What Is the National Mortgage Guarantee (NHG)?

What Is NHG?

Buying a home involves a lot of choices. One term you’ll likely come across is NHG, short for Nationale Hypotheek Garantie (National Mortgage Guarantee). But what exactly is NHG, why might you want it (or not), and what are the conditions in 2025? In this blog, we explain it all in a clear and simple way.

What Is the National Mortgage Guarantee (NHG)?

The National Mortgage Guarantee (NHG) acts as a safety net for both you and the lender. When you take out a mortgage with NHG, the Homeownership Guarantee Fund (WEW) guarantees your loan. That means extra financial security.

If you experience financial hardship through no fault of your own, for example, due to disability, divorce, or the death of a partner, NHG helps you find solutions to keep your mortgage payments manageable. This may include adjusted repayment terms or restructuring the loan.

It’s also beneficial for lenders, as their risk is lower — and that means you often receive a lower interest rate on your mortgage.

Benefits of NHG

• Lower interest rates: Many lenders offer interest rate discounts for NHG-backed mortgages. That’s why NHG is often the most cost-effective option if you qualify.

• Added security: If you ever have to sell your home at a loss, NHG offers protection.

• Support with payment difficulties: NHG works with you to find solutions if you can’t temporarily meet your mortgage obligations.

What Is the NHG Limit in 2025?

In 2025, the NHG-limit is:

• €450.000

• €470.000 if you are investing directly in home sustainability for example by increasing your mortgage for renovations or energy-saving measures.

This makes NHG especially attractive if you want to buy and make your home more energy efficient.

When are you eligible for NHG?

You may qualify for NHG if:

• The value of the home (including renovation or sustainability upgrades) falls within the NHG-limit

• You choose a linear or annuity mortgage repayment structure

• The property is for permanent residence (not for rental)

NHG is applied for through your mortgage advisor as part of the mortgage application. Together, you’ll determine whether NHG is a good fit for your situation.

Frequently Asked Questions about NHG

Is NHG mandatory?

No, NHG is not mandatory. However, it is often a smart financial decision because it offers extra protection in case of unexpected life events and can give you access to a lower mortgage interest rate.

Can I add NHG later?

Unfortunately, no. NHG must be arranged at the moment you take out your mortgage or when you refinance it. You cannot add it retroactively once your mortgage has started.

Are NHG costs tax-deductible?

Yes, the one-time fee (0.4% of the mortgage amount) is tax-deductible. This can provide a small financial benefit on top of the long-term security it offers.

Can I use NHG with a family mortgage?

No, only mortgages from approved lenders are eligible for NHG.

Is NHG the same as a bank guarantee?

No, these are two different things. A bank guarantee is used to secure your purchase contract with the seller. NHG, on the other hand, is a national mortgage protection scheme that provides long-term security for you and the lender.

Can I finance a renovation with NHG?

Yes, you can finance a renovation with NHG, as long as the total mortgage amount — including renovation costs — stays within the NHG limit. Your home must also continue to meet the standard NHG conditions after the renovation.

Can I borrow interest-only with NHG?

No, since 2013, NHG only allows linear or annuity repayment types. Only existing interest-only mortgages from before 2013 may sometimes be continued.

What happens if my partner passes away?

In the event of your partner’s death, NHG may offer support if you’re struggling to pay your mortgage. Together with your lender, NHG looks for solutions. In some situations, a remaining debt may be forgiven, depending on the circumstances.

Is NHG only for first-time buyers?

Is this only when buying your first home in the Netherlands? Absolutely not. Move-up buyers can also benefit from NHG, as long as they meet the requirements.

Do NHG and lenders cooperate during payment issues?

Yes. In case of financial difficulties, lenders and NHG work closely together to explore options that help you stay in your home. This might include payment arrangements or temporary support, depending on your situation.

Summary

NHG is a smart choice if your mortgage fits within the NHG-limit. It provides peace of mind, protects against financial setbacks, and gives you access to a lower interest rate, often making it more affordable in the long run.

The NHG application is processed via your mortgage advisor and can offer major relief during uncertain times.

Thinking of buying, renovating, refinancing, or investing in sustainability? Then NHG is definitely worth considering.

Do you have questions or want to know if you qualify?
Get in touch for personal advice through a mortgage advisor who checks whether you meet the conditions and whether NHG is truly beneficial for your situation — we’ll gladly walk you through it.