NHG cost limit will increase in 2023
In 2023, the limit for an NHG mortgage will increase to € 405,000. In 2022 the limit was € 355,000. This increase will give more home buyers access to a mortgage with NHG (Nationale Hypotheek Garantie). NHG offers a safety net when people are faced with forced sales or residual debts.
Both the suretyship commission - the one-off amount that someone pays for a mortgage with NHG - and the NHG cost limit are determined annually via an agreed method. The aim of this is, on the one hand, to create more stability in the housing market and, on the other hand, to ensure that consumers retain access to a mortgage with NHG. This methodology was established together with the Ministry of Internal Affairs and the Ministry of Finance. The NHG cost limit rises less rapidly in a period of rising house prices and less sharply in a period of falling house prices.
In 2023, NHG has opted for the same method as in 2022 to determine the annual NHG cost limit. As a result, the cost limit rises from € 355,000 to € 405,000 and the NHG remains accessible to many buyers. With Energy Saving Facilities, the cost limit in 2023 will be € 429,300. Stability is also the starting point for the suretyship commission. In 2023 this will remain the same as 2022, namely 0.6%.
Disconnect NHG and affordability limit
The cabinet wants to realize 900,000 homes by 2030, two-thirds of which are affordable. At the moment, the NHG limit is the limit for what constitutes an affordable owner-occupied home. Due to the sharp rise in the NHG limit, homes at that price are affordable for fewer people, because incomes have risen less than the NHG limit in the past year. That is why the authorities are going to disconnect the limit for affordable owner-occupied homes from the NHG limit. For the regional housing deals to be determined at the end of this year and the beginning of next year, the current NHG limit of €355,000 will be used as the affordability limit, in accordance with the Housing Construction programme. This will therefore not change by increasing the cost limit to € 405,000.
Hugo de Jonge, Minister for Housing and Spatial Planning: “It is important that many buyers have access to a mortgage with NHG. Certainly in view of the current scarcity on the housing market and high house prices. Buyers run fewer financial risks with the NHG and often pay a lower mortgage interest rate. Buyers also receive help with financing to make their home more sustainable. The sharp increase in the NHG limit will give more home buyers financial security.”
Carla Muters, chairman of the NHG Executive Board: “The increase is really necessary. Due to the sharp rise in house prices, people are taking out increasingly higher mortgages to buy a house. We want to be there when that group has to deal with incapacity for work, excessive housing costs, divorce or other problems. NHG offers help with financial problems and any residual debts. That safety net is made available to a large group due to the increased cost limit.”
The NHG bail commission and cost limit are laid down in the Conditions & Standards, which NHG will publish no later than November 1 and which will take effect on January 1, 2023.
Last possibilities ‘Jubelton’: what can you still do?
This year it is still possible to make a tax-free donation for an owner-occupied home, also known as the 'jubelton'. The cabinet will reduce the exemption to €27,231 as of January 1, 2023 and will definitively abolish it as of January 1, 2024. What options are still available with the Jubelton?
Did you know that….?
An extra €62 million will be made available this year for those who want to make their owner-occupied home more sustainable.