How much of your own money do you need to buy a house?

Why you always need some of your own money

A mortgage covers the value of the property at most. You cannot finance the buyer's costs with it. Kosten koper are the additional costs the buyer pays on top of the purchase price. You pay those out of your own pocket.

For an average home, count on a few per cent of the purchase price in additional costs, on top of the price itself. Exactly how much that is depends on the property and your personal situation.

Items that usually fall under your own money:

• Transfer tax, the tax you pay on transfer (or the exemption if you qualify for it)
• Notary fees for the transfer deed and the mortgage deed
• A valuation report: an independent report on the value of the property, often needed for the mortgage
• A building survey: a technical check of the condition of the property
• Advice and arrangement fees for your mortgage

Bidding over asking: the difference with the valuation figure

How you bid counts too. If you bid above the asking price, which is often necessary in a tight market to get a home, the bank usually does not finance the full amount above the valuation figure. You bridge that difference with your own money.

How much that is differs per situation. It depends on the asking price, the level of your offer, the assessed value and your personal financing. That is why it is wise to know before bidding how much of your own money you can put in at most. Then you can set your upper limit with peace of mind.

What you pay us is fixed in advance

Our buying support costs €2,499, all-in, and you only pay if you actually buy the home. That is called no cure no pay: if you buy nothing, you pay nothing.

You do not have to set that amount aside alongside your own money. It is included in the settlement at the notary. So at least one item is exactly known in advance, while you map out the rest of your own funds with your mortgage adviser.

Do bear in mind that all-in refers to our agent's fee. Transfer tax, notary fees, a valuation report, a building survey and mortgage advice are paid separately to the parties concerned.

Buying with substantial savings, without a mortgage or from your parents

Not everyone finances a home entirely with a mortgage. Some buyers have savings, a gift or an inheritance and wonder whether buying a house without a mortgage is possible. It is, provided you can pay the full purchase amount including the buyer's costs yourself. Even then it remains wise to have the property properly assessed and to decide on a realistic offer. Without a lender looking over your shoulder, you are responsible for a sound valuation yourself.

Another situation is buying a home from your parents, for example taking over the family home at a privately agreed price. The same steps apply as with a regular purchase: a realistic valuation, a purchase agreement and a transfer at the notary. Within a family the pressure of competing bidders is usually absent, but that is exactly why an independent view of the price and conditions is valuable.

In all these cases it works the same way with us: your dedicated agent comes with you to the viewing, gives a realistic estimate of the value and guides you through the offer and the conditions. Because our fee is fixed, we earn nothing extra if the purchase price turns out higher.