What is the national mortgage guarantee (NHG)?

In most cases, we advise our clients to take out a mortgage loan with the National Mortgage Guarantee. The National Mortgage Guarantee (NHG) is a guarantee that you can obtain when applying for a loan for purchase or reconstruction of your home.

When taking a mortgage loan, you create a contract concerning loan repayment with the bank/creditor. However, there may be situations in your personal life that will have a temporary or total effect on further repayment of the mortgage loan.

Facility for debtors

Thanks to the NHG, you can then be classified as a debtor, which will help you to survive a difficult financial situation and allow you to continue living in your home. If your financial problems don’t appear to be temporary, you may be forced to sell your home. Revenue from the real estate may be lower than the sum that you still have to pay. Then, so-called residual debt arises.

The Guarantee Fund pays out the remaining part of the debt to the creditor. If you are not at fault for the forced sale, for example, if your income drops, you become unemployed or disabled, or one of your income streams is no longer taken into account, e.g. due to a divorce, the Guarantee Fund may decide that you don’t owe it any money. But the condition is that you did everything in your power to minimize the debt.

This means, for example, that if you are in arrears, you must contact the bank immediately to see what possibilities there are for solving the problem

Another facility for debtors is in the form of an additional deposit for lenders in the case where a mortgage loan with the National Mortgage Guarantee is overdue due to job loss, physical disability, divorce or the death of a partner. With the help of a facility for debtors, you can arrange the monthly rate that you are able to pay with your creditor, based on your income. The remaining sum that your unable to pay is charged as an additional sum of your loan. Thanks to this, you have more time to solve the problem of payment, which rules out potential sale of your home, so that you can continue living in it.

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