ABN AMRO introduces SureStarter for greater certainty and speed

The introduction of SureStarter comes at a time when pressure on first-time buyers is clearly increasing. Data from HDN, the Dutch mortgage data network, shows that they are having to make higher offers: the average mortgage has increased in recent years from over € 330,000 to almost € 368,000. Decisions are also increasingly being made under intense time pressure and without the safeguards that used to be the norm. On average, first-time buyers now borrow 4.6 times their gross annual income and finance around 88% to 89% of the property value, leaving them limited capacity to absorb financial setbacks.

Less capacity, more pressure

This financial strain directly affects people’s behaviour. In practice, first-time buyers need to act quickly, as homes sell fast and bids often go up. Decisions about the large sums involved are increasingly being made under considerable time pressure, with less opportunity to carefully weigh all consequences.

Meanwhile, safeguards are disappearing from the buying process. Based on a survey among estate agents affiliated with NVM, the Dutch association of real estate agents, around 40% of buyers make an offer without a financing condition and up to 55% even buy without a structural survey. Safeguards that were once the norm are increasingly being abandoned to improve the chances of securing a home.

Uncertainty and missed opportunities

At the same time, it is notable that first-time buyers do not always make full use of the options open to them. Recent research by ABN AMRO shows that 61% of prospective first-time buyers have not yet talked to a bank or adviser, while 67% believe that buying a home is not feasible without financial assistance. In addition, 48% have not yet spoken to family about possible support.

This shows a clear mismatch: first-time buyers feel limited in their opportunities, but do not always make the most of the options available to them, for example because they lack an overview or are not sufficiently aware of what those options are.

SureStarter: speed and clarity at a decisive moment

ABN AMRO’s SureStarter aims to provide more clarity at the most critical moment in the purchasing process. The service combines upfront insight with faster completion of crucial steps, so that first-time buyers are better prepared when they make an offer.

After signing the purchase agreement, clients will have clarity about their mortgage application within three days, while the statutory cooling-off period is still in effect. This gives first-time buyers more space to make a well-considered decision, without giving up important safeguards.

Eric Jones, Director of Preferred Banking & Mortgage Advice at ABN AMRO: “We see that in today's housing market, first-time buyers are increasingly making decisions under pressure, with speed sometimes outweighing certainty. This leads people to take risks they would rather avoid. At the same time, there are often more options than first-time buyers think, but they do not always have the necessary insight available at the right time. SureStarter aims to provide clarity at that crucial moment, so that people can make more informed decisions.”

Balancing opportunity and certainty

ABN AMRO developed SureStarter to help create a better balance between opportunity and certainty, so that speed in the purchasing process does not come at the expense of careful decision-making as often. Last year, ABN AMRO also introduced the Family Mortgage to help first-time buyers. The Family Mortgage enables parents and other family members to provide financial support for the purchase of a home, alongside or in combination with a regular mortgage from the bank.