With NHG (National Mortgage Guarantee) you can be sure of a responsible and affordable mortgage. Moreover, with NHG you limit the financial risks of owning your own home. For example, if you can no longer pay your mortgage due to: divorce, unemployment or disability. With a mortgage with NHG, the Home Ownership Guarantee Fund (Stichting Waarborgfonds Eigen Woning) ensures that ABN AMRO recovers the amount not repaid. So you will not be left with a residual debt.
What is the maximum NHG amount?
Since 1 January 2023 the maximum amount you can borrow with NHG has increased to € 405.000 . That means the purchase price of your home plus any remodeling costs cannot exceed €405.000 . Invest in energy-saving features for your home? Then the maximum cost limit is € 429.300 (106% of the market value of the home).
What are the benefits of NHG?
- You pay a lower mortgage interest rate
- You can deduct the cost from your income for tax purposes.
- Your mortgage application is reviewed against the Nibud (National Institute for Budget Education) responsible mortgage lending standards.
- With NHG you have more security.
NHG mortgage and your death risk insurance
Do you have a mortgage with NHG? Then you are no longer required to have (pledged) term life insurance. You then have a few options: stop your insurance, adjust it, or just let it continue.
More about a mortgage with NHG
You can apply for a mortgage with NHG if you meet the conditions. Are you going to renovate? Then the conditions are different from the purchase of a home.
In 2023, the main conditions for NHG:
- The total amount for buying the home or refinancing your mortgage may not exceed € 405.000 .
- Invest in energy saving features for your home? Then the total amount for the purchase of the house including renovation costs may not exceed € 429.300 (106% of the home's market value).
- Up to 50% of your loan may be interest free.
- The term of a mortgage with NHG is a maximum of 30 years.
- You cannot transfer a mortgage without NHG to a mortgage with NHG if the value of your home exceeds the cost limit.
So your house is worth more than €405.000 , then you cannot transfer to NHG, even if your mortgage is lower than € 405.000 . - You can get a mortgage with NHG for the purchase of a new home, an existing home, but also for a renovation or conversion of your home.
- If you are employed and want to get a mortgage with NHG, you will need an employer's statement.
You pay at closing 0.6% of the amount you borrow to buy your home. That means that for a loan of € 200.000 for financing with National Mortgage Guarantee € 1.200 pays. You pay these fees through the lender once you take out the mortgage. Payment regulates the notary.
If you want to improve the quality of your current home and want to borrow extra for this purpose? It is possible to transfer your mortgage to one with NHG. There are conditions attached to this.
The entire mortgage may not exceed €405 in total by 2023.000 . If you invest in energy-saving features for your home, you can get €429 (subject to conditions).borrow 300. The amount you want to spend on energy-saving features will be deposited in a building depot.
Quality improvement includes repairing overdue maintenance, improving or expanding the home. For example installing a new kitchen. The cost of quality improvement should be evidenced by an appraisal report, possibly an architectural report and/or a specification prepared by yourself.