NHG: What is National Mortgage Guarantee (NHG) and how does it work?

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What is a National Mortgage Guarantee (NHG)?

National Mortgage Guarantee, also known as NHG, serves as a safety net for people facing residual debt or a forced sale of their home. These can be the possible consequences of not being able to repay your mortgage due to circumstances. Right Realtor gives you all the information below about an NHG so that you are well informed if you want to take out an NHG.

If you are going through a financially challenging period, you may find yourself unable to repay your mortgage due to rising costs or reduced income. A possible consequence could be that you are forced to sell your home or end up with residual debts. To avoid this, you can opt for a National Mortgage Guarantee when taking out your mortgage. This NHG protects you from the possible consequences of not paying off your mortgage. If you have already taken out a mortgage, it is also possible to add an NHG later.

Temporary reduction of housing costs with NHG

Do you have a mortgage with NHG? Then you can make use of the Housing Benefit Facility (WLF). The WLF is a temporary reduction in housing costs, which often makes it easier to get through a financially challenging period. However, you have to keep in mind that you will have to pay off the extra debt you accumulate with the WLF afterwards. You agree on this with your current mortgage lender.

Cancellation of residual debt with NHG

If circumstances force you to sell your home and a residual debt remains, this residual debt can be cancelled under certain conditions. This waiver is only possible if you have a mortgage with NHG and you meet the strict conditions.

Selling your house at a loss

When you want to sell your current home, the selling price may be disappointing and you may sell your home at a loss. This may leave a residual debt, which you can sometimes co-finance when you take out a new mortgage. Be sure to check with your mortgage provider first.

> Read more about 9 best tips for selling a house here

NHG limit set 2022

The limit for National Mortgage Guarantee in 2022 has been set at €355,000. This means that you are only eligible for an NHG if the mortgage of your home or the value of your home is lower than € 355,000. If either (or both) of these values exceeds €355,000, you are no longer entitled to an NHG.

Set NHG limit 2023

For 2023, the National Mortgage Guarantee (NHG) limit has been set at €405,000. This limit takes effect from 1 January 2023. If you want to use an NHG in 2023, you can only do so if the binding offer of the mortgage is set after 1 January 2023. At 0.6%, the premium in 2023 remains the same as in 2022.

The NHG limit in 2023 is higher if you meet certain energy-saving features. In that case, the limit for an NHG will be €429,300. Get information from your mortgage lender

> Read more about mortgage advisers here

What are the conditions for a mortgage with NHG?

Money drops in houseTo qualify for a mortgage with NHG, you must meet a number of strict conditions. If you meet the conditions for an NHG, your mortgage costs can be temporarily reduced against payment. As mentioned earlier, in some cases it is also possible to get forgiveness for your residual debts. The purpose of an NHG is to allow you to keep your home. This is mainly the case when you have a mortgage for your current home or when you want to remodel your current home. Remodelling your home puts you in the category of quality improvement.

You can apply for the mortgage with National Mortgage Guarantee (NHG) from a money or mortgage lender. The money or mortgage lender will assess your current financial situation and see if you meet the conditions for an NHG. These conditions are set by the Home Ownership Guarantee Fund Foundation. This is the foundation behind the NHG.

You can apply for the guarantee through a lender or intermediary. This will assess whether you meet all the conditions of the Home Ownership Guarantee Fund Foundation (the foundation behind NHG). Moving house with the NHG guarantee or converting your existing mortgage to a mortgage with NHG is also possible.

Employer’s statement for a National Mortgage Guarantee

If you want to take out a mortgage with NHG, the amount of your income must be determined and recorded. Determining your income can be done through an employer’s statement. This is an extensive form that needs to be completed by your employer. Depending on your personal preference, the employer’s statement can be completed offline or online.

Benefits of National Mortgage Guarantee

If you are struggling financially due to any of the causes that an NHG covers, it will look at how your mortgage can become affordable again so that you can continue to live in your home. This is taken care of by, for a fee, reducing your mortgage interest rate. Do you have to sell anyway and the proceeds are smaller than the mortgage? Then NHG can cancel the residual debt. In addition, you get a discount on the mortgage interest if you take out a mortgage with NHG. This discount is up to 0.5% per year.

Another advantage of a mortgage with NHG, is that you can take it with you if you sell your current home and move to another (purchased) home. Even if you already have a mortgage but without NHG, you can still take it out later.

Disadvantages of National Mortgage Guarantee

The biggest disadvantage of taking out a mortgage with NHG is that you pay extra for it. This is because in 2022, you pay a one-off 0.6% of the total amount of your mortgage, so this is a maximum amount of €2,130. In 2023, the percentage (0.6%) remains the same, but the limit is increased. As a result, you will pay a maximum of €2,430. So a mortgage with NHG is not free.

When you want to buy a house, another disadvantage of taking out an NHG with your mortgage is that you have to be able to put in more. Because you have more costs on your mortgage, you therefore also need to be able to put in more of your own money for this.

The final disadvantage of an NHG is that you will be registered with Bureau Krediet Registratie (BKR) if you use an NHG. As a result, it may be more difficult, for the first five years, to take out a new mortgage or loan.

Realtor and an NHG

When you are going to sell your house, a real estate agent will help you get the most out of the sale. This means that you are likely to receive a higher amount when you engage a real estate agent. A consequence of getting the most out of selling a home is that you minimise or even avoid any residual debt.

Another advantage of an estate agent when you want to take out an NHG is that a purchase agent can advise you and help you get the asking price down. This can be important when the home’s asking price is around the set NHG limit of €355,000 (2022) or €405,000 (2023).

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See below the frequently asked questions about National Mortgage Guarantee (NHG)

What is NHG limit in 2022?


For 2022, the NHG limit is set at €355,000 with a premium of 0.6%.

What is NHG limit in 2023


For 2023, the NHG limit is set at €405,000 with a premium of 0.6%. This limit takes effect from 1 January 2023.

What is an employer’s statement for an NHG?


An employer’s statement establishes your income. You get the statement completed by your employer.

What does NHG do for the buyer?


An NHG can temporarily reduce your mortgage burden. This often makes it easier to get through a financially challenging period. In some cases, residual debt can be forgiven.