National Mortgage Guarantee limit set to rise over 4% to €470,000
Prospective homeowners looking to secure financing under a popular Dutch program to reduce interest rates will see the maximum lending limit increase by over 4.4 percent next year. The National Mortgage Guarantee (NHG) threshold will increase by 20,000 euros to a maximum amount of 470,000 euros. Those looking to purchase an energy-efficient home will see a larger increase from 461,100 euros this year to 498,200 euros starting in January.
The NHG provides a guarantee to mortgage lenders saying that government-backed foundation WEW will repay mortgages should one of a handful of incidents arise. The NHG steps in when homeowners die, lose a job, lose the ability to work due to a disability, or separate from their partner. It can also provide assistance when a home is sold at a loss.
With the extra security, lenders are able to provide a discount on mortgage rates, often up to 0.5 percent lower. The amount varies per lender and situation, with different discounts offered based on the duration of a fixed interest rate or the percentage of the purchase being financed.
Currently, some 40 percent of all homeowners have an NHG mortgage. Those who qualify also have to pay a surety bond of 0.4 percent of the total loan in exchange for the NHG, which will remain the same next year. The amount was lowered from 0.6 percent in 2024.
“Since 2023, the NHG threshold has been based on the average purchase price of the past 27 months, plus five percent, and rounded to an amount divisible by 5,000 euros,” the NHG said in a statement issued on Wednesday. The NHG limit will apply to all home purchases from 2026, including mobile homes and the lot of land where they are placed. Previously, there were separate amounts for these types of purchases.
“By adjusting the NHG threshold annually, we align with house price trends and allow more consumers to benefit from the advantages NHG offers, such as a more secure financial position and lower interest rates,” said Carla Muters, the NHG Board Chair
