NHG backed mortgage limit will rise to €355,000

The limit for a mortgage backed by the National Mortgage Guarantee (NHG) will rise to 355,000 euros next year. The limit is being raised considerably because home prices are rising enormously. Due to this increase, the supply of homes up to the NHG line is limited.

With the NHG, home buyers can insure themselves for repayment of their mortgage in the event of the death of their partner or a breakup. Customers pay a once-off fee for such a guarantee. In return, the mortgage lenders offer a lower interest rate.

The number of mortgages concluded with a NHG in the second quarter fell sharply. On annual basis, that number decreased by a tenth. "We are regularly asked why we do not increase the cost limit even further, so that we can protect more homeowners with the NHG safety net," said NHG director Arjen Gielen in an explanation. "However, this is not the solution to the current problem." According to the NHG, the solution lies in creating more homes.

This year the limit of of the NHG is still 325,000 euros. In 2020 it was 310,000 euros and in 2019 the limit was 290,000 euros. The limit is calculated based on the average house price in June, July and August.