Increased NHG limit: these are the benefits
The benefits of the increased NHG limit
The increase in the NHG limit means that, as a home buyer, you are more likely to take out a mortgage with a National Mortgage Guarantee (NHG). An NHG Mortgage offers you more financial security, because you can get help from the Stichting Waarborgfonds Eigen Woningen (WEW) in case of problems. In addition, with NHG, you can benefit from a lower interest rate, which reduces your monthly expenses.
If you buy a home with a purchase price of up to €435,000, you may qualify for NHG. If you borrow extra money to make your home more energy efficient, for example through insulation, solar panels or a heat pump, you can even borrow up to €461,100 with NHG. However, you must meet certain conditions, such as an income test, a valuation report and a quote from the supplier.
What are the eligibility requirements for NHG?
To qualify for an NHG mortgage, you must meet a number of conditions. These have to do with, among other things:
• The purchase price or value of the home, which cannot exceed €435,000, or €461,100 if you take energy-saving measures
• Your income, which must be sufficient to cover the mortgage costs
• Your residence status, which must be valid in the Netherlands
• Your type of mortgage, which must be annuity or linear, with a maximum term of 30 years
• Your own money, which you must be able to prove if you borrow more than the value of the home
• You pay a commission to the Stichting Waarborgfonds Eigen Woningen (WEW), which amounts to 0.6% of the mortgage amount
What is the difference between NHG and non-NHG mortgages?
The difference between NHG and non-NHG mortgages is that a mortgage with NHG offers more financial security and a lower interest rate than a mortgage without an NHG. NHG stands for National Mortgage Guarantee. With NHG, you are protected against residual debt if you have to sell your home due to unforeseen circumstances, such as unemployment, divorce or disability. In addition, with NHG, you can benefit from a lower interest rate, which reduces your monthly expenses.
A mortgage without an NHG does not have these benefits, but it does give you more freedom in choosing your home, your type of mortgage and your fixed interest period. You also do not have to pay a commission to the Stichting Waarborgfonds Eigen Woningen (WEW), which amounts to 0.6% of the mortgage amount.
More information and want to know if you're eligible for an NGH mortgage? Contact us to discuss your personal situation. We also immediately do a free mortgage check for you worth €300, -.