The number of starter home loans issued in the Netherlands has significantly increased in the first half of 2024, with over 8% of first-time homebuyers utilizing them – a rise from 6.4% in 2023 and 3.2% in 2021. These loans, offered by municipalities and administered by SVn, bridge the gap between maximum borrowing capacity and property prices. For example, a starter earning a modest income can secure a mortgage of around €240,000 and supplement it with a €50,000 starter loan. This enables the purchase of a €290,000 home, with a three-year period of zero-interest, repayment-free terms. Experts attribute the increase to both more municipalities offering the loans and, crucially, rising house prices. The loans aim to help first-time buyers “participate” in the market rather than necessarily outbid others, particularly in areas like Lelystad and Texel where they are most popular.