Mortgage Applications Rise 4.6% in H1: First-Time Buyers Increasingly Turn to Starter Loans

Introduction

The Dutch housing market continues to evolve, and the latest figures from the Land Registry highlight a notable upswing in mortgage applications. Between January and June 2026, nearly 217,000 new mortgages were registered—4.6% more than in the same period last year. Alongside this increase, an emerging trend sees first-time buyers taking out starter loans to bridge the gap between their mortgage and the ever-rising purchase prices. In this article, we explore the numbers, explain starter loans, and offer practical insights for anyone looking to buy or rent in the Netherlands.

Key Mortgage Trends in the First Half of 2026

According to the Land Registry’s mid-year report:

• Total new mortgages: 217,000 (up from 207,000 in H1 2025)
• Combined mortgage value: €84.8 billion (8% higher than H1 2025, but below the €95.2 billion record set in late 2025)
• Average mortgage amount per home purchase: €517,000 (5% increase year-on-year)

Most of these mortgages financed primary residences. The modest uptick in average mortgage amounts largely mirrors slower—but steady—home price growth. Dutch buyers are also adjusting their financing strategies to cope with stricter lending norms and elevated property values.

The Rising Role of Starter Loans for First-Time Buyers

A starter loan (in Dutch, starterslening) is a secondary, municipally backed loan designed to help first-time buyers in the Netherlands. It bridges the gap between the maximum mortgage permitted by a bank and the market price of the home. Key starter loan facts for H1 2026:

• Over 8% of first-time buyers used a starter loan, up from just over 6% in H1 2025
• Average starter loan value: €37,000

Starter loans typically feature favorable terms, such as lower interest rates or delayed repayment schedules. They are offered through local municipalities (gemeenten) or housing corporations (woningcorporaties). By combining a standard mortgage with a starter loan, buyers can invest less of their own capital up front—making homeownership more accessible in high-price areas.

Shifting Financing Patterns: More Personal Equity Required

While mortgage applications are climbing, buyers are also tapping more personal funds. In H1 2026, mortgages covered an average of 87% of the purchase price, compared to 92% in the first half of 2019. This shift reflects stricter loan-to-value (LTV) rules aimed at ensuring borrowers maintain a financial buffer:

High-value properties require larger down payments, pushing buyers to save more or rely on family gifts. As housing costs climb, having a robust personal fund enhances affordability and reduces monthly debt burdens.

What This Means for Prospective Buyers and Renters

For first-time buyers, the dual approach of combining a mortgage with a starter loan can make the difference between renting and owning. However, securing both requires early preparation:

• Assess your eligibility for a starter loan with your local gemeente.
• Factor in additional costs: transfer tax, notary fees, and moving expenses.
• Maintain a financial buffer to absorb interest rate fluctuations.

Prospective renters should also stay informed. While the ownership route evolves, the rental market remains competitive in cities like Amsterdam, Rotterdam, and Utrecht. Understanding mortgage trends can guide your decision: if long-term ownership feels out of reach, renting via platforms like Luntero ensures you find suitable homes quickly and transparently.

Broader Implications for the Dutch Housing Market

The uptick in mortgage applications and starter loan usage underscores ongoing affordability pressures in the Netherlands:

• Demand still outpaces supply, keeping prices elevated.
• Stricter lending criteria safeguard financial stability but require larger down payments.
• Starter loans play a crucial role in enabling young households to enter the market.

Policymakers continue to debate measures to boost housing supply—such as easing zoning rules and incentivizing sustainable developments. Meanwhile, prospective buyers will need to balance their aspirations with prudent financial planning.

Tips for First-Time Buyers in the Current Market

1. Start saving early: Aim for at least 10–15% of the home price as a down payment.
2. Research starter loan programs: Each municipality sets its own criteria; visit your gemeente’s website or consult a housing corporation.
3. Get pre-approved: A mortgage offer in principle clarifies your budget and strengthens your position when making an offer.
4. Consult professionals: Mortgage advisors and notaries can help you navigate complex paperwork and tax implications (e.g., transfer tax exemptions for first-time buyers).
5. Compare offerings: Evaluate different mortgage types (fixed vs. variable rates) and consider future interest rate scenarios.

Conclusion

The first half of 2026 saw a clear rise in mortgage applications and growing reliance on starter loans among first-time buyers. As affordability challenges persist, combining a standard mortgage with a municipally backed starter loan can open the door to homeownership. At the same time, renters can leverage insights into market trends to make informed decisions.

Whether you’re looking to buy or rent, Luntero offers the easiest way to find rental listings across the Netherlands. Discover your next home today by visiting Luntero.