The National Mortgage Guarantee (NHG) is a solution if you are no longer able to pay your monthly mortgage due to circumstances. The safety net in the event of prolonged illness, an accident, a long time without work, death or, for example, divorce is offered by the Stichting Waarborgfonds Eigen Woningen (WEW). This organization was founded in 1993 and, if you have taken out an NHG mortgage, will guarantee the repayment of your mortgage on behalf of the national government via NHG. In this article you can read more information about NHG. Find out more about the advantages and disadvantages of NHG and how you qualify.

Who is eligible for the National Mortgage Guarantee (NHG)?

Every year around the National Mortgage Guarantee new conditions and standards are established. If you want to take out a mortgage with NHG, it is important to meet these requirements. For providers of mortgages, NHG reduces the risks of offering a loan (with your house as collateral). The guarantee allows you to get a mortgage with a lower mortgage interest rate.

To be able to get a discount on your mortgage, you pay a one-off amount to the Home Ownership Guarantee Fund. If you want to claim NHG, it is also important to pay attention to the specific requirements. For example, your owner-occupied home may not be more than € 355,000 (from 2022) in purchase price. If you plan to take energy-saving measures, the NHG cost limit is 6% higher, namely € 376,300.

There are also requirements for income and how you get this income. An entrepreneur must be operational for at least 1 year and also have a specific document drawn up. This is a so-called Entrepreneur’s Income Statement.

If you have a fixed-term employment contract, it is mandatory to show a letter of intent on the employer statement. Furthermore, an important journey is that the value of the home is determined independently. Submitting a validated valuation report is mandatory.

If problems arise during the period of your mortgage regarding payment due to disability, unemployment, death of your partner or divorce and there is no other option than to sell the house at a loss, the NHG can condone the residual debt. You also do not have to repay the residual debt in this situation, as it will be waived.

What are the advantages and what are and disadvantages of NHG?

The advantages of NHG:

Lower monthly payments due to a significant discount on your mortgage interest, since the lender has less risk.
Do you have payment problems due to incapacity for work, unemployment, the death of your partner or divorce? Then there are all kinds of solutions available to bridge this annoying period by means of interest breaks or partial collections. Another possibility is that the mortgage costs are temporarily reduced. This solution has been given the name housing costs facility.
Any residual debt that remains when the house is underwater and has to be sold can be forgiven under strict conditions.

The disadvantages of NHG:

There are costs associated with an NHG mortgage. One-off costs (NHG bail commission) that are 0.6% (from 2022) of the total mortgage.
Only available up to a certain amount of mortgage. Purchase price of a maximum of € 355,000.

Tip: If you have a considerable amount of your own money or if you want to make significant repayments during the term of the mortgage, a mortgage with NHG may be less interesting. Get good advice from a hypotheekadviseur from Bliss. As soon as you have more savings, the interest benefit decreases. An adviser can tell you more based on current interest rates and calculate what is best for your personal situation.

Would you like to know more?

Interested in buying a house safely and responsibly with NHG? Bliss will be happy to discuss with you whether a mortgage with NHG is an attractive solution. Schedule a no-obligation and free appointment with one of our advisors.

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