Oct 25, 2023 at 1:33 p.m
The limit for a mortgage with National Mortgage Guarantee (NHG) will increase from January 1. This means that people will soon be able to receive financial protection when buying a house up to 435,000 euros.
The NHG must reduce the risks of buying a house. If homeowners no longer have enough money for the mortgage due to unexpected events such as financial problems, forced sale or residual debts, the Stichting Waarborgfonds Eigen Woningen (WEW), the organization behind NHG, will assist.
In 2023, the NHG limit was still 405,000 euros. This limit will therefore increase by 30,000 euros for next year. The average price for a home is 422,000 euros in September this year. Anyone who wants to invest in making their home more sustainable can use the NHG for up to a loan of 461,100 euros.
In addition to the house price, income also plays a role in determining the maximum loan. The mortgage interest rate also plays a role. Those who use the NHG pay less mortgage interest.
Starters in particular have NHG
More than 40 percent of all owner-occupied homes in the Netherlands have a mortgage with NHG, according to figures from the organization. Starters in particular use it.
The WEW Foundation can arrange for the repayment of your mortgage to the mortgage provider under certain conditions. This does not apply if, for example, someone has been summarily dismissed or wants to move due to new housing needs. The foundation can also provide support with a budget coach, payment arrangement, a bridging loan or provisional refund of interest via the Tax Authorities.
Just like in 2023, consumers will pay 0.6 percent of the mortgage amount next year to make use of the scheme. “It is important that NHG is accessible to the target group, so that people can finance a home with the protection of NHG,” says Carla Muters of the NHG. “That is why we are happy that the NHG limit will increase in 2024.”
Image: ANP
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2023-10-25 11:33:12
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