Limit for a National Mortgage Guarantee to be raised to 450,000 euros

The limit for a mortgage with Dutch National Mortgage Guarantee (NHG) is going to be raised again next year. It will rise by 15,000 euros, which means that buyers of homes can now use it for up to an amount of 450,000 euros. The costs of this scheme will actually decrease.

The NHG ensures that people who purchase a home can receive a lower interest rate, but it also offers a safety net in case home prices drop. This also guarantees that they will not be left with residual debt. NHG also offers a safety net if homeowners are faced with financial problems or a forced sale.

Around 40 percent of all purchased homes in the Netherlands have a mortgage with NHG. The limit will increase to 477,000 euros for people who want to make their homes more sustainable.

The costs for closing a mortgage with NHG will be 0.4 percent of the total mortgage fee next year. Those costs are now at 0.6 percent.