The Dutch government aims to support the solution to the existing housing shortage by releasing over one billion euros to break the increasing housing prices. More people choose to buy a home without the NHG safety net because fewer properties are available for sale below the cost limit.
In response to rising housing prices, National Mortgage Guarantee is increasing the NHG limit to € 355,000 in 2022. The maximum allowed financing is calculated based on the average cost of a home in the Netherlands. The average housing price in 2022 is expected to be € 400,000. This amount's annual rise is proportional to the average property price.
In the Netherlands, the 'Nationale Hypotheek Garantie' (NHG) is a government-run home loan insurance arrangement. This guarantee protects the consumer if they cannot pay a mortgage due to unforeseen circumstances, such as the death of a partner, divorce, unemployment, or disability. When the consumer is forced to sell the property due to one of these circumstances, a residual debt will be repaid by NHG.