Best Mortgages for First-Time Buyers in Europe 2026
Mortgages for your first home purchase.
Updated 2026-03-22
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Updated Apr 2026Some links are affiliate. Ratings not affected.
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First time buying in Europe? Country-by-country mortgage guide
100%
Max LTV in NL
~€510k
Tax exemption limit
~€435k
NHG limit (2025)
3.5-4.5%
Typical 10yr fixed rate
What are mortgages for first-time buyers?
Buying your first home is one of the biggest financial decisions you will make. As a first-time buyer (starter) in Europe, you face challenges that experienced buyers do not: building up savings for costs, understanding mortgage products for the first time, navigating a competitive market, and managing the anxiety of the largest purchase of your life.
In the Netherlands, you can borrow up to 100% of the property's appraised value (taxatiewaarde), which is unique in Europe. Most other EU countries require a 10-20% down payment. However, 100% financing means you still need cash for additional costs (kosten koper, typically 4-6% of the purchase price) including transfer tax, notary fees, advisor fees, and bank guarantee.
The two main mortgage types for Dutch first-time buyers are:
Annuity mortgage (annuiteitenhypotheek): Fixed monthly payments that start with mostly interest and gradually shift to mostly principal repayment. This is the most common choice and the only type eligible for full interest tax deduction (hypotheekrenteaftrek) since 2013. Monthly payments are predictable and typically affordable from day one.
Linear mortgage (lineaire hypotheek): Fixed principal repayment each month plus decreasing interest. Monthly payments start higher but decrease over time as the outstanding balance drops. You pay less total interest over the mortgage term but need a higher income to qualify initially.
Fixed-rate periods in the Netherlands range from 1 to 30 years. Most first-time buyers choose 10 or 20-year fixed rates, balancing payment certainty with rate flexibility. In 2025, 10-year fixed rates are approximately 3.5-4.5% depending on the lender and LTV ratio.
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How it works in Europe
1. Calculate your maximum borrowing capacity
Your maximum mortgage in the Netherlands is determined by your gross annual income (toetsinkomen), existing debts (BKR registrations including student loans, car loans, credit card limits), and the interest rate used for the affordability test. Use online tools like Hypotheek Berekenen or Berekenhet.nl for an initial estimate, but a mortgage advisor will provide the definitive calculation. If you have a partner, combined incomes increase your borrowing capacity significantly.
2. Save for additional costs (kosten koper)
While you can finance 100% of the property value, you need cash for: overdrachtsbelasting (transfer tax, 0% for buyers under 35 up to approximately 510,000 EUR in 2025, 2% otherwise), notary fees (approximately 1,000-2,000 EUR), mortgage advisor fees (1,500-3,500 EUR), appraisal report (taxatierapport, approximately 500-700 EUR), bank guarantee or deposit (10% of purchase price, returned at completion), and building inspection if applicable (approximately 300-500 EUR). Budget approximately 4-6% of the purchase price for total additional costs.
3. Get a mortgage pre-approval
Before house hunting, get a pre-approval (hypotheekverklaring or voorlopig advies) from a mortgage advisor. This tells you your maximum budget and shows sellers you are a serious buyer. In the competitive Dutch market, sellers prefer buyers who can demonstrate financing is arranged. A pre-approval is not binding but gives you and sellers confidence.
4. Check NHG eligibility
Nationale Hypotheek Garantie (NHG) is a government-backed guarantee that protects you from residual debt if you must sell at a loss due to circumstances beyond your control (divorce, disability, involuntary unemployment). NHG-eligible mortgages (purchase price up to approximately 435,000 EUR in 2025) receive a lower interest rate discount (typically 0.2-0.5%) from lenders. The one-time NHG fee is 0.6% of the mortgage amount.
5. Make an offer and complete the purchase
In the Dutch market, bidding above the asking price (overbieden) is common in popular areas. Your mortgage advisor can help you determine a competitive bid that stays within your budget. Once your offer is accepted (mondeling akkoord), the purchase agreement (koopovereenkomst) is signed. You have a 3-day cooling-off period (bedenktijd). Include a financing clause (financieringsvoorbehoud) allowing you to withdraw if mortgage financing falls through. Completion at the notary typically happens 4-8 weeks after the purchase agreement.
