The municipality of Westerveld makes it easier for first-time buyers to borrow money for their first home. The city council tonight approved the plan to relax the requirements.
The reason for reviewing the requirements was the number of people who could claim the loan. Until now, buyers could qualify for a loan of up to 10 percent of the purchase price for a house of up to 225,000 euros.
“From 2022, however, mortgage interest rates and purchase prices of homes will have risen sharply,” says the municipality of Westerveld. “Starters who want to buy their first home are currently (even more) limited in their options. There is virtually no supply available below €225,000.”
Under the new rules, a loan of a maximum of 10 percent of the purchase price can be provided if the purchase amount falls below 80 percent of the so-called National Mortgage Guarantee limit, the NHG limit. This indicates the maximum mortgage amount for which a home buyer is eligible for the NHG guarantee.
This means for 2025 that the purchase price of the house may be a maximum of 360,000 euros for a starter loan of a maximum of 36,000 euros. That can grow as house prices change.
Initially, the municipality of Westerveld wanted to set this percentage at 75 percent, which currently equals a price of 337,500 euros. But this does not go far enough for a number of factions. CDA councilor Adri van der Weyde states: “If we make a starter loan available to retain our young people, there must also be homes for sale that meet the conditions of the loan. But a starter loan is a means. The goal is much build more homes in Westerveld.”
Janny Mones (Municipal Interests) did not want that: “We are concerned that after three years the participant will have such a burden on his shoulders that he will no longer be able to bear it.” According to the faction, the loan must be repaid within a maximum of thirty years.
Frank Foreman (VVD) adds: “It is sympathetic to set the limit as high as possible, but also a way to drive up prices. The VVD has difficulty with this percentage, but understands the idea.”
After a debate, a motion to adjust the percentage was ultimately adopted unanimously by 80 percent.
Previously, residents had to be under 35 years old for the loan and have an economic tie with the municipality. These conditions are off the table because in some cases first-time buyers only purchase their first home at a later age.