of the process is the same. A mortgage is mainly based on your income. The more income, the higher the maximum mortgage amount.
Quick link: Donation or loan | Tips for a higher mortgage | Single | Couple
What can you borrow from the bank?
Apart from your income, the value of the property you wish to buy determines your maximum mortgage amount. You can only mortgage 100% of the value of the house. The home value is determined in a valuation report. If you have plans for energy-saving modifications to the house, you may, under certain conditions, finance up to 106% of the value of the house.
Do you receive a donation or loan?
Donation
Maybe your parents may want to make a donation for the purchase of your house. This donation can then be included in the mortgage advice. It allows for the purchase of a home that is more expensive than your maximum mortgage amount. The donation is tax-free for donor and recipient under certain conditions.
Family loan
Borrowing money from family is also an option for (extra) financing for the purchase of a house. The money borrowed must be used for the purchase or improvement of the house. Interest must be payed on the loan. When all conditions are met the payed interest is tax deductable. It’s not uncommon a donation is made in return for the payed interest.
Tips for a higher mortgage amount
Starter loan
Some municipalities offer a starter loan. A starter loan is only possible for the purchase of your first house. It is a loan for the part that you are short of your maximum mortgage amount. Want to buy a house at a price of € 160,000 with a maximum mortgage amount of € 150,000? Then you can apply for a starter loan of € 10,000 from your municipality. You do not pay interest on this loan for the first three years. The mortgage amount may not exceed the NHG limit of € 325,000. Please check if your municipality offers the option of starter loan.
Pay off debts
Your current debts are just as important as your income. They have a negative effect on your maximum mortgage amount. It can sometimes be more beneficial to pay off a debt first, if possible, before taking out a mortgage. Our advisers help you optimize and structure your financial situation. You can view your dutch registered debts on the website of the BKR foundation.
I am single
Where we have to do many things twice when advising couples, this is not necessary for you as a single. This difference is reflected in our reduced consultancy costs for singles.
What should couples take into account?
Mortgage on one or two incomes?
A mortgage is based on the income of one or more applicants. Dual earners can choose whether the mortgage application should be based on one income or two. It goes without saying that with two incomes you end up with a higher maximum mortgage amount. With both incomes you must be able to pay interest and repayments now and in the future. If one of you wants to work less in the future, it is important to take this into account in the financial advice.
Married, partnership or cohabitation contract
Although you do not need to establish a form of cohabitation for a mortgage, it is still good to obtain advice about this. A marriage, a registered partnership or a cohabitation contract each offer security in its own way. Particularly with major life events such as a death or divorce, you want everything to be well organized.
Has a partner already had a home?
Maybe you buy a first home together, but you or your partner have bought a house before. That means that one of you already has a home of your own. That past also affects the other partner. This requires extra attention in the tax return in order not to miss out on mortgage interest relief.
We are happy to advise you!
Call us on +31 (0)20-4651951 for a first introduction. Or fill in our contact form and we will contact you.
