Incentives for first-time buyers in Amsterdam

Higher bank funds and new loans

First-time buyers are the lifeblood of the property market – vital to its health, which is great news for residents of Amsterdam now looking to get on the property ladder.

On 1 July 2009, the government temporarily increased the National Mortgage Guarantee (Nationale Hypotheek Garantie) from 265,000 euros to 350,000 euros, thereby boosting the funds banks are willing to lend.

Adding to that, new homebuyers can now also apply for a *VROM starter loan (De VROM Starterslening). The incentive has been brought in to bridge the difference between the total purchase of a new home and the maximum amount you can borrow from the bank based on your income and the rules of the NHG. For more information, visit Wonen. (In Dutch only).

Benefits and conditions of the starter loan

The starter loan accounts for up to 20% of the acquisition. The acquisition costs are the sum of the purchase price plus additional costs. This means that 80% of the acquisition should be financed with a mortgage based on income.

A major benefit of the loan is that it comes with a fixed-interest period of 15 years, the maximum term is 30 years. You also don’t pay any interest or loan repayments for the first three years. After this point, you start paying interest and repayments if your income has risen enough.

You can only apply for the loan when you have found a suitable property (not before) and you must meet certain criteria.

Conditions for your personal situation:

• You have not already bought the house.

• You are Dutch or have a valid residence permit.

• The gross annual income of your household is up to 63,800 euros (amount subject to change).

Conditions for your new home

• The house is located in Amsterdam.

• The house is suitable for permanent habitation.

• You occupy the property itself.

• You are not already claiming a Private Housing Contribution (koopsubsidie) under the Act Promoting Eigenwoningbezit.

• The acquisition of the property does not exceed € 350,000 (this is the purchase price + the additional costs and interest during construction, transfer, mortgage costs, closing fees, brokerage costs, transfer deed and guarantee commission NHG. Amount subject to change).

The conditions are specified in the VROM starter loan pack. (In Dutch only).

Useful links

• If you have questions about the terms of the Starter Loan, email Rob Alders, financial planner at Public Housing: r.alders @ wonen.amsterdam.nl

• To learn more about the Private Housing Contribution (koopsubsidie), visit this website.

Related articles

Housing Market

Buying property in Amsterdam

Housing Rights

*Note: VROM is the Ministry of Housing, Spatial Planning and the Environment in the Netherlands.