National Mortgage Guarantee (NHG)

What is the National Mortgage Guarantee (NHG)?

The National Mortgage Guarantee (NHG) is a guarantee for mortgages up to €450,000 (in 2025). By taking out an NHG mortgage, you borrow responsibly and affordably. With mortgage protection, you as a homeowner face less financial risk and enjoy an interest discount. For instance, if you are unable to pay your monthly instalments due to unemployment or disability and are forced to sell your home, NHG (formally known as the Homeownership Guarantee Fund or WEW) may cover the shortfall between the sale price and your outstanding debt under certain conditions.

What are the National Mortgage Guarantee rules?

You qualify for National Mortgage Guarantee if you meet the following conditions:

• The primary NHG rule is that the purchase price of the property (including renovation costs, if applicable) must not exceed €450,000 (in 2025).
• If energy-saving measures are included, you can borrow up to 6% extra, up to a maximum of €477,000.
• The property must be your primary residence.
• The NHG scheme applies to all types of residential properties, apartments, and mobile homes with their plots. However, NHG is not applicable for the purchase of holiday homes, houseboats, garages, or caravans.
• With our NHG check, you can quickly find out if you are eligible for an NHG mortgage. Your mortgage advisor can also assess your eligibility and apply for NHG on your behalf. Book an appointment.

Nationale Mortgage Guarantee Limit

Not all mortgages qualify for the National Mortgage Guarantee, as there is an NHG limit based on specific situations. These limits are as follows:

• The maximum purchase price of the property (plus renovation costs, if applicable) is €435,000 in 2024.
• If energy-saving measures are included, the maximum cost limit is €461,100. The additional amount must be used exclusively for energy-saving measures.

National Mortgage Guarantee Costs (Guarantee Fee)

When taking out an NHG mortgage, you pay a one-off fee to NHG. This NHG percentage (also known as the guarantee fee) will be 0.4% of the mortgage amount in 2025. For instance, if the mortgage is €300,000, the NHG fee would be €1,200 (0.4% x 300,000).

No Residual Debt in Case of Forced Sale

If you are unemployed or disabled and unable to pay your monthly instalments, you may have to sell your house. If the sale proceeds are insufficient to cover your full mortgage, NHG will pay the shortfall to the bank under certain conditions. This is part of the NHG guarantee.

Advantages of an Nationale Mortgage Guarantee mortgage

Why choose an NHG mortgage? The key advantage is the interest discount offered by lenders for mortgages with NHG, which can be as much as 0.6% annually. This could save you hundreds of euros per year.

Moreover, NHG guidelines are developed in consultation with the National Institute for Family Finance Information (Nibud), ensuring an NHG mortgage is a responsible loan.

Another advantage is that in case of a forced sale, you won’t be left with residual debt. The Guarantee Fund may waive the remaining debt if they determine you were not at fault and have done everything possible to reduce the debt.

Disadvantages of NHG

One drawback of an NHG mortgage is the price limit for properties. You cannot use NHG for all types of homes. Additionally, there are one-off costs for securing NHG. As of 1 January 2024, a new rule requires that anyone taking out an NHG mortgage must be both (co-)owner and occupant, using the property as their primary residence.

NHG and Home Improvement

NHG is also available for improving your property, provided the improvements involve 'quality enhancement' such as overdue maintenance, upgrades, or extensions (e.g., a new bathroom, kitchen, dormer, or other improvements). Renovation amounts are held in escrow and only disbursed upon submission of invoices, meaning you may need to front the costs initially.

You cannot borrow more than 100% of the property value. If the value of your home is insufficient, you will need to contribute your own funds. However, for energy-saving measures, you may borrow up to 106% of the market value. Note that not all lenders follow this rule.

Energy-Saving Measures

Energy-saving measures can also be financed with NHG. If you are purchasing a property and planning improvements involving energy-saving measures, the actual costs can be included in the financing. The maximum cost limit in 2024 will be €477,000.

As of 2024, depending on the energy label of the property, there may be flexibility to exclude investments in energy-saving measures from the income assessment. This exception does not apply to properties with very high energy labels (A++++ or higher).

You can borrow more based on the same income if energy-saving measures are included. Energy-saving measures include cavity wall insulation, roof and floor insulation, HR++ glazing, a heat pump, and/or solar panels. Additionally, from 2024, depending on the energy label, a certain amount can be excluded from the income assessment for most properties. This flexibility does not apply to properties with an energy label of E or lower.

Is the National Mortgage Guarantee mandatory?

You are not required to take out a mortgage with NHG. However, if NHG is an option, it is generally a wise choice. Not only do you benefit from a slightly lower interest rate, but you can also be confident that the mortgage suits your financial situation, as it is calculated based on Nibud guidelines. Additionally, you won’t be left with residual debt if you are unexpectedly faced with a forced sale of your property.

Retrospective NHG Application

Can you obtain NHG for an existing mortgage? It is possible to refinance an existing mortgage into one with NHG. However, you must meet the NHG criteria outlined above. For the best advice on this, consult your mortgage advisor.