More first-time buyers applying for mortgages despite record-high home prices

The current high home prices are not deterring first-time buyers in their search for their own homes. Despite the sharply increased home prices, young people under the age of 35 more often applied for a mortgage in the third quarter, reported De Hypotheker.

The mortgage advisor said that the number of applications for a mortgage to purchase a home in July, August, and September was 6 percent higher than in the same period a year earlier. The group of applicants under the age of 35, in particular, grew rapidly. For them, applications increased by 20 percent.

According to De Hypotheker, this also points to a growing number of first-time buyers in the housing market because eight out of ten people in this age category are buying their own home for the first time.

The total number of mortgage applications, including for home modifications or refinancing, rose by 10 percent compared to the same quarter last year. The average borrowed amount rose by 8 percent to just over 346,000 euros.

Home prices are rising rapidly due to the housing shortage. In August, owner-occupied homes became 11 percent more expensive, according to Statistics Netherlands (CBS).

According to De Hypotheker, the increase in mortgage applications is due to increased income and slightly lower mortgage rates. That allows home buyers to borrow more and bid more on a home, said commercial director Mark de Rijke.