Buying your first home is a big milestone in your life. However, it can also be quite expensive. In fact, in addition to the purchase price, there are numerous other costs you need to consider. In this blog, we take a closer look at the question: how much of your own money you'll need for your first home and share tips on how to avoid draining your bank account.
How much of your own money do you need?
When buying a house, you need your own money, which is money you put in yourself and do not borrow from the bank. The minimum amount you have to put in depends on the purchase price of the house. For example, for a €250,000 home, you should allow for about €10,000 to €15,000 of your own money.
What does your own money consist of?
Your own money consists of several cost items. Below is an overview:
- Purchase costs (k.k.): these are the costs you incur when buying a house. Think of transfer tax, notary fees, registration costs at the land registry and estate agent fees. On average, these costs amount to 2 to 5% of the purchase price.
- Remodeling costs: if you are going to remodel the house, you obviously need money to do so. Keep this in mind when determining your own money.
- Mortgage advice and closing costs: for taking out a mortgage, the bank charges a fee.
- Savings: It is always wise to have a financial cushion for unforeseen expenses.
Tips for saving money
It's understandable that you want to put in as little of your own money as possible. That's why we've listed some tips for saving money:
- Negotiate the asking price of the home with the seller. There may be room for a lower price.
- Compare several mortgage lenders to save on mortgage advice and closing costs.
- Ask family or friends for financial help.
- Consider a start-up loan. This allows you to finance part of the cost of the home without your own money.
Buying a house is a big step and it is important to think carefully about the costs involved. It is wise to calculate in advance how much of your own money you will need so that you don't have any unexpected surprises. However, with proper preparation and a little creativity, you can save on costs. That way, you can enjoy your new home without too much financial stress.