Advantages
- 100% LTV financing available in the Netherlands: you can borrow the full property value without a deposit
- Transfer tax exemption (0% overdrachtsbelasting) for buyers under 35 on properties up to ~510,000 EUR
- NHG guarantee provides a safety net and lower interest rates for mortgages up to ~435,000 EUR
- Hypotheekrenteaftrek (mortgage interest deduction) reduces effective monthly costs by 37-49% of interest paid
- Fixed-rate periods of up to 30 years provide complete payment certainty for the entire mortgage term
Disadvantages
- Additional costs (kosten koper) of 4-6% still require cash savings even with 100% financing
- Competitive market: overbidding (overbieden) is common, meaning you may pay above appraised value with no mortgage coverage for the excess
- Student loan debt (studieschuld) reduces borrowing capacity even if payments are deferred or income-contingent
- Property market risk: buying at 100% LTV means any price decline immediately puts you "underwater" (owing more than the property is worth)
How to choose
How much can you borrow?
In the Netherlands, the maximum mortgage is typically 100% of the home's value (based on the taxatie-waarde). Your income determines the absolute maximum. As a rule of thumb, you can borrow roughly 4.5x your gross annual income, but this depends on interest rates, other debts, and the type of employment contract.
Government schemes
The Netherlands offers the NHG (Nationale Hypotheek Garantie) for homes up to ~€435,000. NHG typically gets you a 0.3-0.5% lower interest rate and protects you if you cannot pay. First-time buyers may also benefit from transfer tax exemptions for buyers under 35 on homes up to a certain value.
Fixed vs variable rate
Dutch mortgages commonly offer fixed periods of 5, 10, 15, 20, or 30 years. Longer fixed periods give you certainty but may have slightly higher rates. In the current rate environment, most advisors recommend fixing for at least 10 years. Variable rates can be cheaper short-term but carry the risk of future increases.
You can get a 100% mortgage in the Netherlands (no deposit required on the home price). However, you still need cash for additional costs (kosten koper): typically 4-6% of the purchase price covering transfer tax, notary fees, advisor fees, and valuation. On a €350,000 home, expect €14,000-21,000 in additional costs.
NHG (Nationale Hypotheek Garantie) is a government-backed mortgage guarantee for homes up to approximately €435,000 (2026). Benefits: lower interest rate (typically 0.3-0.5% less), protection if you sell at a loss due to circumstances beyond your control. The one-time cost is 0.6% of the mortgage amount. For eligible buyers, it is almost always worth it.
Beyond your mortgage payment, budget for: property tax (OZB, €200-600/year), home insurance (€100-200/year), maintenance reserve (1-2% of home value annually), VvE fees if buying an apartment (€50-200/month), and utilities. Total additional costs are typically €300-600/month on top of your mortgage.
Several European countries offer first-time buyer support. The Netherlands has the "starterslening" (starter loan) and a transfer tax exemption for buyers under 35. France offers the "pret a taux zero" (zero-interest loan). The UK has shared ownership and lifetime ISA bonuses. Germany has the "Baukindergeld" family building grant. Check your country's specific schemes, as they change frequently.
Deposit requirements vary by country. In the Netherlands, 100% mortgages are available (no deposit needed, but you must cover transfer costs). In Germany and France, 10% to 20% is typical. The UK requires at least 5% to 10%. In Scandinavia, 15% is the norm. A larger deposit generally secures a better interest rate, so saving more upfront can significantly reduce your total borrowing cost.
Yes, but conditions vary. Most European banks require permanent residency or a long-term work contract. Some countries (like the Netherlands) have mortgage products specifically designed for expat buyers, while others (like France) may require a larger deposit from non-residents. Having a local employment contract and credit history significantly improves your chances. Mortgage advisors specialising in expat clients can help navigate the process.
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