It's always wise to take out a mortgage with a National Mortgage Guarantee when available. The National Mortgage Guarantee, or NHG, offers additional security to mortgage lenders. If you become unable to meet your mortgage payments at some point, for example, due to unemployment, disability, or the death of your partner, the NHG can help, giving mortgage lenders greater assurance that the mortgage payments will be met. This means you can borrow a higher mortgage amount with the NHG.
Taking out a mortgage with NHG is not free. A premium is paid for this, proportional to the purchase price of the property in question. This premium is 0.7 percent. The NHG used to determine the cost limit for the subsequent year based on house prices in June, July, and August of that year. This method will be discontinued, and the cost limit will be calculated differently. Under the new method, the calculation will be based on the average purchase price of homes sold over the past 39 months. A correction factor of 6 percent is applied. The new method is not implemented immediately, but in three steps, with the first step based on 15 months and a 2 percent correction factor.
With an NHG mortgage, you can generally borrow more for a home than without one. The added security for the mortgage lender ensures they are willing to lend a higher amount. You can also add an additional loan amount if you want to invest in making your new home more sustainable. Currently, you can borrow a maximum of €328,600 if you want to invest in energy-saving measures for your new home. This amount will increase to a maximum of €344,500 as of January 1, 2021.
First-time buyers with an NHG (National Mortgage Guarantee) can borrow slightly more in 2021, which is good news. It's quite difficult, especially for first-time buyers, to buy an affordable home. The question is not only what the NHG will do, but also what will happen to house prices. Will the housing market change? The coronavirus crisis is causing rising unemployment, which will increase income uncertainty, especially for younger households. This is putting pressure on house prices, and this could mean that house prices will fall. However, there's no certainty about this.
Are you planning to buy a new home and want to be sure of its current condition? That's always a good idea. You want to be sure you won't face high maintenance costs in the near future. A building inspection will show you the property's condition and what costs you should expect in the near future. Homekeur is happy to perform the building inspection for you. Feel free to contact us for more information and advice, or schedule an appointment today.
The cost of a building inspection (up to 250 m²) is only €489 including VAT. We'll conduct a comprehensive building inspection and you'll receive a building report. Do you have any questions? We're happy to help and can schedule an appointment with an expert inspector right away if you wish!
