Family mortgage to buy house for 2 families

Family mortgage to buy house for 2 families

Family mortgage to buy house for 2 families in The Netherlands? Take out family mortgage to buy house for 2 families? With the challenging housing market, people are looking for creative ways to still be able to buy a home. A growing number of first-time buyers are considering buying a house together with another family. This can be done with a family mortgage. These may be friends or family members. In this article, we explain how this works and what to look out for.

What is a family mortgage?

A family mortgage can be taken out by two, three or four people. This allows, for example, two families to take out one mortgage together to buy a house. Because all incomes are taken into account, the maximum loan amount can be significantly higher.

A family mortgage makes it possible for befriended couples to buy together, for example, a piece of land with one house on it. This is known as self-building. Parents can also buy a house together with their child and partner. In fact, even four strangers can take out a mortgage together.


Conditions for a family mortgage

  • Maximum of four people: A family mortgage can be taken out by two, three or four people. These do not necessarily have to be family members.
  • One home: The mortgage is used to purchase one home.
  • Registration at address: All those involved must be registered at the address of the property.
  • Joint responsibility: All mortgage holders are jointly 100 per cent responsible for the mortgage, this is called joint and several liability.
  • Zoning: Also suitable for uses other than exclusively a house with residential zoning.
  • Multiple nationality: Also possible for partners without the Dutch nationality.
  • Income in non-euros: Income other than euros is possible.


Points of interest around a family mortgage

  • Limited providers: Only a few banks offer a family mortgage, which can result in less favourable terms such as higher interest rates and less flexibility.
  • Mortgage interest deduction: For mortgage interest deduction, all owners must own at least 50% of the property.
  • Departure of an owner: If an owner leaves, the mortgage must be paid off, the property sold, or the mortgage transferred into the name of those left behind.


Taking out a family mortgage

A family mortgage basically works the same as a regular mortgage. You make an application, the incomes are checked and you provide the necessary documents. Upon approval, you go to the notary together to finalise the purchase and mortgage.


Alternative options

If a family mortgage is not suitable, there are other options for financing a home:

  • Family mortgage: Borrowing money from a family member, who takes the position of the bank without taking ownership of the property.
  • Generation mortgage: Parents can take out part of the mortgage to cover the remaining amount.
  • Donation: Parents can make a tax-free gift to their (grand)children.
  • Surplus value withdrawal: Parents can use the excess value of their home by increasing the mortgage and donate or lend this amount.
  • Buy a house and rent it out: Parents or friends can buy a second house and rent it out.


Insurances around family mortgage

In most cases, the families we help to take out a family mortgage also take out death risk insurance. This covers part of the financial risk in case of an unexpected death. Often the insurance is taken out per family.

Another point of attention is insuring the joint house and contents. In fact, there are no standard solutions for this. Taking out an insurance package alongside a family mortgage is tailor-made, and we can also help you put together an insurance quote for several families.


Tell us your story!

At Cournot Advisers, we have a lot of experience with family mortgages and other constructions to enable multi-family home purchases. Would you like to discuss your options together? Then get in touch for a no-obligation meeting! This can be done online or in person. We have extensive – ready – knowledge about mortgages for families who want to fulfil their dream of living together.

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