Starters in the housing market can still receive a so-called start-up loan in some municipalities until 2017. This loan, actually a second mortgage, is provided by the municipality and is intended for starters who can not afford their home. A maximum of 20 percent of the purchase price can be financed with the starters loan.
If you are eligible for this loan, you do not have to pay interest and repayment for the first three years. Only after three years do you start paying off, so that you first have the opportunity to work on your career and start earning more. The costs of the first three years are a gift from the municipality: they do not have to be paid afterwards.
If after three years you do not earn enough to start paying off, for example because your salary has not risen as fast as expected, you pay what you can miss. This also only applies to the start-up loan, not for the first mortgage on your house! In addition, there are some additional costs involved in concluding the start-up loan: 1.5% closing costs, 1% bail commission and notary fees for the second mortgage (the start-up loan).
Many differences in start-up loans per municipality
Whether you qualify for a start-up loan depends on the municipality where you want to buy a house. They determine themselves whether and under what conditions they provide the loan. At this moment you can still turn to 256 of the 400 municipalities for a start-up loan. It is mainly the municipalities that want more residents who provide the loans. In Zeeland, for example, 85 percent of the municipalities provide the loan, while in the Randstad only Utrecht participates. Some municipalities work with certain postcode areas for which the loan may be applied for, or with a maximum amount that may cost your home.
In short, if you want to be eligible for the start-up loan, first inform your municipality whether they provide it and under what conditions. You still have a chance until 2017, after which the loan is probably canceled by all municipalities.