National Mortgage Guarantee

The Homeownership Guarantee Fund is responsible for the policy and implementation of the National Mortgage Guarantee, better known as Nationale Hypotheek Garantie (NHG) in Dutch. The NHG stands for an accessible owner-occupied housing market for vulnerable groups and consumers in vulnerable situations, even when the macro-economic situation is unfavourable.

To this end, the NHG offers consumers access to responsible financing for the purchase and improvement of a home, assistance with mortgage management and preservation of the home and a safety net in vulnerable situations. This is effected in the interests of the consumer.

The Homeownership Guarantee Fund has back-up agreements with central government and municipalities. This means that the Fund can always meet its payment obligations. The NHG product complies with the conditions set for a guarantee to qualify as permissible credit protection for banks.

Low risk

A mortgage with NHG limits the financial risks of an owner-occupied home for the consumer. It provides a safety net in the event of divorce, incapacity for work, unemployment and the death of a partner. At the same time, the lender is given security if the consumer can no longer meet his or her obligations and the house has to be sold with a residual debt. Because of the lower risk, the lender can offer a mortgage at a favourable interest rate. For the NHG, consumers pay a lump sum of 0.7% on the total mortgage amount. These costs cannot be co-financed in the NHG mortgage. 

The maximum purchase amount of the home (including any renovation costs) may amount to € 310,000 in 2020. If consumers take energy-saving measures, they can finance an additional 6%, up to a maximum of € 328,600 (€ 310,000 plus 6%).

Usage

Flex workers with a statement of employment prospects and self-employed persons with an income statement can use the NHG. For seniors who will reach state pension age within ten years or who have already reached it, NHG has adjusted its conditions so that seniors have responsible access to a NHG mortgage. It is also possible to co-finance a residual debt arising from a loan with NHG in a new loan with NHG.