Hoorn College Raad Consults on Future of Starters Loan

Hoorn College Seeks Council Input on Starters Loan

Background

The Hoorn College is seeking the council's insight on the future of the starters loan, designed to support newcomers to the housing market since 2003. With increasing popularity and costs due to rising interest rates and early repayments, the college has outlined options for 2025, leaving the decision in the council's hands.

Current Status

Each year, the council decides the budget allocated to the starters loan in Hoorn. The funds are managed by SVn, where loans are distributed to aspiring homeowners. Starters repay a portion of the loan each month, along with interest, contributing to the loan pool for future applicants.

Options for 2025

The council faces various choices for the starters loan:

Option 1: Unchanged Policy

Continuing the current budget and conditions will allow more loans but increase financial pressure due to higher interest costs.

Option 2: Budget Limitation

Setting a yearly cap of €3 million may reduce loan opportunities but lower costs for the council.

Option 3: No Additional Budget

Relying solely on repayments could drastically reduce loans issued, leading to increased interest costs.

Option 4: Termination

Ceasing the loan program entirely would benefit municipal finances but contradict supporting first-time homeowners as per the coalition agreement.

New Conditions

The council can also amend eligibility criteria by incorporating age limits or property price thresholds to assist those most in need. Adjusting the maximum loan amount could broaden assistance to more starters.

Next Steps

The council will convene on February 25 for discussions, after which the college will finalize a proposal incorporating feedback. A decision is expected this spring.