NHG-mortgage backing
NHG mortgage backing
for properties up to 325.000,=
what is it?
- The National Mortgage Guarantee (NHG) is a safety net.
- It helps you take out a mortgage that is affordable and responsible from the start.
- And if your circumstances change for reasons beyond your control, the NHG may provide a safety net for you to fall back on when times are tough.
The Dutch National Mortgage Guarantee scheme is unique in Europe. It helps you take out a mortgage that is affordable and responsible from the start. And if you do run into problems meeting your payments due to circumstances beyond your control, the National Mortgage Guarantee may provide a safety net for you and your mortgage lender.
The National Mortgage Guarantee is referred to in Dutch as ‘NHG’ or ‘Nationale Hypotheek Garantie’.
The benefits of the NHG
Your interest rate will be up to 0.50% lower than for a mortgage not backed by the NHG.
When taking out an NHG-backed mortgage, you can deduct the NHG fee from your taxable income.
If you take out an NHG-backed mortgage, you can be sure that your mortgage fits your finances, as the mortgage adviser will assess your mortgage application based on the responsible mortgage standards set by the Dutch National Institute for Family Finance Information (Nibud).
The NHG gives you a safety net to fall back on if, for example, you make a loss when selling your home. And if you lose your job, become unfit for work or get divorced.
If payment problems occur during the mortgage term due to occupational disability, unemployment, your partner’s death, or divorce, and there is no other option than to sell the house with negative home equity? The residual debt can then be waived.
the Safety net
If you have an NHG-backed mortgage and can no longer pay your mortgage due to specific circumstances beyond your control, you and your mortgage lender can turn to us for support.
The specific circumstances under which NHG comes into operation are:
– if you lose your job
– if your relationship ends
– if you become disabled for work
– if your partner dies
NHG is a guarantee provided to the mortgage lender (for example the bank) by a government-backed foundation, the Homeownership Guarantee Fund (Waarborgfonds Eigen Woningen or WEW). If your circumstances change for reasons beyond your control, the NHG may provide a safety net for you to fall back on when times are tough.
The aim is to help you keep your home and avoid being forced to sell at a loss.
who qualifies for it?
In 2021, the purchase price of the home – plus any renovation costs – may not exceed €325,000.
For energy-saving facilities, it is even possible to borrow up to € 344,500, as long as the extra amount is spent entirely on those facilities.
Furthermore, there are specific income requirements. For example, a self-employed person must have earned an income for at least 12 months from his or her business, and someone with a fixed-contract must be able to present a letter of intent. Standards also apply to the house. For example, the value of the house must be determined by a validated appraisal report.
If payment problems occur during the mortgage term due to occupational disability, unemployment, your partner’s death, or divorce, and there is no other option than to sell the house with negative home equity? The residual debt can then be waived.
survey and report required?
When purchasing an existing dwelling, a survey report must be drawn up if the valuation report shows that:
a. the costs of immediately necessary repairs of overdue maintenance are estimated to be more than 10% of the market value free of rental and use; or
b. further structural research is recommended.
The costs of immediately necessary repairs shall – even if the work is to be carried out under the applicant’s own management – be determined on the basis of implementation by third parties.
If the survey report is drawn up by a construction company, the structural report must be drawn up in accordance with the Nationale Hypotheek Garantie model structural report (see Appendix 3).
If there is an obligation to submit a survey report, the costs of immediately necessary repairs of overdue maintenance stated therein shall be considered (part of) the costs of quality improvement and the applicant shall be obliged to carry out the work (or have it carried out).
F.A.Q.
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If you have commissioned a Building Survey then you can request this. We can only offer this by prior arrangement as we have to make sure the vendor is content for this to happen — sometimes they say no — and we also ask for payment before the survey. Please ask when you book your survey. We will give you a time to meet us, which will usually be towards the end of our survey. Any earlier and we won’t be able to tell you anything substantive — please note that we cannot do our job properly if you stay for the whole inspection as it is distracting and prevents us from giving you the best service. We find that usually around 20 minutes is enough for us to explain our findings to you.
The length of time the inspection takes is dependent on the size of the property and the extent of any defects that may be identified. For guidance, an inspection of a typical three-bedroom house in reasonable order may take 1,5 – 2 hours. Larger properties and properties with multiple defects will take more time. For very big houses two surveyors may work together.
We try, wherever possible, to dispatch our report a day or so after the inspection. Building survey reports in particular are often 40 or 50 pages long and are all individually written so this takes time. If required, a brief verbal report can be made available upon receipt of payment.
We are confident in our abilities.
However, our surveys do have ‘get out’ clauses, but we do not hide behind them. Our surveys are always definitive. Basically, we’ll report on what we can see and not on what we can’t. We can’t guess, but we can give a considered opinion.
Our small print will be written clearly, is easy to understand and we stick by our quoted fee.
Check our Survey Terms and Conditions.
Absolutely not! A mortgage valuation is just that, a valuation of the property commissioned by your mortgage or loan lender, and written purely for their benefit to assess the risk of their loan against the resale value of the property.
A survey is written for you as the prospective buyer (or home owner), to give you the best possible assessment of the property’s condition, required repairs and maintenance, etc.