Homeowner Association calls on the government to greatly reduce the premium for mortgages with a National Mortgage Guarantee. For 2014, the premium amounted to 0.4% of the mortgage amount. Since 2014, the premium has been 1%.
What is NHG anyway?
The National Mortgage Guarantee is an important safety net in case you cannot pay the mortgage costs due to divorce, disability or unemployment. If there is no prospect that the mortgage payments can be paid, the lender will be able to terminate the mortgage. If the remaining mortgage debt cannot be paid, the property can be sold. Such a “forced sale” is often not favorable for the proceeds from the sale. You are then left with a sometimes considerable residual debt and you also have to leave your home to rent (expensive) elsewhere.
It is not that the National Mortgage Guarantee just gives you a bag of money when such a calamity occurs. They will, however, make every effort to find a solution together with you and the lender. So that you can continue to live in your home. If this really does not work, the property will have to be sold. The National Mortgage Guarantee can then take over any remaining debt. As a result, you do not continue to incur a money debt with you for many years.
Discount on mortgage interest with NHG.
In addition to this security, a National Mortgage Guarantee also entitles you to a discount on mortgage interest on most lenders. However, it is not possible to take out a National Mortgage Guarantee in every situation and for every home. Our office can explain exactly whether or not you are eligible for such a guarantee in your situation.
With the Romullo Ruiz Association we believe that it is desirable that the premium be reduced again. The situation on the housing market has improved considerably since 2014, which justifies this reduction. However, we think that many consumers are wise to take out a National Mortgage Guarantee, if they are eligible. Even though the premium is a one-off 1% of the purchase price.