20 Nov NHG Limit Increase

Starting in 2025, the National Mortgage Guarantee (NHG) limit will increase.

How does an NHG mortgage work again?
With rapidly rising house prices, it’s easy to forget that prices can also fall. In times of declining prices, you might face circumstances where you need to sell your home and end up with residual debt after the sale. Residual debt occurs when your mortgage is higher than the selling price of your home. While this may seem unlikely in the current market, the same was thought in late 2007 after a long period of rising house prices.

What protection does NHG offer?
NHG provides protection if you need to sell your home due to unfortunate circumstances, such as divorce, disability (loss of income), or death. Under certain conditions, you can appeal to NHG to avoid being left with residual debt. Additionally, you may request temporary reductions in housing costs in consultation with your lender, allowing you to remain in your home without the immediate need to sell. In this way, NHG serves as a safety net to help you stay in your home.

Good news: NHG limit increases, and fees decrease
As of January 1, 2025, the NHG limit will rise to €450,000. If you invest in energy-saving measures, the limit increases further to €477,000. The NHG limit follows the increase in market prices of homes.

Note: For the NHG limit, the lower value between the appraised market value and the agreed purchase price applies. For example, if the purchase price is €460,000 and the appraised market value is €450,000, you can still apply for an NHG mortgage up to €450,000.

The fee for obtaining NHG will decrease from 0.6% to 0.4% of the loan amount.

NHG Mortgage with interest discount
One of the key benefits of NHG is the protection it provides if you cannot meet your housing costs due to unforeseen circumstances. Additionally, lenders offer lower mortgage interest rates for NHG mortgages, as the lender’s risk is significantly reduced. The interest rate discount can be over 0.5%.

When you calculate the benefits, an NHG mortgage often makes sense. The NHG fee is tax-deductible, and the combination of protection and, especially in today’s market, the interest rate discount can quickly outweigh the cost.

If you have more questions about this, feel free to contact us!