Opposite idea: young people re-enter the housing market
The rejuvenation of the mortgage market goes against the prevailing idea that buying one's own home is no longer feasible for young people. However, it is important to note that the overall market shrank significantly last year due to higher interest rates, resulting in BNP Paribas Fortis selling 30% fewer mortgages.
Financial support from parents plays a role, as do longer maturities introduced by the bank to keep monthly repayments manageable. About one in 100 mortgages now has a 30-year term, which may provide a solution for young first-time buyers against the effects of high interest rates.
Koen De Leus, chief economist at BNP Paribas Fortis, stresses that young people cannot, or do not want to, wait. Postponing the housing project is more difficult for them than for older generations. In addition, the rise in rental prices makes the alternative less attractive, as fixed-rate mortgage payments are immutable.
Millennials' preferences: less new construction, longer runtime of loans
Millennials are less likely to choose new construction, with only 12% of their loans earmarked for construction projects. In comparison, 22% of over-55s opt for new construction. The high cost of building materials has made building less attractive in general. More and more young couples prefer to commit to renovation where they can take advantage of the 6% VAT system instead of 21%.
Despite the changes, the average age of property buyers remains constant, with 38 being the average over the past year. However, renovation loans have seen a rejuvenation, with the average age dropping from 43 to 39 in 10 years.
