Starterslening (Starter Loan)

The key points at a glance

Buying your first home can be quite exciting. There is a lot to consider and many things to keep in mind. One of the biggest challenges can be the financing. As a first-time buyer, you often don't have enough savings to buy a home and you can't always get the maximum mortgage. Fortunately, there are various options to help you buy your first home, including the starterslening (starter loan).

1. What is the starterslening?

It is a supplementary loan on top of your first mortgage. It is designed for first-time buyers who don't have enough savings to cover the additional costs or don't qualify for the maximum mortgage.

The loan is provided by some municipalities and is available under certain conditions. It is important to know that the starterslening is a loan and therefore has to be repaid. Penalty-free repayment is possible.

2. Conditions for the starterslening

To qualify for the starterslening, you need to meet certain conditions. These conditions may vary by municipality, but generally the following apply:

• You are between 18 and 35 years old
• You are buying your first home
• Your income does not exceed a certain amount
• You must take out the loan with the Nationale Hypotheek Garantie (NHG, the national mortgage guarantee)

3. How does the starterslening work?

If you meet the conditions and your municipality offers the starterslening, you can submit an application. The amount of the loan depends on the purchase price of the home, your income, and the conditions set by the municipality.

You can use the starterslening to supplement your first mortgage, for example to cover the additional costs. The loan has a term of 30 years and you pay interest and repayments. However, for the first three years you do not have to pay any monthly costs. After this period you start paying interest and repayments. Penalty-free repayment is possible.

Advantages

The loan can offer many benefits for first-time buyers:

• You can borrow more and therefore make a higher offer on a home
• You get the opportunity to buy your first home, whereas otherwise you might not qualify for a mortgage at all
• The loan can lower your monthly costs in the first years because you don't pay interest or repayments for the first three years
• The loan can be combined with other schemes, such as the Nationale Hypotheek Garantie and the energiebespaarlening (energy savings loan)

Disadvantages

Alongside the advantages, there are also disadvantages to keep in mind:

• The loan is an extra loan on top of your first mortgage, which means you will ultimately pay more in interest and repayments
• The loan has to be repaid over time, which can lead to higher monthly costs if your income doesn't increase
• Not all municipalities offer a starterslening and the conditions and amount of the loan can vary per municipality

Frequently asked questions

What is the interest rate on the starterslening?

The interest rate varies by municipality. On average, the rate is between 1 and 2 percent.

Can I combine the starterslening with other subsidies or schemes?

Yes, it is possible to combine the loan with other subsidies or schemes, such as the NHG or the energiebespaarlening (energy savings loan).

Can I also use the starterslening to buy a newly built home?

Yes, in most municipalities you can also use the loan to buy a newly built home.

How much can I borrow with the starterslening?

The amount of the starterslening depends on various factors, such as your income and the purchase price of the home. On average, the amount is between €20,000 and €55,000. Want an indication for your own situation? You can easily calculate your starter loan.