Increasing mortgages for children, more and more parents are doing it: 'Gap between starters is increasing'
A growing group of parents are increasing their existing mortgage to help their children buy a house, according to advisors at De Hypotheekshop. This puts starters whose parents cannot help financially at a disadvantage.
"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," says Martin Hagedoorn of De Hypotheekshop.
According to Hagedoorn, this development ensures that the gap between starters with and without parental help is widening.
Figures from the Mortgage Data Network, which records sales data from most mortgage providers, show that more and more people are choosing to increase their existing mortgage.
The graph below shows that the 'other' category is increasing significantly. This category consists almost entirely of mortgage increases. In 2020, only 16 percent of mortgage applications fell into this category, now that has increased to 34 percent.
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There are various reasons why people choose to increase a mortgage. For example, to renovate or make a house more sustainable. A survey by RTL Nieuws among mortgage providers, real estate agents and banks shows that parents are increasingly using the money to help their children buy a house.
Help from parents is now even a fixed part of the consultation, says mortgage advisor Randy Rietdijk. "With starters, we look at the budget, what someone is looking for and in which area and then we make a plan. 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."
Especially in the Randstad it is difficult to buy a home without the help of family, especially in cities such as Haarlem, Amersfoort, Amsterdam and Utrecht.
InequalityFor starters without parents who own a home, the chances on the market are getting smaller. According to social geographer Wouter van Gent of the University of Amsterdam, this can increase inequality on the housing market. "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."
According to Hagedoorn, starters who have to do it without help can compete more difficultly with peers who receive help through a donation or loan. "That difference is often decisive in whether or not they can buy a house. And because of the wave of sales of rental properties, it has also become more difficult to find a rental property. That means that you start your life later."
Besides increasing inequality, financial help from parents also has another effect on the market, according to Van Gent. "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."
Yet according to Van Gent it is also very understandable that family members help their children. "We have a housing market crisis and it is very difficult for young people to find a home. You try to find a solution for that."
Were you able to buy your first home with the help of your parents, because they increased their mortgage? RTL Nieuws is looking for starters who were able to buy a home in this way. Do you want to share your experiences? Send an e-mail to RTL Nieuws.
- Open the RTL News app.
- Go to the menu.
- Tap 'Settings' and then tap 'Notifications' .
- Check the box next to 'Economy' .
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