Mortgage applications fall in the Netherlands, but one group buys more

Higher mortgage interest rates in the Netherlands are slowing down the rapid growth of house prices, but a persistent housing shortage means property values are highly unlikely to drop any time soon. Data shows that mortgage applications have fallen for the first time in three years, even as younger buyers continue to defy the cooling trend.

Higher interest rates curb Dutch housing price forecasts

ABN AMRO expects house prices in the Netherlands to rise by 3 percent in 2026 and 4 percent in 2027. While property values are still climbing, the pace has slowed significantly compared to recent years.

"Due to declining demand and higher mortgage rates, house prices are rising less sharply," ABN AMRO said in its latest Housing Market Monitor (Woningmarktmonitor). Mortgage interest rates have been rising since early 2025, meaning that prospective buyers can borrow substantially less than before.

The bank stressed that despite a cooling in demand, a major drop in prices remains unlikely due to the ongoing shortage. In its official statement, ABN AMRO noted, "In short, higher mortgage rates curb demand, but due to the housing shortage, homes remain expensive."

First-time buyers face strict borrowing limits in the Netherlands

First-time buyers are feeling the financial squeeze most acutely. These buyers often have to borrow close to their maximum limit, making them less able to absorb sudden price increases with a larger mortgage.

The bank expects wages to increase across the country this year and next, but not enough to fully offset climbing interest rates. Economic uncertainty is also prompting people in the Netherlands to be more cautious about dipping into their personal savings.

Consequently, households are becoming increasingly hesitant when it comes to major purchases. This wariness is directly impacting the volume of new transactions on the property market, leaving many internationals stranded in the highly competitive rental sector.

Mortgage applications drop for the first time in three years

Mortgage adviser De Hypotheker recorded a 3 percent year-on-year decrease in total mortgage applications during the second quarter of 2026. This represents the first annual decline the adviser has seen in three years, driven primarily by a 13 percent slump in applications for renovations and sustainability measures.

While applications from the 25 to 35 age bracket saw first-time buyers plummet by 7 percent, buyers under 25 completely bucked the trend. This youngest demographic saw a staggering 96 percent year-on-year increase in applications for buying a home in the Netherlands.

De Hypotheker attributed this surge to stricter rental regulations prompting landlords to sell off cheaper properties, alongside financial help from wealthy parents. Meanwhile, the national average mortgage amount crawled up by just 1 percent to 365.850,00 euros, with sharp regional divides seeing amounts jump by 9 percent in Utrecht but drop in Groningen.