Buying a home in the Netherlands can be exciting, but also financially daunting. That’s where the National Mortgage Guarantee (NHG) comes in. Known in Dutch as Nationale Hypotheek Garantie, NHG is a government-backed scheme designed to make homeownership more secure and affordable. Whether you're a first-time buyer, an expat, or someone planning a renovation, understanding NHG can help you make smarter financial decisions.
What Is NHG?
NHG is a public mortgage insurance scheme that protects both borrowers and lenders. If you take out any type of mortgage with NHG, you're essentially adding a safety net to your home loan. It ensures that your mortgage is aligned with your income and offers protection if life throws unexpected challenges your way, like job loss, divorce, disability, or the death of a partner. These are situations you would rather not think about now, but they have serious financial consequences.
What happens then if you cannot pay you temporarily cannot pay your mortgage? The National Mortgage Guarantee offers their assistance. Then you and the bank both are guaranteed that the mortgage will be repaid.
How does this work in practice?
The portion of the mortgage that you cannot afford you can add it to your mortgage debt. The amount that you can add is up to 9% of your total NHG mortgage. Eventually you will have pay it back, but nobody will force you to sell your home.
Benefits of NHG
Lower Interest Rates
Because NHG reduces the lender’s risk, banks often offer discounted mortgage interest rates, up to 1% lower than non-NHG mortgages. The % interest rate advantage depends on the bank.
Financial Protection
Under certain conditions (unemployment, disability, divorce, or death of partner) the debt to the fund is forgiven. For any other reason you will have eventually to repay your debt.
Tax Deductible Fee
The one-time NHG fee is tax deductible, making it easier to absorb the cost.
NHG Limits & Costs (2025)
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Maximum mortgage amount: €450,000
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With energy-saving measures: Up to €477,000
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One-time NHG fee: 0.4% of the mortgage amount (e.g., €1,800 on a €450,000 mortgage)
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Maximum term: 30 years
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Eligible property types: Primary residences only. You can not have NHG for a holiday home or an investment property
NHG for Renovations & Sustainability
Planning to renovate or make your home more energy-efficient? NHG allows you to include renovation costs in your mortgage, as long as the total amount stays within the NHG limit. This is €477,000 including the renovation costs.
Who Is Eligible?
To qualify for NHG, you must:
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Be a resident of the Netherlands
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Buy a primary residence
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Stay within the NHG price cap
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Demonstrate that you can afford the monthly payments - even in case of unexpected life events
Even if you're self-employed or don’t have a permanent contract, you may still qualify with the right documentation.
Pros and Cons of NHG
Advantages
- Lower interest rates - could save you thousands of euros in interest in the long term
- Financial safety net
- Debt forgiveness in hardship
- Tax deductible
Disadvantages
- Limited to properties under €450,000
- One-time fee (0.4%)
- Only for primary residences
- Requires eligibility documentation
- It is linked to a specific house. If you buy a new house you will need to apply for NHG again
- No interest rate advantage if your mortgage is less than 60% of your home's value.
The National Mortgage Guarantee is a powerful tool for anyone looking to buy a home in the Netherlands. It offers financial protection, lower interest rates, and peace of mind during uncertain times. Not sure if you are eligible or the NHG or that it is the best option for you? Get some good advice by a mortgage or financial advisor.
Good luck!