The Dutch National Mortgage Guarantee scheme is unique in Europe. It helps you take out a mortgage that is affordable and responsible from the start. And if you do run into problems meeting your payments due to circumstances beyond your control, the National Mortgage Guarantee may provide a safety net for you and your mortgage lender.
The National Mortgage Guarantee is referred to in Dutch as ‘NHG’ or ‘Nationale Hypotheek Garantie’.
Make sure your mortgage matches your income
When you take out an NHG-backed mortgage, you know for sure that your mortgage matches your income. That’s because your mortgage meets the criteria for responsible lending and borrowing set by the National Institute for Family Finance in the Netherlands (NIBUD). So you know for sure that you’re not borrowing more than you can afford. After making the monthly mortgage payment you’ll still have money left for other expenses like groceries, insurance and your savings account.
Safety net if you can no longer pay your mortgage
If you have an NHG-backed mortgage and can no longer pay your mortgage due to specific circumstances beyond your control, you and your mortgage lender can turn to us for support.
The specific circumstances under which NHG comes into operation are:
- if you lose your job
- if your relationship ends
- if you become disabled for work
- if your partner dies
NHG is a guarantee provided to the mortgage lender (for example the bank) by a government-backed foundation, the Homeownership Guarantee Fund (Waarborgfonds Eigen Woningen or WEW). If your circumstances change for reasons beyond your control, the NHG may provide a safety net for you to fall back on when times are tough.
NHG limit changes to €355,000 in 2022
Starting from 1st January 2022, the NHG cost limit for homes without energy-saving facilities will increase from €325,000 to €355,000. For homes where energy-saving provisions are made, the cost limit is 6% higher, at € 376,300. For the NHG, which ever is the lowest, the purchase price (excluding movable goods) or appraised market value, is leading with regard to the cost limit.
Sourch: NHG
