The mortgage market is running at full speed! In the first quarter of this year, no less than 23.4% more mortgage applications were submitted than in the same period last year. Are you planning to buy a home or transfer your mortgage? Then this is important information for you.
Record number of mortgage applications
HDN, the organization that registers digital mortgage applications in the Netherlands, recorded no less than 142,076 mortgage applications in the first quarter of 2025. March was even the busiest month since April 2022, with 53,392 applications.
What is striking is that this increase took place despite a turnaround in interest rate developments. After declines in 2024, lenders increased their interest rates again at the beginning and end of the first quarter. Many mortgage advisors and consumers acted quickly to still be able to benefit from the lower rates, which led to clear peaks in week 3 and week 10 of the quarter.
Who applies for a mortgage the most?
Renovators and starters in the lead
If we look at the different customer profiles, we see that 'Renovators' formed the largest group in the first quarter. With 28,081 applications, they accounted for more than 20% of the total. They were followed by:
- 'Starters in the high segment' (15,752 applications)
- 'Upstreamers' (15,734 applications)
Especially starters in the high segment grew considerably, with an increase of 34.4% compared to last year. Younger starters also participated well with a growth of 15.9%.
Remortgage market is picking up again
Also interesting: the remortgage market is gaining strength again. Advisors submitted 11,307 applications for refinancing, an increase of no less than 45.5% compared to the first quarter of 2024. Although this is still far below the record of February 2022 (more than 21,000 applications), the increase shows that consumers are once again showing interest in refinancing.
Major cities and expensive provinces in demand
In the four major cities (Amsterdam, Rotterdam, The Hague and Utrecht), the buyer market picked up above average, with a growth of more than 35%. This increase seems to be strongly related to the selling off of rental properties.
The number of purchase applications also grew significantly in the three most expensive provinces:
- Utrecht (+24.3%)
- Noord-Holland (+26.6%)
- Noord-Brabant (+21.5%)
In Overijssel, growth remained relatively limited at +6%.
Higher house prices and mortgage amounts
The average house value reached a record €508,100 in the first quarter, an increase of 9.4% compared to last year. For purchase purposes, consumers applied for an average mortgage of €370,700, which is 7% more than last year. In the non-buyer market (refinancing and increases), the average mortgage amount was €120,700, an increase of 9.8%.
Young people dominate the market
Figures from De Hypotheker show that home buyers and owners up to the age of 35 contributed to the growth, with an increase of 30%, followed by people aged 55 and over with an increase of 21%.
First-time buyers continue to dominate the housing market. They submitted 56% of all mortgage applications for home purchases. Compared to the same period last year, the number of applications from first-time buyers grew by 23%. Most starters are younger than 35 years old (80%), but their number is also increasing among older age groups. In the past three months, 37% of home buyers between 35 and 45 years old bought their first home.
What does this mean for you?
Are you planning to buy a home?
Are you considering buying a house? Then it is good to know that the market is currently very active, especially in the big cities. The sale of rental properties by investors offers opportunities, especially for starters. However, it is important to take into account the rising house prices and interest rates.
Do you want to transfer or increase your mortgage?
If you are considering transferring or increasing your mortgage, for example for a renovation or sustainability, then you are certainly not the only one. Many homeowners are currently choosing this. Due to the fluctuations in the interest rate, it can be smart to act quickly if you see a favorable rate.
Are you a starter?
As a starter, you are in good company! You currently form the largest group on the housing market. With the right guidance and a good insight into your financial possibilities, you can still find a suitable home, despite the rising prices.
Personal advice at M&D Real Estate
At M&D Real Estate, we closely monitor developments on the mortgage market. We are happy to help you make the right choices in this dynamic market, whether you are a starter, a mover or are considering making your home more sustainable.
Do you want to know what the current market developments mean for your specific situation? Or do you have plans to make your home more sustainable, in which our partner Labelbewust can help? Contact us for a personal consultation. https://www.labelbewust.nl can help? Contact us for a personal consultation.
We are happy to think along with you about your housing needs and possibilities in this active market!