NHG limit to increase to € 435.000,- euro in 2024

The limit for a mortgage with National Mortgage Guarantee (NHG) will increase as of January 1st 2024. This means that people will soon be able to obtain financial protection when buying a house up to a value of €435,000,-.

NHG is designed to mitigate the risks associated with buying a home. In cases of unexpected events such as financial difficulties, forced sales, or residual debts that prevent homeowners from meeting their mortgage obligations, the Stichting Waarborgfonds Eigen Woningen (WEW), the organization behind NHG, steps in to provide assistance.

Because of this extra security, buyers with a NHG mortgage benefit from a lower interest rate compared to regular mortgages in The Netherlands. In 2023, the NHG limit was set at €405,000. For the coming year, this threshold will increase by €30,000, making it €435,000. The average price of a home in September of this year was €422,000. Those looking to invest in making their home more energy efficient can even secure a loan of up to €461,100 using NHG.

NHG is particularly popular among first-time homebuyers. More than 40% of all homes purchased in the Netherlands have a mortgage with NHG, according to data from the organization.

Under specific conditions, the Stichting WEW can facilitate the repayment of a borrower’s mortgage to the mortgage provider. However, this assistance is not available in cases where someone is terminated from their job with cause or wishes to move due to new housing preferences. Additionally, the foundation can provide support through a budget coach, payment arrangements, bridge loans, or provisional interest refunds via the tax authority Belastingdienst.

Like in 2023, home buyers applying for a NHG mortgage will pay 0.6% of the mortgage amount next year to take advantage of this program. “It is important that NHG remains accessible to its target audience, allowing people to finance a home with the protection of NHG,” says Carla Muters of NHG. “That is why we are pleased that the NHG limit is increasing in 2024.”

Not only home buyers can benefit from the NHG limit increase. In some cases also home owners that recently bought a property and now have a regular mortgage can refinance to an NHG mortgage if they also do some renovations. This could for example be interesting for clients that bought a property that was at the time valued slightly above the previous limit but under the new limit. With interest rates flat over the last few months they could benefit from lower NHG rates with also extra protection against risks as well as financing renovations.

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