Average mortgage amount rises to record €346,572

The average mortgage amount for the purchase of a new home rose to the highest level in the third quarter of this year, reports De Hypotheker. According to the mortgage advisor, the average mortgage amount rose 8 percent to 346,572 euros, surpassing the previous record from the first quarter of 2022 of 337,384 euros.

Due to increased salaries and a slight decrease in mortgage interest rates, buyers have a greater borrowing capacity, which increases competition in the housing market, the advisor said. This means that overbidding is becoming more common, which has a strong upward effect on house prices, which are now even above the peak in 2022. According to De Hypotheker, this combination of factors has significantly increased the average mortgage amount.

The increase in the average mortgage amount was greatest in the provinces of Utrecht, Groningen, and Limburg and lowest in Noord-Holland. In provinces outside the Randstad, the average mortgage amount is much lower because home prices are lower.

According to the mortgage advisor, young home buyers up to 35 are the most active in the housing market. The average mortgage amount of young buyers aged 20 to 25 is much lower than for other age groups. This is because they often buy a less expensive home. Home buyers between 40 and 45 take out the highest mortgage, while the average mortgage amount decreases again as they get older. The average mortgage amount is the lowest among people aged 60 and over.

According to De Hypotheker, the borrowing capacity of home buyers has improved in the past year due to the fall in mortgage interest rates and wage increases. This especially makes a difference for young home buyers, which is why more and more first-time buyers are entering the housing market.

According to consultancy firm IG&H, first-time buyers also play an important role in the ongoing recovery of the mortgage market. For example, mortgage turnover rose to its highest level in two years in the third quarter of 2024. The mortgage turnover for first-time buyers increased by almost 34 percent and this group took out more than 20 percent more mortgages in the third quarter.