Homebuyers in Netherlands now need average €160,000 of their own money to afford a home

Homebuyers in the Netherlands are facing an ever-widening gap between how much money they can borrow on a mortgage and the rising home prices. The average home buyer currently needs almost €160,000 of their own money to afford an average home, De Telegraaf reports based on figures from the Independer. Six months ago, the shortfall was still €125,000.

According to the Independer, the average homebuyer can get a mortgage of around €360,000. The average home currently costs over €520,000.

Single-income earners, in particular, are out of luck. “On average, this group can currently borrow just over €300,000,” said Marga Laknreijer-Kos, a mortgage expert at the comparison site. “That sounds like a substantial amount. But don’t forget that there are also dual-income households fishing in the same pond. This creates even more competition in the already very tight market.”

Dual-income households can borrow an average of around €475,000 together to purchase a home. That still puts them €45,000 short of the average home price, but in a much better position than single-income households, who face a shortfall of €220,000 on average.

“The most important thing is to bring as much of your own money as possible. If you have time and space to save, use it,” said Lankreijer-Kos.

It also pays to do some research, she advised. “For example, there are new construction projects that prioritize first-time buyers or former students. It’s also helpful to talk to mortgage advisors in the area. They are usually well-informed about the latest developments in the area and can therefore offer valuable tips.”