Surge in Mortgage Applications in Netherlands Q1 2024

Discover the latest data showing a 25% increase in mortgage applications in the Netherlands during the first quarter of 2024. Find out more!

The mortgage market in the Netherlands has seen a significant increase in activity in the first quarter of this year, with the number of mortgage applications rising by over 25 percent compared to the same period last year. According to the Hypotheken Data Netwerk (HDN), a cooperative association of mortgage, credit, and insurance companies, a total of 115,108 mortgage applications were registered in January, February, and March, up from 91,050 applications a year ago.

The surge in mortgage applications is not only evident in home purchases but also in transfers or additions. HDN noted a notable increase in applications for mortgages for newly built homes. The average mortgage amount also saw a 7 percent increase, reaching 364,640 euros. Home buyers are borrowing more in relation to their income, with the average loan-to-income ratio rising from 3.93 times to 4.02 times in the past year.

The decrease in mortgage applications seen in 2022, which was nearly 30 percent lower than in 2021, was primarily attributed to a drop in refinancings or additions. Many individuals had refinanced their mortgages early in 2022 to avoid further interest rate increases. However, the market seems to have rebounded strongly this year, indicating a renewed interest in the housing market.

The housing shortage in the Netherlands is becoming increasingly acute, with real estate agents reporting a significant decrease in the number of homes available for sale. This trend, coupled with rising home prices, underscores the challenges faced by both buyers and sellers in the current market.

The significant increase in mortgage applications in the Netherlands in the first quarter of this year reflects a growing confidence in the housing market and signals a positive outlook for the real estate sector. As the market continues to evolve, it will be crucial for stakeholders to closely monitor trends and developments to make informed decisions.