7 key benefits first-time buyers can take advantage of in 2026

Everybody talks about the steps first-time homebuyers need to take, but almost no one explains the real benefits hidden within the Dutch mortgage system.

The Netherlands offers several financial advantages, tax benefits, and market opportunities that many starters are unaware of—yet these perks can significantly strengthen your position as a first-time buyer.

This blog is written by Bart, our mortgage advisor at OHAO. This blog article provides an overview of the key benefits that first-time homebuyers can access when purchasing a home.

Mortgage interest is tax-deductible

One of the biggest advantages of owning a home in the Netherlands is the hypotheekrenteaftrek (mortgage interest deduction).

The interest you pay on a qualifying mortgage can be deducted from your taxable income, reducing the annual tax bill. For many first-time buyers, this tax benefit can significantly reduce monthly mortgage payments—sometimes making them lower than current market rents.

For example

Imagine you are a first-time buyer, and you manage to secure a €350,000 mortgage at 3.5% interest. That means your annual interest bill comes to €12,250. Now, here’s where the Dutch system really starts to work in your favor: if you are in the 37% tax bracket, you can deduct €4,532.50 from your taxes each year.

Therefore, your actual net yearly interest cost is reduced to €7,717.50. Break that down monthly, and you are paying about €643 in net interest instead of the full €1,020.

That’s a difference of €378 every month, which allows you to set that money aside or use it for bills. You can claim your tax benefit on a monthly/yearly basis.

Fixed monthly payments

Another major benefit of the Dutch mortgage system is that it allows you to lock in your interest rate for 10, 20, or even 30 years.

This means predictable monthly payments, even if market rates rise. Not all countries offer a fixed interest model—in some other EU countries, only variable mortgage interest rates are common.

For example

A €400,000 mortgage at 4.2% fixed for 30 years gives a stable monthly payment of about €1,950 per month (annuity). Even if interest rates rise to 6% in the future, your monthly payment stays the same—saving you around €300–€400 per month compared to new buyers in a rising-rate environment.

You build equity instead of giving money away

Every monthly payment you make builds up your equity—that’s your personal stake in your home. Rather than handing over rent to a landlord, you’re investing in something that’s yours.

As time goes by, your mortgage balance shrinks and your home’s value could go up. It might feel tough to break into the housing market, but once you’re in, you’re in. And when you eventually sell, you will have a lump sum of equity that you can use to it to buy a second property.

You can profit from rising house prices

In the last year, the Dutch housing prices and values have been rising steadily. For example, the average purchase price in the first quarter of 2025 reached €470,000, compared to €432,000 in the same period of 2024.

This indicates that first-time buyers also benefit from long-term price appreciation, especially in cities with strong demand, such as Amsterdam, Utrecht, Haarlem, and Eindhoven, among others. Even a modest increase can result in a significant profit after the sale.

Transfer tax benefits for first-time buyers in 2026

In 2026, first-time buyers aged 18–34 can benefit from a one-time exemption from the 2% transfer tax when purchasing a home below the new government-set threshold of €555,000.

This exemption can save buyers thousands of euros upfront and significantly lowers the financial barrier to entering the Dutch housing market. Many buyers only become aware of this advantage at the notary stage, even though it is one of the most valuable benefits available as a starter.

Deductible purchase costs reduce your tax burden

Various one-off costs involved in buying a home are tax-deductible if the mortgage is used for your primary residence. This means that first-time homebuyers in the Netherlands can save on certain fees when purchasing a property. These include:

• Mortgage advice fees

• Valuation report

• Mortgage deed ( notary fees)

• NHG application fees

• Mortgage offer extension ( if necessary)

These deductions help offset your initial purchase costs—another advantage few first-time buyers know about.

No capital gains tax when selling your home

Unlike in many countries, the Netherlands does not charge capital gains tax on the profit from selling your primary residence. If your home increases in value, the profit is yours to keep—tax free. This is a major long-term advantage and one of the most hidden benefits of homeownership in the Netherlands.

Let’s say you buy a home for €400,000 and, seven years down the line, you sell it for €480,000. That’s €80,000 in profit—yours to keep and spend as you wish.

Other mortgage borrowing options and government support

• First-time buyers can borrow up to 100% of the property value.

• Single buyers may qualify for an additional borrowing capacity. For more information, please contact our mortgage advisors.

• Buyers of energy-efficient homes (A-label or higher) can borrow extra, thanks to lower expected energy costs.

• Programs such as the NHG (National Mortgage Guarantee) offer lower interest rates and financial protection in the event of unemployment, divorce, or illness.