NHG LIMIT PER 2020 STRETCHED TO € 310.000,-. For those who want to buy a house in 2020, there’s a nice advantage. From 2020, the NHG limit will be € 310k. This limit stood at € 290k before.
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NHG calculation
The NHG (National Mortgage Guarantee) limit is determined every year. For the past two years this has been done by taking the average purchase price of properties sold in the months of June, July and August of the previous year. To determine the NHG limit for 2020, an average is therefore taken of the homes that were sold in 2019 during these months.
Average purchase price
The average purchase price for June was EUR 301,736, for July EUR 309,689 and for August EUR 316,183. By adding these amounts together and then dividing by three, you arrive at an average of 309,203 euros. This amount is then rounded to the nearest amount that can be divided by 5,000 euros. This means that the new NHG limit of 310,000 euros will be the outcome.
Energy saving measures
For buyers who take energy-saving measures at the home, this amount is being increased to 328,600 euros. When taking energy-saving measures, you can apply for a mortgage up to a maximum of 106 percent of the home value, where this limit is normally 100 percent. The NHG limit is therefore also broadened with the same percentage.
Change
In addition to raising the NHG limit, it is also new that from 2020 you cannot simply transfer your mortgage from one without a NHG to a one with NHG. If your home is worth more than 310,000 euros, you cannot switch to a mortgage with NHG. This is a disadvantage for many homeowners, because there is an interest discount for mortgages with NHG.
Obsolete
Despite this new limit, the value is now somewhat outdated, due to the relatively low level in June and July. It is therefore possible that, even with an expansion of the NHG limit, you still come above this limit and therefore do not qualify for a mortgage with NHG. But it’s definitely worth having checked.