More mortgage applications from first-time homebuyers in April than the previous 5 years

The number of first-time homebuyers that applied for a mortgage in April was the highest it has been in five years, mortgage data firm HDN reported. Around 14,500 first-time buyers applied for a mortgage in the Netherlands last month, an increase of 21 percent compared to April 2023, when just under 12,000 applied.

The average mortgage payment that first-time buyers sought was also the highest it has been for five years. The requested amount was 353,000 euros on average, HDN said.

Some 45,000 mortgage applications were filed by all home purchasers in April, over 40 percent more than in April 2023. The mortgage market had a strong recovery last month compared to 2023, according to the organization, which says it processes the majority of mortgage applications in the country.

The organization said the mortgage market bounced back strongly after a dip in March. This was the most mortgage applications in a single month since June 2022.

The market flourished for those looking to buy a home, as opposed to those who refinanced an existing loan last month, HDN said. Of those who applied for a mortgage, more than 27,000 went on to complete the purchase of a home, which is about the same as the number of applicants in April 2020, a record year.

“If we look at the number of mortgage applications in April over the past five years, we see a strong recovery of the market compared to 2023. We also see that the market has not yet reached the level of 2022 and earlier. This is mainly due to the sharply reduced refinancing market,” HDN wrote.

It is unknown whether more people actually bought a house considering the tight housing market. Statistics Netherlands (CBS) will report its numbers in May, and the realtor association NVM will share its statistics in July.