From January 2027, lenders assessing mortgages backed by the Netherlands’ National Mortgage Guarantee must account for estimated foundation repair costs when a property is confirmed as having a high foundation risk. The change could reduce borrowing capacity for some homebuyers.
Homebuyers in the Netherlands could face tighter borrowing limits when purchasing properties at risk of foundation damage, under new rules introduced by the National Mortgage Guarantee (NHG).
From 1 January 2027, lenders offering NHG-backed mortgages must take expected foundation repair costs into account when calculating how much a buyer can responsibly borrow, where the property is assessed as having a high foundation risk.
The change is intended to prevent buyers from taking on mortgage debt without enough financial room to deal with potentially expensive structural repairs after purchasing a home.
NHG announced the new requirements on 27 October 2026, explaining that lenders will use a standardised assessment process to identify properties where foundation problems could create significant future costs.
The rules apply to mortgages covered by NHG, rather than automatically applying to every mortgage in the Netherlands.
How the new Dutch mortgage rules will work
Under the new framework, foundation risk assessments will help lenders and buyers understand the potential financial consequences of purchasing a property.
Property valuation reports have included foundation risk assessments since April 2026. These use a scale from A to E, with A representing the lowest risk and E the highest.
From January 2027, properties rated D or E will require a preliminary foundation investigation under the NHG framework.
That investigation helps establish whether the property’s actual foundation risk is low, medium or high.
If the investigation identifies a high risk, the lender must take the estimated repair costs into account when calculating the buyer’s borrowing capacity. If the investigation identifies a low or medium risk, NHG does not impose the same additional requirement to account for foundation repair costs.
Where no preliminary investigation has been carried out, the buyer will generally need to arrange one or the lender can account for the estimated repair costs directly, in line with the NHG rules.
The changes do not automatically prevent buyers from obtaining a mortgage on a property with foundation problems. However, the amount they can borrow may be lower if expected repair costs reduce their available financial capacity.
The requirements apply to binding mortgage offers issued from 1 January 2027. Applications with offers issued before that date remain subject to the existing rules.
Foundation damage poses a growing financial risk
Foundation problems have become a significant concern in the Dutch housing market because repairs can cost tens of thousands of euros and may be difficult for homeowners to finance.
Damage can be associated with factors including falling groundwater levels, drought, soil conditions and construction activity. Problems may not always be apparent when a buyer views a property, making reliable inspections and risk information particularly important before a purchase.
In April 2026, the Dutch Authority for the Financial Markets (AFM) published research highlighting the financial vulnerability of homeowners facing foundation repairs.
The regulator estimated that more than 120,000 homeowners had foundation problems serious enough to require repairs, representing an estimated repair task of €11 billion.
The AFM also found that more than 75,000 affected homeowners could not immediately pay the repair costs from their available financial resources. For more than 25,000 owners, taking out a loan to cover the work did not appear to be a financially responsible option.
These findings illustrate why foundation damage is not simply a maintenance issue. For some households, it can become a substantial financial burden affecting their ability to maintain, sell or continue living in their homes.
Source: Dutch Authority for the Financial Markets (AFM).
What the changes mean for homebuyers
The new rules are designed to make the potential costs of foundation problems more visible before a mortgage is agreed.
Previously, buyers could face the risk of discovering serious foundation damage after completing a purchase, leaving them responsible for repairs they might struggle to afford.
Under the revised NHG framework, a high-risk assessment and the estimated cost of repairs can influence the mortgage calculation before the buyer commits to the property.
This could mean a buyer has to borrow less, contribute more money from personal savings, negotiate the purchase price or reconsider the purchase.
The precise effect will depend on the property’s assessment, the estimated repair costs and the buyer’s financial circumstances. A high foundation risk does not automatically mean a property cannot be purchased with an NHG-backed mortgage.
The assessment is intended to provide a clearer picture of the total financial commitment involved in buying the home, rather than focusing solely on the mortgage repayments.
What is the National Mortgage Guarantee?
The National Mortgage Guarantee, known in the Netherlands as Nationale Hypotheek Garantie, provides a form of financial protection for eligible homeowners who experience certain circumstances that make it difficult to meet their mortgage obligations.
The scheme can also help buyers access lower mortgage interest rates, although the rate offered depends on the lender and the individual mortgage.
The foundation risk changes extend the scheme’s focus on responsible borrowing by requiring lenders to consider potential repair costs where a property is confirmed to have a high foundation risk.
The NHG guarantee limit is also scheduled to rise to €500,000 in 2027, subject to the scheme’s eligibility conditions. However, a higher guarantee limit does not mean every buyer can borrow that amount: lenders must still assess affordability and the property’s circumstances.
Why more action may be needed
NHG says that better information and consistent risk assessments can help buyers make more informed decisions, but the mortgage changes alone will not resolve the Netherlands’ foundation problems.
The AFM has also called for earlier identification of risks, clearer property-specific information and better access to responsible financing for necessary repairs.
For homeowners who cannot afford foundation work, the challenge extends beyond identifying the damage. They may need financial assistance or other solutions to prevent repairs from being delayed and costs from increasing.
The new mortgage rules are therefore one part of a wider effort to address the financial consequences of foundation damage.
For prospective buyers, the practical message is to check the foundation risk assessment, understand whether further investigation is required and establish the potential repair costs before committing to a property.
Sources: National Mortgage Guarantee (NHG) and Dutch Authority for the Financial Markets (AFM).
