How much personal funds do you need to buy a house?

Buying your own home is something you usually do only once in your life.

It’s an exciting period with a lot to consider. But it’s also a very fun period where you figure out in which region you would like to live, you start looking at houses on the internet and later “live,” and eventually, you become the proud owner of your own dream home!

Besides the fun part, there are also a number of important matters you need to take into account.

One of these is that there are quite a few costs associated with purchasing a house.

Since January 1, 2018, you can no longer finance these costs with your mortgage. Therefore, you need to contribute personal funds to secure a mortgage.

You should think about an amount of approximately four to six percent of the purchase price. Additionally, you can choose to contribute more personal equity, thereby reducing the mortgage and thus the monthly expenses.

Tip: Calculate your maximum mortgage

What do we actually mean by personal funds?

Personal funds refer to the money you have available to invest in your new home. Personal funds or personal resources can include: the money in your checking account, money in your savings account, or for example, the surplus value from the sale of a previous home.

Finally, personal funds can also come from a gift, for example from your parents, or from an inheritance.

Is it still possible to buy a house without savings?

Unfortunately, the answer is no. As previously mentioned, since January 1, 2018, it is no longer possible to secure a mortgage without personal funds.

Since then, only the purchase price and nothing more can be financed with a mortgage.

Securing a mortgage without personal resources is therefore no longer possible, as all additional costs must be paid by yourself.

Do you not have enough money to cover these costs yourself? Then you could possibly give your parents a hopeful look for a (tax-free) gift.

What costs are involved in buying a house?

There are various costs you can expect when purchasing a house.

Firstly, the costs incurred to become the owner of a property are also referred to as buyer’s costs (abbreviated in Dutch as k.k.). The buyer’s costs consist of transfer tax and notary fees for the deed of conveyance and must therefore be paid from your own funds.

The notary fees can vary significantly but typically average around € 1.200,-

Always request multiple quotes and see which notary gives you a good feeling.

Furthermore, we have the costs of transfer tax. The current transfer tax rate is two percent of the purchase price for existing homes. The amount is determined by the property value at the time of purchase. This means that the transfer tax is calculated based on the purchase price.

If you buy a newly built house, you do not pay transfer tax, and you typically purchase it “Vrij op naam” (V.O.N.), which means that the costs associated with the transfer are included in the purchase price. In that case, you don’t have to pay buyer’s costs (notary fees and transfer tax).

However, you do pay construction interest in such cases. That is a fee you pay to the builder of your newly constructed home for their incurred expenses. The amount of construction interest depends on your builder.

Good to know! Buyers up to 35 years old purchasing their (first) house for up to € 510,000 do not have to pay transfer tax (2024).

Are there any other costs you need to consider?

In addition to the buyer’s costs, there are also other expenses that you have to cover with your own funds.

Be mindful! Please note that because these costs can vary greatly, we cannot provide specific amounts, except for a guideline of 4-6% of the purchase price.

Request quotes from multiple sources and carefully compare everything to arrive at a specific total amount. That way, you won’t suddenly be faced with surprises afterward. We’ll summarize everything for you below.

Costs of the real estate agent

If you use a buying agent to purchase your home, you will incur fees for their assistance in the home-buying process. These costs are also referred to as real estate agent commission.

Do you want to know exactly how much a buying agent will cost you? Then do some research, as there are variations in the fees charged by real estate agents. Some charge a percentage of the purchase price, while others have a fixed fee.

In any case, have a conversation with several agents, inquire about their terms and costs, and then see if one of them suits you and your budget!

Appraisal costs

To secure your mortgage for an existing home, a valuation report is usually mandatory. The costs for a valuation report are not fixed.

The prices vary from one appraisal agency and real estate agent to another and can sometimes be negotiable.

Building inspection

If you intend to buy an older house, it is advisable to have a building inspection conducted to assess the quality of the property. Hidden defects will be revealed, and you will typically receive a cost estimate for potential repair work.

A building inspection costs around a few hundred euros.

Costs of the National Mortgage Guarantee (Nationale Hypotheek Garantie, NHG)

If you want to buy a house with the National Mortgage Guarantee (Nationale Hypotheek Garantie, NHG), you will pay a one-time fee of 0.6 percent of the purchase price (in 2024). The National Mortgage Guarantee (Nationale Hypotheek Garantie, NHG) is a guarantee for mortgages up to €435.000,- (in 2024).

When you take out an NHG mortgage, you are borrowing responsibly and affordably. With mortgage guarantee, as a homeowner, you have less risk and can benefit from an interest rate discount.

Advisory and intermediary costs

Finally, you will need a good mortgage advisor to assist you in securing your mortgage and arranging the associated insurance policies.

A good mortgage advisor goes the extra mile for the client and always thinks comprehensively about your needs.

Nobel Mortgages

Do you want to know if you qualify for extra borrowing capacity due to your energy label? Whether it’s to make your home more sustainable or to finish it off even more beautifully with a stunning dormer, for example. We’ll find out for you!

We at Nobel Mortgages are happy to help you by providing high-quality financial advice and think with you on all fronts. We always go the extra mile for our (potential) clients, truly analyze all possibilities and, when necessary, always think outside the box.

In this way, we ensure that we can achieve what others cannot. In other words, we are fully dedicated to helping you obtain the best mortgage or loan that suits you perfectly and, of course, aligns completely with your situation and preferences.

Do you also want an advisor who looks outside the box and really analyzes all the possibilities for you? Then contact our experienced and enthusiastic team soon.

We are available to you 24 hours a day with the utmost commitment and sincere attention. An e-mail is a snap to info@nobelhypotheken.nl or call or app to 06-54770122.