What are the disadvantages of the National Mortgage Guarantee (NHG) for first-time buyers?
The downside of NHG lies in the costs, the limit, and the payback period. At the same time, NHG provides a safety net if you are no longer able to pay your mortgage. In addition, you usually receive a lower mortgage interest rate in return. You can read about how that works in our explanation of what NHG is. Below are the three drawbacks that affect you as a first-time buyer:
- You pay a one-off guarantee fee.
- The NHG limit acts as a ceiling.
- NHG is not always the cheapest route.
You pay a one-off guarantee fee
When taking out an NHG mortgage, you pay a one-off guarantee fee. In 2026, this premium is 0.4% of your total mortgage. For an average first-time buyer's mortgage, this adds up to over a thousand euros. You pay this premium, just like your purchasing costs, from your personal savings. That is money that you, as a first-time buyer, often also need for a financial buffer.
The NHG limit acts as a ceiling
The NHG limit is the maximum amount for which you can take out a mortgage with NHG. In 2026, this limit is €470,000, or €498,200 if you include energy-saving measures. Energy-saving measures here mean, for example, better insulating the home. If your mortgage exceeds that limit, NHG is not an option. This particularly affects first-time buyers in expensive municipalities, where you often have to borrow more. You can read more about these amounts in our explanation of the NHG limit.
NHG is not always the cheapest route
NHG provides you with an interest rate discount. However, that discount does not always outweigh the premium. According to the Consumentenbond, you usually earn back the costs within three years back. How quickly that happens depends on your mortgage and how long you live in the home.
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When do the disadvantages of NHG weigh most heavily?
The disadvantages weigh most heavily when you pay the premium but get little in return. This is the case with a small mortgage and a short duration of stay. If your mortgage is just above the limit, you miss out on NHG entirely. The following table compares four situations for first-time buyers.
First-time buyer situation | Do the disadvantages weigh heavily? | Why |
|---|---|---|
Large mortgage, thirty-year fixed rate | No | The interest rate discount continues for a long time and exceeds the one-off premium |
Small mortgage on a small apartment | Yes | You pay the full premium, while the interest rate discount yields little |
Mortgage just above the NHG limit | Yes | Without extra personal savings, NHG is not possible, so you miss out on the safety net and the interest rate discount |
Moving again within two years | Yes | The one-off premium has not yet been recouped |
What many first-time buyers do not know is that the mortgage amount carries more weight than the term. Besides NHG, there are also more starter schemes that make your first home more affordable.
What can you do if NHG is not a good fit?
If NHG is not a good fit, you have three other routes. Which route works out best depends on your home and your savings. These three routes are the most common for first-time buyers:
- A mortgage without NHG does not cost a premium, but the bank usually charges more interest.
- Sustainability improvements raises the NHG limit, allowing more expensive homes to still qualify.
- A lower search budget keeps you under the limit, making NHG a viable option.
Calculate your maximum mortgage before making an offer. This way, you know in advance if you will stay under the NHG limit. Without this guarantee, you also miss out on a safety net in case of setbacks. If you are in doubt, discuss your options during a free initial mortgage consultation. Schedule that meeting via the contact page.
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For whom is the National Mortgage Guarantee (NHG) a wise choice?
For most first-time buyers, NHG is a smart choice, despite the drawbacks. You usually purchase your first home with a full mortgage and a small buffer. That is precisely when the safety net is valuable, as it is difficult to cover a financial setback on your own.
If you lose your job, NHG helps keep your housing costs affordable. In the event of a forced sale, NHG can also waive the residual debt. This debt is the amount remaining if the sale proceeds do not cover your mortgage. Without NHG, you are fully responsible for that amount yourself.
How does homeup help you as a first-time buyer when purchasing a home?
homeup supports you as a buying agent with two services. Purchase guidance on the open market costs €2999. If you choose a home from our exclusive listings, a fixed price applies. Our guidance costs €5999 in that case. In both scenarios, you only pay upon the transfer of keys. homeup does not provide mortgages itself, and therefore does not provide NHG. Here is what you get with both services:
- Amortgage certificate we arrange in advance, so your financing is secured before you start searching.
- Your legal documents we review, from the purchase agreement to the deed of transfer.
- The market value of the property we investigate, so you never pay too much.
- Abidding strategy we devise, and we submit the offer on your behalf.
- A free initial mortgage consultation is included with both services.
All buyers on the homeup platform have been pre-screened financially. On average, homeup buyers purchase a home three months faster. This is because the search phase is shortened. You start with register for free on the platform.
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