How does a mortgage for first-time buyers differ from one for other buyers?
To a bank, a starter mortgage is simply a standard mortgage for your first home. There is no specific mortgage product exclusively for starters. However, lenders do take your financial situation into account more closely when you're a first-time buyer. They primarily look at your income, any student debt, and your own savings. Beyond financing, there are other benefits to buying your first home that lower the barrier to entry. What makes a starter mortgage unique is the combination of schemes that help first-time buyers. The NHG, the starter exemption, and the starter loan all work together to lower the threshold. We will go through them one by one below.
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How much can you borrow as a first-time buyer?
Your maximum starter mortgage depends primarily on your income. With two incomes, your borrowing capacity is higher. Conversely, any student debt you have will reduce that capacity. If you want NHG, the following applies in 2026: the NHG limit of €470,000.
Three factors determine your maximum amount:
- NHG limit 2026 (€470,000 / €498,200 with energy-saving measures)
- Student debt and your maximum mortgage
- With one or two incomes
Below, we walk through these three factors. This shows you how they work together to determine your borrowing capacity.
NHG limit 2026 (€470,000 / €498,200 with energy-saving measures)
With NHG, your maximum borrowing capacity in 2026 is €470,000. If you take energy-saving measures, you can borrow up to €498,200. NHG provides better protection if you run into payment difficulties. If you lose your job or get a divorce, NHG may be able to waive any remaining debt. Banks consider NHG mortgages less risky, which is why you usually get a lower interest rate.
Student debt and your maximum mortgage
Student debt reduces your maximum mortgage. Lenders count the monthly payments on your student debt as fixed expenses. As a result, there is less room left to spend on your mortgage. Since January 1, 2024, this is based on the monthly payment of your current remaining debt. The original loan amount is no longer a factor.
With one or two incomes
With two incomes, you can often borrow a hundred thousand euros or more extra. Lenders count the second income in full. For a single starter, the maximum is therefore lower than for a couple with two incomes. A rough estimate:
- On a single average income you will borrow significantly less than a couple.
- Two incomes combined count in full and significantly increase your maximum amount.
The exact calculation also depends on your interest rate, your term, and your fixed expenses. Have your maximum mortgage calculated with a mortgage advisor.
Which mortgage types should you choose as a first-time buyer?
As a first-time buyer, you will almost always choose an annuity mortgage or a linear mortgage. Only these two types qualify for mortgage interest tax relief for those taking out a mortgage today. An interest-only mortgage is permitted, but you will miss out on the tax relief for that portion. An annuity mortgage starts with lower monthly payments and ends with higher ones. A linear mortgage works the other way around: you pay more at the start and less later on. For most first-time buyers, the annuity mortgage is the logical choice because the payments remain manageable in the first year.
What is the difference between a first-time buyer mortgage and a starter loan?
A first-time buyer mortgage is your primary financing from a lender. A starter loan is a supplementary loan from your municipality. The starter loan bridges the gap between your maximum mortgage amount and the purchase price. It is therefore an extra on top of your mortgage, not a replacement. The starter loan is managed through the Stimuleringsfonds Volkshuisvesting (SVn). For the first three years, you do not pay any interest or principal on it. Not every municipality offers this scheme, and the budget is sometimes already exhausted. Read more in our guide on what the starter loan exactly entails.
Which schemes can help you as a first-time buyer?
Three schemes can lower the barrier for you as a first-time buyer. NHG provides security and a lower interest rate. The starter exemption eliminates transfer tax. Additionally, the starter loan can bridge a financing gap.
Three schemes for first-time buyers to utilize:
- National Mortgage Guarantee (NHG)
- Starter exemption for transfer tax
- Starter loan via your municipality
We will briefly go through each scheme and indicate when you are eligible.
National Mortgage Guarantee (NHG)
NHG acts as a safety net in case of payment problems. If you lose your job or get a divorce, NHG may be able to waive a residual debt. Banks consider NHG mortgages less risky, which is why you receive a lower interest rate in return. What National Mortgage Guarantee is, we explain in detail in our guide.
First-time buyer transfer tax exemption
With the first-time buyer exemption you pay no 2% transfer tax on your first home. You must be between 18 and 35 years old and the purchase price must be under €555,000 . In addition, you must live there yourself, as the property will be your primary residence. You may only use this exemption once in your lifetime. For an average starter home , this can easily save you thousands of euros in closing costs.
Starter loan via your municipality
The starter loan is a supplementary loan from your municipality, provided through the Stimuleringsfonds Volkshuisvesting (SVn). Not every municipality offers this scheme, and the budget is sometimes already exhausted. Check the SVn Loan Checker for the current status in your municipality.
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How do you take out a starter mortgage?
You take out a starter mortgage in five steps. You start with a meeting with a mortgage advisor and end at the notary. With a mortgage certificate, you arrange your financing before you start searching. This means that during a viewing exactly what you can offer. The process consists of five steps:
- Schedule a free mortgage consultation.
- Request a mortgage certificate.
- Find a home within your budget.
- Make an offer and request a mortgage quote.
- Sign at the notary.
At homeup, you can request a mortgage certificate after a free initial mortgage consultation. This lets you know in advance exactly how much you can offer. You can then make an offer without a financing contingency. Sellers find this attractive because they are certain the sale won't fall through due to financing issues. Furthermore, all buyers on the homeup platform are financially pre-screened. On average, homeup buyers purchase a home three months faster, precisely because their financing is already secured.
How much of their own money do first-time buyers need for a mortgage?
For a first-time buyer mortgage, you always need your own capital. Lenders will finance a maximum of 100% of the property value. Consequently, you pay the closing costs and advisory fees yourself. Through homeup, you can expect to pay approximately €12,000 in closing costs by utilizing the first-time buyer exemption. Without that exemption, transfer tax is added on top. That can easily save you thousands of euros. These closing costs primarily consist of the following items:
- A buying agent charges a commission or a fixed fee, such as €2,999 at homeup.
- A mortgage advisor often charges several thousand euros for advice and mediation.
- The notary fees for the deed of transfer and mortgage deed are around two thousand euros.
- For the valuation report required by the lender, you will pay a few hundred euros.
- If you opt for NHG, you pay a one-off guarantee commission on your mortgage.
- A structural survey costs €250 to €550.
You only need extra personal funds if your offer exceeds the appraised value, as the bank will not finance that difference. If you do not have savings set aside, read our explanation on buying a house without personal funds and what the alternatives are.
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