Q3 Mortgage Applications Surge 16% with First-Time Buyers on the Rise
Mortgage applications in the Netherlands jumped by 16% in Q3, exceeding 134,000, as first-time buyers capture a growing share of the housing market. Rising applications are driven by both new home purchases and mortgage increases for renovations.
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Understand Dutch rental terms before you sign the lease.
Renting in the Netherlands comes with unique rules, legal phrases, and housing abbreviations that can be tricky. The Luntero Rental Glossary is your guide to every rental term — from tenancy agreements, deposits, and agency fees to utility charges, rent control, and tenant rights. Whether you’re new to renting, moving as an expat, or just want to avoid hidden costs, our glossary helps you rent smarter, negotiate better, and protect yourself from mistakes.
Q3 Mortgage Applications Surge 16% with First-Time Buyers on the Rise
The Dutch housing market remains dynamic and competitive, with the Mortgage Data Network (HDN) reporting a 16% year-on-year increase in registered mortgage applications in the third quarter of 2024. Over 134,000 applications were submitted for both home purchases and mortgage increases, marking a significant uptick compared to Q3 of 2023. This growth underscores a renewed momentum in home ownership, particularly among first-time buyers, who now represent more than four in ten new homeowners.
Surge in Mortgage Applications Across the Board
HDN’s quarterly figures capture nearly all mortgage activity in the Netherlands, showing 83,600 applications for new home purchases (the buyers’ market) and 56,000 for mortgage increases (the non-buyers’ market). Within the buyers’ segment, upscalers—homeowners selling their current property to move into a more expensive home—formed the largest group with 17,990 applications. Meanwhile, those tapping into additional borrowing for renovations topped the non-buyers’ market at 22,370 applications.
On average, mortgage seekers applied for €374,000 in financing, up 3% from a year ago. Correspondingly, the average home value climbed 4% to €513,000. These figures reflect both rising property prices and the willingness of buyers to stretch their budgets in a competitive landscape.
The Rise of First-Time Buyers
A standout trend in Q3 is the growing presence of first-time buyers in the owner-occupied market. According to the Land Registry, over 40% of homes sold in the first half of 2024 were purchased by newcomers, compared to just 30% in 2018. Several factors are fueling this shift:
Joint Purchases Among Couples: First-time buyers are increasingly purchasing homes together, often opting for terraced houses that stay within budget.
Investor Sell-Offs: A wave of investors selling former rental apartments has introduced more affordable properties into the market, creating fresh opportunities for entry-level buyers.
Greater Market Fluidity: Upscaling by existing homeowners has opened up more supply, as those moving to pricier homes free up entry-level properties.
Despite these positive signs, first-time buyers still face significant affordability hurdles. High property prices and the requirement for a sizable down payment remain barriers for many.
Regional Variations in Application Growth
HDN’s data reveal that mortgage activity rose in every province, led by Utrecht and Drenthe in terms of overall application growth. However, home price escalations varied across regions:
Utrecht: Retains its status as the most expensive province, with an average home value of €608,200.
Friesland and Groningen: Saw the steepest annual price increases, reflecting growing interest in northern provinces as remote work and quality-of-life factors influence buyer decisions.
These regional trends highlight the shifting geography of demand, as affordability pressures in core urban markets push some buyers to explore less expensive locales.
Affordability Challenges Remain
While more first-time buyers are entering the market, affordability remains a central concern:
High Average Prices: The gap between first-time buyers and upscalers has widened. In Q2 of 2024, upscalers purchasing jointly paid an average of €640,000—nearly €200,000 more than first-time couples.
Equity Advantage: Upscalers can leverage the equity in their current homes to secure larger loans, a benefit first-time buyers lack.
Down Payment Requirements: Dutch mortgage rules mandate borrowers to cover not only a 10% down payment but also transaction costs, pushing upfront expenses to nearly 15% of the property value.
Government initiatives such as huurtoeslag (rental allowance) are not available for homeowners, leaving some prospective buyers reliant on family assistance or savings to meet the financial threshold.
What It Means for Renters and Prospective Buyers
For renters considering a future purchase, the current market dynamics offer both opportunities and cautionary lessons:
Increased Supply from Upscalers: More homeowners trading up means more starter homes entering the market.
Competitive Financing: Banks remain willing to lend, but borrowers must demonstrate strong income stability and a healthy savings buffer.
Market Timing: Monitoring regional price trends can pay off, as emerging hotspots may offer better value than traditional urban centers.
Prospective buyers should also explore government-backed schemes for first-time homebuyers, such as the Nationale Hypotheek Garantie (NHG), which can lower interest rates and offer added protection in economic downturns.
Outlook for Q4 and Beyond
Looking ahead to Q4 of 2024, economists expect mortgage applications to remain robust if interest rates stabilize and new housing stock gradually comes online. However, affordability pressures and the path of monetary policy will be key variables. Should banks tighten lending criteria or rates rise again, the momentum among first-time buyers could slow.
Yet, the upward mobility of owners and the growing pool of investor-released properties suggest a sustained pipeline of entry-level homes. For the rental market, this could mean increased tenant turnover as more renters transition to homeownership.
Conclusion
The 16% rise in mortgage applications in Q3 and the growing share of first-time buyers signal a more dynamic Dutch housing market. While affordability challenges persist, increased supply from upscalers and investor sell-offs are helping newcomers secure homes.
For renters and prospective buyers looking to navigate these trends, having access to timely listings and expert advice is essential. Discover the easiest way to find rental listings in the Netherlands—visit Luntero today!
Luntero Rental Glossary
Understand Dutch rental terms before you sign the lease.
Renting in the Netherlands comes with unique rules, legal phrases, and housing abbreviations that can be tricky. The Luntero Rental Glossary is your guide to every rental term — from tenancy agreements, deposits, and agency fees to utility charges, rent control, and tenant rights. Whether you’re new to renting, moving as an expat, or just want to avoid hidden costs, our glossary helps you rent smarter, negotiate better, and protect yourself from mistakes.
