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Tips from Hilay Eker, mortgage adviser at ABN AMRO

Hilay, who purchased her first home last year as a single buyer, advises clients on their mortgage options. Here are Hilay’s tips:

  1. Type of mortgage


    First-time buyers can choose between a linear or annuity mortgage. Annuity mortgages could be more suitable for first-time buyers, as you pay the same amount every month. That means you know exactly what to expect. A linear mortgage is cheaper in the long run, but you’ll pay back more in the first years of the mortgage and your monthly repayments will be a bit higher.

  2. Fixed-rate mortgage


    Explore whether a fixed-rate mortgage could work for you.

  3. Regelingen voor starters


    • If you want to make sustainable home improvements, you can take out a bigger mortgage up to 106% of the value of the property. This is subject to certain conditions.
    • Consider taking out an NHG (National Mortgage Guarantee) mortgage to benefit from the lower NHG rate. The NHG also gives greater protection from falling into debt if you can no longer afford your mortgage due to a divorce, job loss or disability.
    • This is the last year in which parents may give their children a tax-free gift to buy a house.
    • Buyers aged younger than 35 pay no property transfer tax on properties with a purchase price below €440,000. If you’re under 35 and have got your eye on a property you can afford, you can claim that tax break.
    • Subject to certain conditions, you can apply for an additional first-time buyer loan. This loan makes up the difference between the home’s purchase price and your borrowing limit. You won’t need to pay off interest or any of the loan amount for the first three years.

  4. Extra tips for first-time buyers


    • Stick to your budget – don’t offer more than you can afford. While that may get you the home you want, you run the risk of getting into financial difficulties.
    • Discuss all the fringe benefits of your employment contract with your mortgage adviser. Our calculation of your borrowing limit can include things like a thirteenth month, year-end bonus or development budgets. The same goes for pay increases in the near future: if you’re due for promotion and a pay increase, make sure you can provide evidence of that.

Got a question about your financial situation?

If you’re wondering what an article means for you, or have a different question about money matters, such as your pension, early retirement and smart ways to build capital, our Preferred Banking team would be happy to help you. All our experts speak English fluently. All advice is free of charge, with no strings attached.