A mortgage loan in Norway is a good solution for people who live in the country of fjords and plan to settle here long-term. Renting property involves high costs, which is why it is worth considering home ownership, as in the long run it may prove significantly more financially beneficial. A mortgage loan for those working in Norway is a real opportunity to fulfil the dream of owning a home. Find out how to apply, what requirements you must meet, and what you can do if traditional banks refuse your application.
Home loan in Norway – what can you gain?
First of all, you gain your own property, where decisions are made only by you (and any co-owner). Monthly costs are often comparable to rent, and sometimes even lower. It is therefore no surprise that people living permanently in Norway consider taking out a mortgage.
Renting in Norway is not cheap and can significantly burden a household budget. In addition, renting involves limitations such as no freedom to modify the layout or design of the property and frequent relocations. If you see your future in Norway, it is worth considering buying your own property and checking your chances of obtaining a mortgage loan in Norway.
Types of housing loans in Norway
If you are applying for a mortgage loan in Norway, you should familiarise yourself with the available loan types and solutions.
Førstehjemslån – for a first home purchase
Førstehjemslån is a special type of housing loan offered by Norwegian banks for purchasing a first home without a down payment. You may apply if you have not previously owned residential property. A characteristic feature of this loan is fixed interest.
Startlån – start-up housing loan
Startlån is designed for people who have difficulty obtaining førstehjemslån. This loan can be used to build a new home or renovate an existing property. Financing may cover up to 80% of total costs, but the exact amount depends on the municipality. The property must meet energy efficiency and environmental requirements.
Grunnlån – basic housing loan
This loan is granted by Husbanken (The Norwegian Housing Bank). It may be used for building a new house or renovating an existing one. As with Startlån, the property must meet certain functionality and environmental standards. Financing may reach up to 80% of the property value.
Criteria for obtaining a mortgage loan in Norway
Requirements depend on the bank’s internal procedures, but generally you must:
- Provide a down payment of 15–25% of the property value
- Work full-time and earn income from employment
- Have a clean credit history
- Repay all financial obligations on time
If you have multiple debts, your chances of approval decrease. Norwegian lending regulations are strict. However, even if you receive a refusal the first time, it may be worth trying again, as much depends on the advisor’s assessment.
Mortgage loan in Norway when banks say “no”
It happens that despite meeting many requirements, obtaining a loan from a traditional bank is not possible. Even if you have sufficient savings for a down payment, relatively high income, and acceptable creditworthiness, your application may still be rejected. This may occur if you have inkasso, betalingsanmerkninger or many financial obligations. People working part-time, retirees, or individuals with disabilities may also face difficulties.
However, a refusal from a traditional bank does not mean you must give up on your dream of owning property in Norway. Fortunately, there are alternative institutions that assess each client’s financial situation individually. The loan application is evaluated based on current repayment capacity rather than solely on past credit history, which increases your chances.
Mortgage loan in Norway with our assistance
Even if you work part-time, are self-employed, or have inkasso or betalingsanmerkninger, you may still successfully go through the home loan process in Norway. You may borrow up to 85% of the property value, as banks typically require a 15% down payment. If you have not saved enough, you may apply in your municipality for a low-interest loan to cover the down payment.
The repayment period may extend up to 30 years, and interest rates range between 5.85% and 10.35%. After some time, you may apply for refinancing and transfer your mortgage to a bank offering better conditions.
Spesiallån – an option for clients with an existing mortgage
If you already have a mortgage loan in Norway and other financial obligations, debt refinancing may be a good solution. You can combine all your debts (including consumer loans, car loans or credit cards) into one and transfer them to another bank. Interest rates range between 3.99% and 14%, with repayment periods up to 30 years.
Requirements include:
- Owning property in Norway
- Property value exceeding NOK 750,000
- Annual income of at least NOK 250,000
- Living or paying taxes in Norway for the past 3 years
Property-secured loan (mortgage-backed refinancing)
This is another refinancing option for those with an existing mortgage. In this case, all obligations are consolidated but remain in the same bank. Interest rates range between 4.99% and 10.99%, with repayment up to 30 years. Clients with inkasso are not eligible.
Need advice? We are here for you!
We are here to answer all your questions, guide you through the entire mortgage loan in Norway process, and find the most suitable offer for your financial and personal situation. Our services are completely free and without obligation. Our credit advisors have been working in finance since 1985. We understand that a mortgage loan in Norway is a serious commitment, which is why we ensure professional and clear communication at every stage.
