Starter Loan

For many starters in the housing market (first-time buyers), the purchase of an owner-occupied home is not or hardly attainable. In order to promote home ownership, the municipality of Kerkrade has decided to provide starter loans.

What is the start-up loan?

A starter loan is an additional loan on top of a regular mortgage loan to enable the purchase of a first home.

The word starter loan in white letters on a pink background. To the left of the letters is a line drawing of a cottage

The starter loan consists of 2 parts:

  1. A loan portion that is repaid on an annuity basis: the starter loan
  2. A loan part that increases in amount: the combination account

The loan has a term of 30 years. For both parts, you have no monthly charges for the first 3 years; the repayment of the starter loan is "paid" for the first three years with the combination loan. Starting in the fourth year, you pay interest and repayment on both parts of the loan, thus paying back the loan in 27 years.

If after these three years your income is not high enough to cover the future monthly costs, you can apply for a retest with SVn. Your income will be reassessed. The outcome may be that for three years (= years 3 to 6) you will have to repay less or not at all.

Interim or partial repayment of both parts of the loan is possible and penalty-free.

Loan amount

You can apply for a starter loan for a home with a maximum purchase price of € 245,000. The maximum starter's loan you can receive is 20% of the purchase price, which is €49,000.

Requirements

You qualify for a starter loan if you meet the following Requirements:

  • You want to buy a home for the first time (you are a starter);
  • The property you want to buy is located in Kerkrade or Eygelshoven;
  • You cannot get enough mortgage to buy a house (according to National Mortgage Guarantee standards).
  • The purchase price of an existing home may not exceed € 245,000 (excluding buyer's costs), including any improvement costs
  • The contract price of a newly built house may not exceed € 245,000 (excluding buyer's costs), including any additional work;
  • The applicant(s) must be natural persons residing in the Netherlands who have no previous ownership of a home at the time of application.
  • You must occupy the property to be purchased yourself
  • The starter loan must be provided with National Mortgage Guarantee (NHG) and must be executed at the notary at the same time as the mortgage (also with NHG).

These Requirements were determined in consultation with the province and Stimuleringsfonds Volkshuisvesting Nederland (SVn).

You can also read about these in the Regulation Starters Loan Municipality of Kerkrade 

Procedure

You cannot apply for a starter loan until your offer on a home is accepted and there is a signed purchase agreement. Or if the purchase agreement is signed within a week.   

The procedure for obtaining a start-up loan consists of a number of steps.

  1. First, it is determined whether you belong to the target group. For this purpose, you must request a form (the target group verification form) from the municipality, fill it out and submit it to the municipality together with the signed purchase agreement.
    To request the form, please send an e-mail to gemeentehuis@kerkrade.nl Please include in your e-mail your name, telephone number, current address and the address of the property to be purchased. You can also call phone number 14 045. 
  2. If you are found to be within the target group, you will receive the Allocation Letter from the municipality.
  3. With this Allocation Letter you can apply for the Starter Loan digitally through the website of the Stimuleringsfonds Volkshuisvesting Nederland (SVn).

Starter loans are provided as long as there is budget. Applications are considered in order of receipt.

Learn more

You can find more information about the Starters Loan on the SVn website

If you want more information about the starters loan in Kerkrade , call the municipality at 14 045.