National Mortgage Guarantee (NHG)

What is NHG?

The National Mortgage Guarantee (NHG) is the guarantee you can get if you take out a loan for buying or renovating a house. An NHG Mortgage offers more security and an attractive interest rate discount.

Payment problems

When you take out a mortgage, you make agreements with the lender about the payment of your mortgage costs. However, situations may arise in your life that make it temporarily impossible to repay the mortgage in whole or in part. With the National Mortgage Guarantee you may be eligible for the Housing Costs Facility. This will enable you to bridge this difficult period, so that you can continue to live in your home.

Residual debt

If your payment problems are not of a temporary nature, you may have to sell your home in such a case. The proceeds from your home may be lower than the amount you still have to repay. A residual debt then arises. The Homeownership Guarantee Fund pays this residual debt to the lender.

If you are not at fault for the forced sale, for example if your income decreases due to unemployment or incapacity for work, the Guarantee Fund can waive this amount and you therefore no longer have to repay this amount. An NHG mortgage thus offers extra security.

Mortgage terms
Eigenwoningforfait (Notional rental value)
"Eigenwoningforfait" is a tax on the theoretical income that a homeowner could earn by renting out their home, even if they do not actually rent it out. Erfpacht (Ground lease)
Often houses in the Netherlands are not on private land, but on leasehold land. This leasehold land is then rented from the landowner (often the municipality). Hypotheekakte (mortgage deed)
The mortgage deed is the official contract for a mortgage. The mortgage deed contains all agreements with the bank that relate to the mortgage. Hypotheeksom (Mortgage sum)
he mortgage sum is the total amount that is borrowed from a lender. Koopakte (Purchase deed)
The written purchase agreement between the buyer and seller of a house. Other words for koopakte are koopcontract or koopovereenkomst (purchase contract or purchase agreement). Maandlast netto (Monthly charge net)
The net monthly payment is the amount that is paid monthly for the mortgage after tax settlement. Therefore, the tax is taken into account. National Mortgage Guarantee (NHG)
 Notariskosten (Notary fees)
When you buy a house, a visit to the notary is unavoidable. The deeds required for the purchase of a home are drawn up by a notary. Taxatiekosten (Appraisal costs)
The appraisal costs are one of the additional costs when taking out a mortgage. They are the costs for the valuation of a house by an independent appraiser. WOZ-waarde
WOZ stands for Valuation of Real Estate (Waardering Onroerende Zaken). The WOZ Act ensures that all governments use the same valuation for a home when levying taxes.