February 21, 2024


The business lovers

How To Get A Mortgage In Norway?

Buying A House In Norway: Here's How To Buy A House In Norway

If you have a job in Norway and have been a nation resident for a while, you can pursue your personal goals there, such as buying an apartment, a house, or starting a business. But financial resources are required for this. Mortgage loans are a common source of financing in Norway. A mortgage on the property guarantees the loan. You can only borrow a specific amount based on your credit history, job stability, and annual income.  So, do you want to Refurbish an existing home or purchase an investment property in Norway? And is it easy to get a mortgage, or are there a lot of hurdles to jump through? Below is the information you require based on Norwegian online reviews to gain complete insight.

Prerequisites To Fulfill Meet Mortgage Qualifications

It is possible to borrow up to 85% of the total project cost as a personal mortgage. The remaining 15% of the balance is due with your initial deposit. Here are some conditions to qualify for loans in Norway.

Basic Requirement

Norway requires that you have a permanent personal number, live in Norway, and be over 23 years old to apply for a mortgage. A one-year full-time employment requirement applies.

Annual Income

You must have a suitable annual income of at least NOK 220,000 gross (you can qualify for a consumer’s loan if you receive a work assessment allowance (AAP) or sickness benefit). The bank will determine if you can afford the required 15% down payment.

Debt Details

Banks and other Norwegian finance companies have systems to record a customer’s creditworthiness. Among other things, the reports detail past-year earnings and current debt collections. It’s a good idea to check your standing in these systems before applying for a loan to ensure the information is accurate and, if necessary, to fill in any blanks.

Repayment Capacity

Under Section 3 of the Norwegian mortgage regulations, the Housing Bank evaluates your capacity to repay the loan by considering how you would react to a rise in the interest rate of five percentage points. This provision is included in the regulations. In addition, it establishes how much money you are eligible to borrow by taking into account your income, debt, housing, household expenses, and shared costs. The maximum time allowed for repayment is thirty years.

Employment Verification

Banks check a buyer’s pay stubs and call the employer to verify employment and salary.

Self-employed buyers provide additional information such as the borrower’s income stability, the location and nature of the business, and the business’s financial strength and ability to continue generating and distributing sufficient income to pay the mortgage.

Final Thoughts 

Scandinavian property costs are higher than elsewhere, so taking out loans in Norway to finance a purchase is standard.  Obtaining a mortgage in Norway requires visits to multiple banks. Securing a mortgage is an essential step in buying a home. Carefully consider your options. Thirty years is a long time to be in debt. In addition, different financial institutions use varying criteria to determine your creditworthiness and may have additional terms available to you.