Did you build up a student loan debt at DUO during your studies, and do you really want to buy a house now? Or have you built up a debt in another way? Good news: it is still possible to take out a mortgage with a (student loan) debt.
How much can I borrow with a (student loan) debt?
To find out, the mortgage provider takes into account the amount that you repay each month and the interest on your debt. In the case of a student loan, it is also checked as to whether your loan falls under the old or the new loan system. If you fall under the old system, your study debt counts for 0.75% in your monthly charges’ assessment. In the new system this percentage is 0.45%. Based on this, the lender calculates how much you can pay per month and thus how much you can borrow in total. This can make a difference in tens of thousands of euros in your total mortgage amount. Freek is happy to help you calculate your maximum mortgage.
Do I have to report my (student loan) debt?
Do you have a debt between € 500 and € 175,000 with a minimum duration of 3 months? Then your debt is registered with the BKR (Credit Registration Office). This means that lenders are aware of your debt. You do not have to separately report your debt.
A student loan at DUO is not registered with the BKR and is therefore not known to the lender. Do you have a student loan debt? Then it is mandatory to report this. We therefore advise you to be honest about this, because then you are sure that you are responsibly taking out a loan and that later you can actually pay your mortgage every month.
Is it smart to first pay off my (student loan) debt?
Because the interest rate on your student loan is low, it may not seem attractive to pay it off all at once. If you want to buy a house, it can still be wise to do so. Have you reported your student loan debt to your mortgage provider? If so, then they look at the total amount of your student loan debt, even if you have already repaid 90%, for example. By repaying the last part in one go, you free up a lot of mortgage space.
You can also choose to pay off your debt through a mortgage. You then increase your existing mortgage or take out a new mortgage. Because your mortgage increases, money is released to repay your existing debts. As a result, you pay a lower amount per month, the mortgage interest currently being lower than the loan interest.