NHG Calculator: What the Dutch Mortgage Guarantee Costs
NHG is cheaper to work out than most people expect: you pay a one-off premium of 0.4%of your mortgage amount, and that premium is tax-deductible. Below you’ll find the cost limit and a few worked examples, so you can see in one glance what NHG means for you.
What is NHG?
NHG stands for Nationale Hypotheek Garantie— the Dutch national mortgage guarantee. It’s a safety net. If you’re forced to sell your home at a loss because of job loss, disability, divorce or the death of a partner, and a residual debt is left over, the guarantee fund can write that debt off. On top of that, NHG almost always earns you a lower mortgage interest rate, because the lender takes on less risk. That discount varies by lender but is typically around 0.3% to 0.6%.
What does NHG cost? The calculation
The maths is simple. The NHG premium is 0.4% of your mortgage amount (0.004), you pay it once when you take out the mortgage, and you can deduct the full amount on your tax return. So:
NHG premium = 0.4% × mortgage amount
| Mortgage amount | NHG premium (0.4%) |
|---|---|
| €250,000 | €1,000 |
| €350,000 | €1,400 |
| €450,000 | €1,800 |
Because the premium is tax-deductible, your net cost is lower still. And once you factor in the interest discount, buyers often recover the one-off premium within two to three years.
The cost limit: up to €470,000
You can only get NHG if the purchase price (and your total mortgage) stays below the cost limit. For 2026 that limit is €470,000. If the property costs more, NHG is off the table — even by a single euro. A higher limit applies if you borrow extra for energy-saving improvements; the exact figures are in our knowledge-base article on NHG.
Pros and cons
- Lower interest rate. Almost every lender discounts a mortgage with NHG.
- Residual-debt protection. In a forced sale, your remaining debt can be written off.
- Deductible premium. The one-off 0.4% is tax-deductible.
- Downside: the upfront premium. You pay the 0.4% at the start, and above the cost limit NHG isn’t available.
Work it out with your mortgage
Want to see what NHG means in your situation — including your maximum mortgage, the buyer’s costs and whether you even fall under the cost limit? Our mortgage calculator runs the NHG check automatically.
Frequently asked questions
- What does NHG cost?
- The NHG premium is a one-off 0.4% of your mortgage amount. On a €350,000 mortgage that's €1,400. You pay it once, when you take out the mortgage, and it is tax-deductible.
- What is the NHG mortgage limit?
- For 2026 the NHG cost limit is €470,000. If the property (and your total mortgage) costs more than that, you can't get NHG. A higher limit applies if you borrow extra for energy-saving improvements — see our Dutch knowledge-base article for the exact figures.
- Is the NHG premium tax-deductible?
- Yes. The NHG premium counts as a one-off deductible financing cost for your own home. You deduct the full amount in the year you take out the mortgage, which softens the upfront cost considerably.
- Does NHG give a lower interest rate?
- Usually. Because the lender takes on less risk, most lenders offer a discount on a mortgage with NHG — typically around 0.3% to 0.6% lower, though it varies by lender. Over time that discount often recovers the one-off premium within a few years.
- What is NHG (Nationale Hypotheek Garantie)?
- NHG is the Dutch national mortgage guarantee. It's a safety net: if you're forced to sell your home at a loss because of job loss, disability, divorce or the death of a partner, the guarantee fund can write off the remaining debt. In return you pay a one-off premium.