The real cost of down payment loans for young people

A great success. The government allows people up to 35 years old to use 20% of the down payment on the purchase of their primary residence in a loan that they won't have to repay until the mortgage is paid off, at a 0% interest rate. In return, the home will become officially protected (VPO) and will have a price cap forever.

The big problem with home buying (for young people and adults alike) is facing the down payment, taxes, and expenses, which together can reach nearly 35% of the purchase price. However, there are two points to consider before making the decision to take them out.

First, the real cost of the loan. Even if the interest rate is 0%, the value of the apartment is capped forever. In the last year alone, the price of housing rose by 11.7%. Between 1990 and 2025, the price has increased by 270%. We don't know what will happen in the future, but following this trend, a current apartment worth €200,000 could easily be worth €600,000 in 20 years (we'll address this issue another day). If we use Emancipa't loans and want to sell the apartment, we will lose all this capital gain, since the updated value of a social housing apartment is based on "the cost of living." Therefore, the interest is zero, but the opportunity cost for 20% of the apartment is extremely high.

Secondly, the cost of the mortgage. Banks analyze your risk and determine the terms based on this. They currently offer mortgages at 90% or more for young people, albeit with a spread of 1% or 2% above the normal interest rate. If this were to happen with Emancipa't as well, the cost of the mortgage would skyrocket. An additional 1% interest rate on an average 25-year mortgage of €200,000 adds €30,000 in interest to the total amount.