The Kadaster (public land registration) has published the average purchase price of new homes in August 2019. The NHG limit is increased to € 310,000 in 2020 from € 290,000 in 2019. An explanation of the National Mortgage Guarantee is found on nhg.nl.
The NHG limit is linked to the average purchase prices of homes in June, July, and August of the year before.
|Month||Average purchase price|
The closest number to dividing € 309,203 by € 5,000 is € 310,000.
If you want to invest in energy-efficiency measures, then you can finance your home up to 106%, instead of 100%. You can borrow an additional 6% extra, which means a maximum mortgage of € 328,600 with a National Mortgage Guarantee. Consider, for example, cavity wall/roof insulation or the replacement of the central heating boiler.
The premium for a mortgage with a National Mortgage Guarantee reduces to 0.70% from 0.90% per 01-01-2020. Minister Ollongren has informed the ‘Tweede Kamer’ on 09-10-2019.
If the market value of your home is above the limit, then remortgaging from a mortgage without NHG to a mortgage with NHG is not possible anymore in 2020.
When can you make use of the new limit of € 310,000?
You can make use of the new limit for properties bought in 2019. However, the banks’ binding offer needs to be published in 2020. If your mortgage needs securing in 2020, then you can make use of the new limit.
What if the purchase price is € 315,000 and the market value is € 310,000?
The leading factor for NHG is the lowest of the purchase price or the appraised market value. If the purchase price is € 315,000 and a market value of € 310,000, then NHG is possible up to € 310,000.
What if the appraised market value is € 315,000?
The leading factor for National Mortgage Guarantee is the lowest of the purchase price or the appraised market value. If the purchase price is € 310,000, then the market value of € 315,000 for NHG does not have to form an objection. The market value of € 315,000 for refinancing/remortgaging purposes is not accepted.