First-time home buyers in the Netherlands need an average of €42,000 from their own funds to secure a mortgage, according to the latest figures.

While mortgage rates are falling and more people are taking out loans, the amount required as a deposit continues to rise, mortgage data specialist Hypotheken Data Netwerk (HDN) reported.

HDN recorded over 116,000 new mortgage contracts in the third quarter of 2024, reflecting a 22.5% increase from the previous year. Of these, 75,000 were taken out by home buyers, while the rest were used for extensions, renovations, energy efficiency upgrades, or refinancing.

Existing homeowners moving up the property ladder needed an average of €35,000 as a deposit to secure a mortgage.

In September, market lending rates fell below 4% for the first time in five years, yet the average amount borrowed was 7% higher than a year ago, reflecting rising home prices. The average mortgage in the third quarter of 2024 was €361,785.