How much savings do you need to buy a house and what are the extra costs?
Home buyers increasingly have to put in their own money when they buy a house. In 2018, the maximum mortgage will only be 100 percent of the home value. You can therefore finance fewer and fewer costs in the mortgage. In addition, there are plans to reduce the maximum mortgage to 80 percent of the purchase price. Savings therefore play an increasingly important role in the purchase of a house. But how much money do you need to buy a house? Read all about saving money in the article below.
How much savings to buy for a house?
To calculate how much savings you need to buy a house, the guideline is that you have to pay 6 percent of the purchase price in extra costs. This percentage is slightly lower for expensive houses and slightly higher for cheap houses. On top of these costs are of course the costs that you spend on the house itself, such as furniture and furnishings. Without rebuilding this costs around 6,000 to 10,000 euros.
How much savings do you need to buy a house – What exactly do you pay?
The amount of savings that you need when buying a house is quite substantial. Where does all that money go?
- Appraisal costs, around 200 to 500 euros.
- Broker’s commission, approximately 1 to 1.5 percent of the purchase price.
- Architectural report if it is an old house, around 200 to 500 euros.
- Advice costs for the mortgage, 300 to 1,500 euros.
- Closing costs for the mortgage, 300 to 900 euros.
- Mortgage and deed of purchase, around 1,000 euros.
- Advice and closing costs for term life insurance, around 100 euros.
Tip! Compare the quotes from different notaries and brokers, so that you do not choose the most expensive. And if you have doubts between an independent mortgage adviser and a bank adviser, you can read in the article ‘ Independent mortgage advice’ which option is more economical.
How much savings to buy for a house – how do you save for this?
You therefore need a lot of savings to purchase a house. Most home buyers must therefore start saving a few years in advance. So make an estimate of the time you have to save for yourself.
It is best to open a separate savings account for this, so that you do not spend the money on other purposes. You deposit money at any time on a regular savings account, a deposit offers the possibility of temporarily setting aside an amount at a fixed interest rate.