If you’re an international who is looking to settle down and get a mortgage in the Netherlands, you’ve probably come across the term Nationale Hypotheek Garantie (NHG). While you may not know what it means, trust us: it’s very important.
Especially if you want to take the leap and buy a home with a few extra safety nets attached. What do we mean? Let’s get into it.
We teamed up with mortgage expert Fred van Maanen at Expat Mortgages to bring you up to date on all the latest information you need to know about the Nationale Hypotheek Garantie in the Netherlands. Want to know more? Set up a free consultation.
What is the Nationale Hypotheek Garantie or NHG?
The Nationale Hypotheek Garantie translates to the National Mortgage Guarantee.
The NHG is a guarantee on your mortgage that’s available in the Netherlands. It offers protection against any remaining debt if you can’t pay your mortgage due to involuntary unemployment, divorce, or an inability to work.
Should anything like this happen, the people at the NHG and your bank will try to find solutions so that you are able to stay in your house (instead of selling it).
If you are forced to sell your house and have to sell it for less than your mortgage balance, the NHG will cover the debt that’s left. Phew! 😅
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In 2024, the NHG will cost you 0.6% of the mortgage amount. However, it comes with great benefits and is a popular option among hopeful Dutch and international homeowners in the Netherlands.
Good news! In 2025, taking out a mortgage with the NHG will cost you 0.4% of the mortgage amount instead of 0.6%.
What are the requirements for taking out a mortgage with the NHG?
It’s important to know that the NHG is not available to everyone. In fact, there are a number of requirements that need to be met in order to benefit.
Whether you are eligible for a mortgage with the NHG depends on a number of personal factors:
What type of employment contract do you have?
If you have a permanent contract, your gross annual income will be taken into account. “If you have a temporary contract, you must be able to show a letter of intent for an indefinite contract from your boss,” Fred explains.
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“If you have a flexible contract or you can’t get the required intent for an indefinite contract, the average income over the past three calendar years will be taken into account. Hopeful buyers should also note that a probation period must have been passed first.”
That’s right, you do not need a permanent contract in order to qualify for the Dutch National Mortgage Guarantee (NHG)!
Are you a freelancer?
If you own a freelance business, you must prove that you have earned an income from the business over the past three calendar years, and you must be registered at the Dutch Chamber of Commerce.
However, there are other ways to meet this requirement, Fred tells us.
“Sometimes it’s possible to show just one calendar year of your business’s earnings plus showing the earned income from the same type of work as an employee in the two years before.”
Do you have any debt?
Debt can also have an impact, Fred explains.
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“If you have a personal loan, credit line, overdraft or any other financial obligation such as a private lease car or mobile phone contract, your loan-to-income range will be affected. Ground lease and leasehold payments will also be taken into account.”
Decided you want to get a mortgage with the NHG? Reach out to Expat Mortgages!
Fred and his team are the experts when it comes to calculating and securing mortgages for internationals in the Netherlands.
Using their skills and good standing with lenders, Expat Mortgages will ensure the road to securing your ideal mortgage is smoothly paved. Step one? Schedule a completely free consultation to discuss your options.
What is the purchase price of the house?
The purchase price of the house, including renovations, must not exceed the NHG limit. 👇
What is the Dutch NHG limit?
When it comes to applying for an NHG mortgage, it’s important to note that there’s a price cap on the expense of the home you wish to take out a mortgage on.
In 2024, the NHG is only available for houses that sell for a maximum of €435,000. However, in 2025, the NHG limit will increase to €450,000.
That being said, there is one exception to this rule: if you want to take measures to make the home more sustainable, then the mortgage value can be raised to 106% of the value of the home.
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This means that, in 2024, if you want to get an NHG mortgage on a house worth €435,000 but want to take measures to make it more sustainable, then the borrowing limit will be raised to €461,100.
In turn, this means that in 2025, this borrowing limit will increase to €477,000 if you plan on making sustainable renovations to the home, such as installing solar panels or better insulation.
Are internationals in the Netherlands eligible for the NHG?
In short, yes! If you are eligible for a mortgage in the Netherlands and meet the above requirements as well as the following, then you are just as eligible for a Dutch mortgage as a born and bred Nederlander.
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So, what extra steps must internationals take to be eligible for a mortgage with the NHG?
If you’re from the EU
As always, it’s a bit easier if you’re from the EU. In this case, the NHG doesn’t discriminate based on nationality, just whether or not you are able to finance the loan.
If you’re not from the EU
“If you’re a non-EU citizen — including someone from Switzerland, Norway, Iceland and Liechtenstein — you will need a permanent residence permit,” Fred explains.
However, it’s not end-game if you don’t have this.
“You can also be eligible for a Dutch mortgage if you have an EU residence permit for long-term residents, or a ‘Permanent Residence Permit for Citizens of the Union’, or a residence permit in the Netherlands for a purpose of stay that is not temporary within the meaning of Article 3.5 of the Aliens Decree.”
“For instance, being a highly-skilled migrant (so-called kennismigrant) is considered a non-temporary stay.”
Why should you opt for a mortgage with the NHG?
There are many reasons why you should consider taking out a National Mortgage Guarantee (NHG) as an international in the Netherlands.
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Firstly, lenders offer much lower interest rates if you opt for the NHG when sealing the deal on your Dutch mortgage. Lower interest rates mean lower monthly payments — leading to more money in your back pocket.
On top of this, the 0.6% of the housing cost that goes towards the NHG is tax deductible. In this case, you’re not only getting back some of your money but also spending less each month due to lower interest rates.
In short, with the NHG, your monthly mortgage costs will be lower, you’re protected in the worst-case scenario, and you can deduct the cost from the taxman!
Will you be making use of the NHG in the Netherlands? Tell us your thoughts in the comments below!
What is the NHG? Frequently asked questions
What is the Nationale Hypotheek Garantie (NHG) limit?
In 2024, the NHG can be used to take out a mortgage on a house worth up to €435,000. However, in 2025, this limit will rise to €450,000.
If you intend on making sustainable renovations to the home, 106% of the value of the house can be borrowed, increasing the limit to €461,100 in 2024, and €477,000 in 2025.
Can internationals take out a mortgage with the NHG?
Yes, internationals may also be eligible to take out a mortgage with the Dutch National Mortgage Guarantee (NHG). You must meet a number of requirements, however if you meet these, you are just as eligible for the NHG as a Dutch person.
Is taking out a mortgage with the NHG mandatory?
No, taking out a mortgage with the NHG is not mandatory. However, if you are eligible for it, there are many benefits to taking out a mortgage with the NHG.
Do I need a permanent work contract to qualify for the NHG?
No, you don’t need a permanent work contract to qualify for the Dutch National Mortgage Guarantee. Instead, your average earnings over the past three years can be calculated and used to determine whether or not you are eligible for the NHG.