Rising number of first-time buyers need parents’ help to afford Dutch homes

More and more parents in the Netherlands are increasing their mortgages to help their children buy their first homes, De Hypotheekshop mortgage advisors have revealed. This means that the wealth gap is widening, as starters who do not have family assistance are at a disadvantage.

First-time buyers struggle in overheated Dutch housing market 

Starters often require additional financial support from family to afford a house in the Netherlands. "In some cases, they are even working with several family members at the same time to free up assets by increasing mortgages: all with the aim of helping a child in the overheated housing market," Martin Hagedoorn of De Hypotheekshop told RTL Nieuws.

Overall, there has been an increase in the number of Dutch residents who are choosing to increase their existing mortgages. Based on figures from Hypotheken Data Netwerk (HDN), taking out a higher mortgage for other reasons, other than buying a new home or switching mortgages, has increased in popularity from 16 percent of total applications in 2020 to 34 percent in 2024.

While there are several reasons to do this, such as home renovations or improving sustainability, parents are often using this extra money to help their children buy a home, according to a survey among mortgage providers, real estate agents and Dutch banks conducted by RTL Nieuws. Family contributions have even become a fixed part of mortgage consultations for some mortgage advisors. 

Inequality among starters when buying Dutch homes

"With starters, we look at the budget, what someone is looking for, and in which area and then we make a plan,” mortgage advisor Randy Rietdijk told RTL Nieuws. “There are often three options for starters who are looking in a popular region: help from family, wait until you earn more or move to another region." It has become especially difficult to purchase a home in competitive areas like Amsterdam, Haarlem, Utrecht and Amersfoort without help from family or large amounts of savings - starters often need over 90.000 euros in savings to afford a home. 

This is worsening inequality in the housing market as residents who have parents who own their own homes have more of an advantage. "In the Netherlands, it will depend much more on who your parents are. You see that the way in which people acquire a home is changing and that family capital is becoming increasingly important," said social geographer at the University of Amsterdam, Wouter van Gent.

Not only is there more inequality, but financial help from family members is also further heating the Dutch housing market. "It can drive up prices. The moment people can borrow more, because they can also borrow from their parents, prices will only continue to rise."