Block minister renounces lowering border mortgage guarantee – Financieele Dagblad

The limit for the National Mortgage Guarantee (NHG) this year remains unchanged at € 245,000. This is apart from the planned reduction by July 1, 2016 to € 225,000.

That’s Minister of Housing and National Stef Blok ( VVD) Tuesday in a letter to the House informed. Reason not to change the so-called costs limit the rise in house prices.

Impulse

In February this year the average house price in accordance with the Land Registry € 234,830. This is higher than the maximum house price of € 231,132 which the NHG guarantee applies. This maximum is lower than the official limit of € 245,000 as at NHG mortgage default are taken into account 6% additional charge. These include the transfer tax and notary costs and broker.

According to the Guarantee Private Residence (WEW), the NHG executes, it does not lower the limit good news news for homebuyers. “A house must remain accessible for as many people as possible,” says WEW director Arjen Gielen.

Reduced risk

the interest of an NHG mortgage is significantly lower than a standard mortgage because the risk for lenders is reduced considerably . On average it is about half a percentage point. The WEW disburses money as a home buyer can not repay its debt as a result of unemployment for example.

According to mortgage advisor Van Bruggen saves the buyers no further reduction in the price range between € 212,000 and € 231,000 to around € 80 per month interest.

Crisis Action

the NHG limit was temporarily increased as a crisis measure in 2009 to € 350,000 to give the housing market a boost. Then the border since 2012 has been reduced gradually again. The increase resulted in additional risks to the State. Consumers concluding an NHG mortgage pay one-time premium to WEW which the institution builds a buffer for benefits. The State acts as a backstop.

It is not further lower block according to the result of the rise in house prices. “This prevents the cost limit first falls well below the average house price to then rise again sharply as expected from January 1, 2017 the NHG cost limit is linked to the average house price.”

The reduction to € 225 000 by July 1 of this year was the last scheduled step in the series of cuts. Starting next year, the border would somehow be linked to the average house.