When moving to Norway, you should bear in mind that renting a flat is slightly more expensive than a home loan. If you want to stay in the Fjords for a longer period, consider buying your own property. When deciding to buy your first home in Norway, there are a few key points to keep in mind.


First steps in Norway

Before you can think seriously about applying for a home loan, there are a few conditions you need to fulfil. The most important one is how long you have lived in Norway, or more precisely, how long you have registered your residence. It is worth knowing that Norway, as a member of the European Economic Area, provides greater freedom to residents of the EU who live in the Kingdom. They do not have to register their residence if they have been in Norway for no more than 3 months. The situation is slightly different in other cases.

If your stay in Norway exceeds 3 months but not more than 6 months, you must register your temporary residence. Permanent residence is a period of residence longer than 6 months. To register both types of residence you must enter your details at selfservice.udi.no, print out your registration confirmation and visit your nearest police station or Foreign Workers’ Service Centre.


Home loan in Norway and creditworthiness

After registering and living for some time, it is worth checking your creditworthiness in Norway. Long before you go to the bank. This is mainly to make sure that you can make a financial commitment to buy your first home. It is also important to remember that repeated rejections will have a negative effect on your credit rating.


Own contribution and start-up loan – startlån

First of all, you must prove that you are working legally in Norway. To do this, you must present a valid contract of employment and three recent pay stubs. In addition to this you must have savings of NOK 50,000 – this will increase your chances of getting Startlån from the municipality. It is important to note, however, that it is not easy to get credit for your own contribution. Municipalities mostly support low-income people who are unable to save for their own contribution and are therefore refused by banks when applying for a mortgage.


First home in Norway – home loan in Norway

It is worth remembering that when applying for a home loan in Norway, the advisers handling your case have a lot of influence. If a member of staff at one bank refuses to give you a loan, it is worth applying to another bank. It is possible that if you apply again at the same bank but at a different branch or with a different adviser, you may be approved for a loan and you will be given a loan. With this document, you can start looking for your first home in Norway.


Buy a house or flat in Norway?

Although houses are theoretically more expensive than flats, in practice they are less expensive to maintain. If you live in an apartment building, in addition to the costs associated with fees and charges, there is a so-called rent payment – the felleskostnader. These are costs associated with the use of common areas. If you wish to avoid this charge, you should try to obtain a higher loan and consider buying a house.


Buying is easier than taking out a home loan

Buying your own house or flat in Norway will not be difficult. This is mainly because there are plenty of properties for sale. Simply visit Finn.no, for example, to find a property that meets your requirements. As it turns out, the formalities involved in obtaining a home loan are much more difficult to carry out than the purchase itself.


Apply directly or through an adviser?

Getting a home loan in Norway usually involves visiting several banks. You can find out the best terms by contacting each bank separately. You should be aware that each institution may offer different conditions and calculate creditworthiness in different ways. Also, a lot depends on the bank advisor. However, this type of solution requires a lot of time, maximum commitment and patience.

A much more convenient way out of this situation is to take advantage of professional credit counselling. Lorentzen Consulting AS provides such services and has already helped many clients to get financing. We recommend that you contact us!