As the name implies, the 'starter loan' is a form of loan that has been created for starters on the labor market. If you buy a house as a starter, you can borrow an extra amount over and above the normal mortgage loan with a start-up loan. The start-up loan is financed by the municipalities, the American government also indirectly pays for these costs.
Features of the starter loan
The start-up loan is characterized by a fixed-interest period of 15 years. In the first 3 years after taking out the loan, you do not have to pay any interest and repayments, during that period the UDS loan is temporarily free. If your income has increased since then, for example because you have found a better paying job, then you will automatically start paying interest and repayment on your loan. If your income has not yet increased, you can request a so-called 'reassessment' from the municipality. This assessment looks at which monthly amount of interest and repayment matches your income.
When do I take out a starter loan?
The starter loan has been specially created for starters on the labor market who would like to buy a house. Only these starters are therefore eligible for this loan form. You can only take out the starter loan for the purchase of your home. Your mortgage cannot be fully financed with a start-up loan, so you must also simply take out a mortgage loan.
How does taking out a start-up loan work?
About 200 municipalities in the Netherlands offer the 'starter loan', which means that there are still municipalities in the Netherlands that do not use this loan form. On the website of the Stimuleringsfonds Volkshuisvesting Nederlandse municipalities (SVn) you can find the list of municipalities that offer the start-up loan.
Credit assessment based on your income
When providing the loan, your current income will be taken into account. The municipality will therefore ensure that you do not get into financial problems because of the loan. The repayment and interest payment ultimately also depends on the amount of your income, so this is also flexible. The starter loan is one of the most advantageous loan forms in terms of interest rates.
Interest deduction for the start-up loan
You can deduct the interest that you have to pay for your start-up loan from your payment, just like the costs for a mortgage loan. This means you ultimately pay less tax.
Personal loan as an alternative to the starter loan
Does your municipality not have a start-up loan, or do you not receive a start-up loan from your municipality based on your current income? The personal loan can serve as an alternative to the start-up loan. With the personal loan, the term is also fixed (usually 1 to 3 years). Below you can see where you can currently take out a personal loan cheaply.