Soon the mortgage through crowdfunding

It will soon be possible to take out a mortgage through crowdfunding. The ABC has approved the first initiative that brings buyers and investors together.

First initiative for crowdfunding mortgage

First initiative for crowdfunding mortgage

Good Finance is the first lender in the Netherlands that has received permission to offer mortgages (in part) through crowdfunding . The ABC has granted the start-up a full license to offer and broker a mortgage loan.

After a delay, Good Finance expects to launch the crowdfunfing platform in August 2018. They then bring buyers and private investors together to finance a home:

  • Buyers can apply for a mortgage via the Good Finance website and campaign for part of the financing.
  • Investors choose a campaign and can invest from € 250. For this they receive monthly interest and repayment.

Crowdfunding: individuals borrow from each other

Crowdfunding: individuals borrow from each other

With the Good Finance permit, the way is open for private individuals to lend each other money for a home. Buyers have a new lender, which is good for competition in the market. On the other hand, it offers the opportunity for investors to achieve a return. This is interesting at a time when savings rates are low and investments are uncertain.

Mortgages popular with investors


The housing market has been longing for investors. Institutional investors (such as pension funds) in particular see Dutch mortgages as a reliable investment. This led to a flow of new lenders who quickly gained market share on the Dutch mortgage market. With the crowdfunding mortgage, private individuals can also invest in the mortgage market.

“The economy”

The crowfunding mortgage fits in with the trend of the we economy or collaborative economy. Well-known examples of this are: staying at people’s homes instead of a hotel or renting a car from a private person instead of a rental company. It was a matter of time whether this principle would spread to the financial world. The first initiatives were already on the consumer credit market. Private individuals will therefore soon be able to get together for a mortgage.

Success factors crowdfunding

Success factors crowdfunding

The success of crowdfunding initiatives is determined by the number of users. No investors without buyers and no investors without investors. The question is what Good Finance can offer to interest both groups:

  • Just like all lenders, the start-up must adhere to current lending standards. It will therefore come to a competitive mortgage interest rate and conditions. By (partially) financing the mortgage with private individuals, the mortgage interest rate can be lowered because the bank’s risk is falling.
  • Investors expect a good return at a limited risk. Good Finance is currently focusing on an intended return of 3.5% per year with a term of 7.5 years. This is not without risk. Although Good Finance has a game for defaulters, there is a chance of losing if the project goes wrong.

These matters must become clear in the months leading up to the launch. We will follow the initiative with interest. Good Finance offers more information on the website.