A bank is willing to grant a certain mortgage amount based on your income. If you are unable to purchase the house you want, you can borrow extra from third parties or arrange for a guarantee from, for example, your parents or other family members. You must consider that you must be able to pay the fixed costs every month. Owning your own home is not feasible for everyone. House prices are high, especially in the Randstad, due to a shortage of houses in this area. In some cases, the Government offers a solution by opening up a purchase subsidy, but you and the house must meet certain requirements, and these are also only limited schemes. The amount available for purchase subsidies in 2010 had already been used up before September. You cannot rely on government regulations. A better alternative is to buy a house with the help of, for example, your parents.
Take out an additional loan
When you want to borrow extra money to buy the house of your dreams, you cannot turn to a bank. A loan from the bank will be registered with the BKR in Tiel. The mortgage bank will require that you first repay the loan before they will grant you a mortgage. One option may be to take out a loan from private individuals (for example from parents). By putting the loan in writing, it is possible to designate this loan as a loan to acquire your own home. The interest payment is tax deductible for the payers. The parents (or other private individuals) have the advantage that they can lend money for which they can charge a higher fee compared to the savings interest. You must, however, thoroughly inquire in advance into the requirements that the loan and the agreement must meet.
Buying a house with a guarantee
With a guarantee, someone who does not own the house will be jointly and severally liable to fulfill the obligations under the mortgage. This person will be contacted if the homeowners are unable to pay the monthly costs themselves. The person who acts as guarantor will also be assessed by the bank. He or she will have to be financially able to pay the monthly costs in the event of an emergency, on top of his or her own monthly costs. Normally the guarantor will not be asked to contribute financially.
Buying a house with help
If the bank is not prepared to provide the necessary mortgage to buy the house, there are still options with an additional loan or with a guarantee. However, in many cases it is not wise to buy a house this way. The bank does not want to provide the money because they do not have sufficient confidence that you can repay the amount. You may have to abandon the purchase. In certain cases you can consider buying a house with an additional loan or with a guarantee. For example, if you expect a large increase in family income, you might consider buying a house with help. If you do not expect an improvement in your financial position, it is better to opt for a cheaper house.