Significant increase in mortgage applications in 2024, many from younger home buyers

The mortgage market grew significantly in the Netherlands last year after the dip it experienced in 2023, statistics provided by the mortgage sector show. Mortgage advisor chain De Hypotheker noticed that young home buyers have been applying for a mortgage more often lately.

“First-time buyers have profited from the declining mortgage interest rates combined with the wage increase in the last year. This has a positive effect on the maximum amount that they can borrow, which in turn makes it easier for them to buy a first home,” said Mark de Rijke, commercial director of De Hypotheker.

Het Hypotheken Data Netwerk (HDN) saw a total of 483,922 mortgage applications last year. This is around 29 percent more than in 2023. Most of the Dutch mortgage applications go through HDN. They offer a platform that facilitates the provision of credit. As a result, the figures from the cooperative association of mortgage, credit, and insurance companies provide a broad picture of the mortgage market.

De Hypotheker reported on the basis of its own figures that there was an increase of 20 percent in the number of mortgage applications in the fourth quarter. Young home buyers, in the age category of up to 35 years old, had the most significant increase within this of 33 percent.

According to the chain, the average mortgage fee is 352,000 euros. De Hypotheker expects this fee to increase further this year due to the strong rise in housing prices.

Although more and more has to be paid for a home, the prospects for younger home buyers are not bad, according to De Rijke. "The prospects for young home buyers are relatively favorable in 2025. For example, the threshold for the National Mortgage Guarantee has been increased to 450,000 euros, and home buyers between the ages of 18 and 35 do not pay transfer tax for the purchase of a home for sale of up to 525,000 euros."

The huge tightness in the housing market is still an important issue, he stated. As a result, there will probably be significant overbidding again this year, he predicted. “First-time buyers suffer from this, especially since they have no equity to contribute to a bid."