Actually there are three “good” solutions to think of if you want to buy a house and do not have savings. That is not strange in itself, for example, if you have just invested in a study and started your first job. Or if you sold a house and paid a residual debt. In short, there are many reasons why you temporarily do not have sufficient savings.
The last option we can think of is to purchase a consumer loan in the form of a personal loan to finance the costs of the buyer. It may sound strange that it is possible to take out a separate credit on top of the 100% of the purchase price instead of a mortgage. Yet this is legally possible.
The alternative is sometimes not more economical for you. If you decide to rent instead of buying, you will also be confronted with high rental charges. In many cases, a home is cheaper. Sometimes choosing from two evils.
Buying a house with the help of parents
If your parents also find it a good idea that you want to buy a house and wish to help, these are the possibilities for them:
- They can guarantee your mortgage or a part of it. Aegon, Obvion and Rabobank each offer different solutions for this;
- You can donate the amount of the costs of the buyer ;
- If they have their own money, they can decide to provide you with part of the mortgage through a family mortgage ;
- Buying a home together and partly living in it, or not.
Maximize market value
The rule for most lenders is that you can obtain a maximum of 100% of this market value as a mortgage. This does not apply to all lenders, so that requires a good preparation.
An example. Suppose you have a property in mind with an asking price of € 270,000 and the valuer finds the market value of the property € 275,000. You have also hired a good buying agent who can get the purchase price at € 265,000. In that case you can get a mortgage of € 275,000. Suppose that the costs of the buyer at the purchase price of € 265,000 are approximately € 11,500, then you only need to contribute € 1,500 to your own money instead of € 11,500.
A mortgage adviser from our office can map out which banks and other lenders are based on this technique. Some lenders have in your acceptance conditions that the lowest of the two (purchase price or market value) is decisive for the maximum mortgage of 100%. It is then assumed that the purchase price is the same as the market value.
If you choose this route, you will need a certain minimum appraisal value. Leave this in your provisional purchase agreement so that you can still escape the purchase without having to pay a fine. So you will not run into problems if it turns out that the valuer has not achieved the minimum appraisal value. After all, this is a process that must be carried out independently, whereby the valuer must have his work validated by an external institute.
You can prevent this by having yourself, or through your purchasing agent, a reservation that you wish to contribute a maximum amount of your own money. Discuss this well together so that no misunderstandings arise about it.
Personal loan or revolving credit
It is possible to finance the required amount of additional costs due to buying the home with a personal loan. An important condition here is that your income is sufficient. Determining the maximum loan capacity for a personal loan or revolving credit is determined in a different way than providing a mortgage.
The burden of a personal loan again influences the determination of the maximum mortgage. It is therefore very precise to get everything right together in the right time sequence. For example, you should already have a commitment to the credit. The contract showing the commitment of the personal loan must also be tested by the acceptor of the lender.
In most cases, a mortgage advisor from our firm knows how to choose the right approach path and to help you with a responsible mortgage and loan.