Mortgage limit not down

The NHG limit will not be lowered in 2016. The reduction to € 225,000 that was planned for July 1 will not be implemented. The limit for an NHG mortgage remains € 245,000.

NHG mortgage limit remains the same

NHG mortgage limit remains the same

From 1 July 2016, the cost limit for an NHG Mortgage would be lowered from € 245,000 to € 225,000. The Home Ownership Guarantee Fund, the foundation behind the National Mortgage Guarantee, has now reached agreement.

Warranty and interest discount

Warranty and interest discount

The limit to where you can take out a mortgage with NHG therefore remains the same. Taking into account the additional costs, buyers can continue to finance a home up to € 231,132 with a National Mortgage Guarantee. The guarantee offers extra security in the event of payment problems and a possible residual debt. Lenders also often offer an interest discount with an NHG mortgage.

Increase in house price

Increase in house price

The reduction of the NHG limit has been postponed due to the rise in house prices. To stimulate the housing market, the limit for an NHG mortgage was raised in 2012 to € 320,000. This would then be gradually reduced to € 225,000 in order to link the NHG limit to the average house price in 2017. This last step is therefore not taken now.

Yo-yo with the mortgage standards

Yo-yo with the mortgage standards

The foundation behind the National Mortgage Guarantee had already been in conversation with Minister Blok for a while to cancel the reduction. According to NHG director Gielen, the reduction of the NHG limit is not necessary because a year later, if the limit is linked to the average house price, the limit would be raised again. In the NRC he even called it ‘yo-yo’ with the mortgage standards ‘dangerous’.

Consequences lower NHG limit

The lowering of the NHG limit in July has led to a run on mortgages in recent years. Buyers wanted to quickly take out a mortgage with the National Mortgage Guarantee under the old conditions. As of July 1, 2016, it would not be possible to finance a home above the maximum price of € 212,264 with an NHG mortgage. Buyers who do not qualify for NHG may experience the following consequences:

  • Due to the loss of the interest discount, the mortgage interest can be up to 1% higher.
  • A higher mortgage interest rate also means that you can borrow less.
  • No extra protection in the event of payment problems and a possible residual debt.

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