In 2023, the NHG limit will increase to € 405,000, while the NHG premium will stay at 0.6%.
This increase will make it easier for more homebuyers to obtain a mortgage with NHG (National Mortgage Guarantee). NHG provides a safety net when people are pushed into forced sales or have outstanding debt.
According to Carla Muters, chairman of the NHG Executive Board: the increase is necessary due to rising housing prices. By 2030, the Cabinet wants to build 900,000 homes, with 2/3 being affordable. The government is currently using the NHG limit to define what defines the affordable home.
How does NHG work?
The "Nationale Hypotheek Garantie" (NHG) is a government-run system for home loan coverage in the Netherlands. The coverage protects the consumer if they cannot make mortgage payments in events such as a partner's death, a divorce, unemployment, or a disability. NHG will pay any outstanding debt if the consumer is forced to sell the property due to one of these events.
Using NHG limit in 2023
We can get our clients the 2023 NHG limit from 1st January 2023. What is good to know is that you don't have to wait to buy a home until 2023 to make use of the new limit. You can sign the purchase agreement in 2022 and only need to wait until 2023 to get the bank's approval.
