How much do you need to earn to get a home loan in Norway
How much do I need to earn to get a home loan in Norway? Statistics provided by the housing group OBOS (housing association) shed some light on this issue. It is clear from them that for a 3-room apartment of 70 sqm you have to pay an average of NOK 4.2 million, or 60 thousand. NOK for every square meter.
Average house prices in Norway
This information applies to properties managed by OBOS. It is worth noting that these are average prices. That is, in their offer you can find apartments worth less, but also more. This means that a lot of people earning an average national average of 530,000 people are in the uk. Nok per year can forget about buying an average apartment belonging to OBOS.
Rules for granting a mortgage
It is necessary to take account of the generally accepted rules for granting a mortgage in Norway. According to them, the maximum debt may not exceed five times the annual gross income. In theory, therefore, a single person earning the national average can count on a loan of 2 million 650 thousand euro. Nok. At best, therefore, he can count on the purchase of an apartment of 40 sqm, taking into account the average value of the apartment in the OBOS offer.
Apartments in Oslo are the most expensive
As Elin Reitan, an economist at Nordea, points out, this situation creates great difficulties especially for young couples who want to buy their first apartment. In a particularly difficult situation there are couples who want to buy their accommodation in the center of Oslo. In the Norwegian capital, the average house price is just under NOK 5 million, or more precisely, NOK 4 968 208. This is according to statistics made available by Eiendom Norge, a real estate organisation.
One million kronor of income for housing in Oslo
Even a family with an average income of 800,000 euros will not be able to afford to live in Oslo. NOK per year. This would in practice mean that you would need to get a loan of more than six times your annual earnings. In order for them to afford an average apartment in the Norwegian capital, their total income would have to be 845 thousand. Nok per year, i.e. each borrower would have to earn about 10% of the total. 422.5k NOK per year. This makes it necessary to collect a salary in excess of EUR 35 000. NOK per month gross.