NHG: A Dutch Loan Guarantee Program That Is Both Socially Supportive and Credit Positive

Governments in economies across the globe have historically provided some degree of support for housing markets. In the Netherlands, the government has established a scheme, Nationale Hypotheek Garantie, whereby an established government guaranteed fund, Stichting Waarborgfonds Eigen Woningen, provides a guarantee on mortgage loans meeting certain criteria. The result is a lower cost of borrowing and lower risks for lenders should borrowers default.