Property prices on the fjords are skyrocketing every year. However, buying your own home is still a viable long-term investment as the monthly instalment will in most cases be the same or even lower than the price of renting. Find out what you need to do to get a loan for housing in Norway.

Loan for housing in Norway = mortgage

A loan for housing in Norway is a loan against a mortgage. In other words, a mortgage means that you take money plus interest from the bank (the loan), and the guarantee for the bank to get the money back is that you pledge your property, e.g. your house, flat or land.

A mortgage is usually seen as a loan to buy a house. In this case, the pledge is the flat or house purchased with the money received from the bank. However, this is only one, albeit the most common, type of mortgage.

More about mortgages

Mortgage loan in Norway – how much do you need to earn?

It is worth remembering that, in principle, each bank may apply different income requirements. A lot also depends on the credit advisor himself, whose work largely determines the final decision you will receive from the bank. Despite these dependencies, you will most often encounter an income criterion according to which the value of the property cannot exceed five times your annual earnings.


Loan for housing in Norway – basic requirements

Single people have it harder

Taking into account the required earnings, it is clear that single people have it harder when it comes to buying their own flat. The reason for this is simple – if a couple in an official relationship applies for a loan, the bank will take into account their combined annual salary. It will therefore be easier for two people to earn, for example, 800,000 Norwegian kroner, than for a single person.

We can help you realise your dream of owning your own home!

Getting a mortage 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!