National Mortgage Guarantee – the Netherlands

Utrecht, Netherlands Better Finance, Interest rate subsidies, loan guarantees and loan insurance



The National Mortgage Guarantee (Dutch: Nationale Hypotheek Garantie [NHG]) is a guarantee scheme for providers of homeowner mortgages such as banks.  It guarantees to repay the residual debt if a bank forecloses on a homeowner mortgage.  It thereby helps increase availability of homeowner mortgages, reduce costs by reducing the risk to banks providing mortgages, and the risk to homeowners if they cannot afford to pay.

Actors involved

  • Nationale Hypotheek Garantie (NHG)



More information

The NHG guarantee is only available for mortgages which meet specific criteria for responsible lending and borrowing.  These place limits on the maximum mortgage available, and on the ratio of the mortgage to the borrowers’ income, ensuring borrowers can cover their living costs while servicing their mortgages.  Holders of NHG-guaranteed mortgages can draw on the guarantee in the following circumstances:

  • Loss of employment
  • Ill health or disability
  • Relationship breakdown
  • Death of a spouse or partner.

The guarantee is provided by a government-backed foundation called the Homeownership Guarantee Fund (Waarborgfonds Eigen Woningen) which was established in 1993.  It is funded by a levy of 0.7 per cent of the total amount of each mortgage guaranteed by the fund, payable by the borrower.