Buying a house together: what should you arrange carefully?
Buying a house together is a wonderful step. It's also a financial and legal commitment. By making good agreements in advance, you avoid uncertainty later. In this article we outline the main points of attention for couples.
Your combined borrowing capacity
If you buy together, both partners' incomes count towards determining the maximum mortgage. That often means you can borrow more than alone. Do factor in your future plans, such as working less or expanding your family. Via our mortgage advice different scenarios are calculated. Also read how much mortgage you can get.
Who is the owner?
At the notary's office you record who owns the home and in what proportion. Usually that's fifty-fifty, but it doesn't have to be. If one of you brings in more own funds, it may be wise to record a different split or a debt agreement.
Living together without a contract
If you live together without a cohabitation agreement, you have little arranged by law. In the event of death your partner doesn't automatically inherit, and in a breakup it's not always clear who's entitled to what. A cohabitation agreement at the notary's office offers a lot of clarity.
Married or registered partnership
If you're married or in a registered partnership, the division of assets depends on your prenuptial or partnership agreements. Get informed by the notary about what this means for the home.
Insurance
Also consider term life insurance. If one of you dies, the surviving partner often needs to be able to pay the mortgage alone. Insurance can cover that risk. Also discuss what happens in the event of disability or unemployment.
Aligning your wishes
Practically speaking, it's important that your housing wishes align. Make a list of requirements and wishes together. Where do you want to live? How many bedrooms do you need? Browse the property listings together and set up a free search profile, so you both stay informed.
Viewing and bidding together
Attend viewings together as much as possible. Agree in advance on the maximum amount you want to bid together. A buying agent helps keep emotions and figures in balance. Our tips on bidding smartly can help you further.
At the notary's office
At the notary's office you both sign the deed of transfer and the mortgage deed. Also ask right away about a cohabitation agreement or will if that hasn't been arranged yet. Read more in what happens at the notary's office.
Well-advised together
Want to buy a home together in Amsterdam, Utrecht, Rotterdam or Arnhem? Get in touch for an introduction with one of our buying agents.
Unequal contributions of own funds
It often happens that one partner brings in more own funds, for example from a previous home or savings. Without agreements, this can lead to discussion in the event of a separation. So record how the contribution will be settled. This can be done in a cohabitation agreement, in prenuptial agreements, or in a separate agreement at the notary's office.
What if the relationship ends?
No one buys a house intending to split up, but it's wise to think in advance about what happens then. Can one of you take over the home? Will the home be sold? Clear agreements prevent conflicts and give both partners certainty.