How easy is it to get a mortgage in Norway as a foreign resident?

How easy is it to get a mortgage in Norway

The first step to buying a home in Norway starts with applying for a mortgage, but what’s the paperwork for foreign residents when it comes to getting a loan?

One of the first things you need to know is that there are no rules preventing foreigners from owning or buying property in Norway, so you are ready to start looking for your dream home in this regard.

You can apply for a mortgage from most traditional banks in Norway. In addition, there is also the Norwegian National Housing Bank, Husbank, which provides grants for building new houses and renovating properties.

Municipal start-up loans are also an option for those who have difficulty securing a mortgage from a typical bank. You can read more about municipal start-up loans here. The modalities of granting municipal loans will depend on the practices of the local authority in question.

READ ALSO: Is it better to buy or rent real estate in Norway?

Once you’ve found your provider, it’s time to sit down with them and discuss the mortgage itself.

If you want to learn more about real estate in Norway, from a guide to buying in Oslo to whether or not solar panels are worth investing, click here.

What papers will I need?

The documents you need vary, but generally you will need your financial records, such as payslips, as proof of your income. In addition, the bank may also ask you for your tax records. You will also need a Norwegian identification number, such as a D or Personummer number. You will not be able to secure a mortgage or buy a property without the ID number.

This could be one of the main stumbling blocks for foreign residents newly arrived in Norway.

Another obstacle could be a lack of credit history in Norway if you’ve been in the country for less than a year, sometimes longer. Lack of credit history, which does not apply to the country you are from, could delay the process or prevent you from fully obtaining a mortgage.

For those who have lived in Norway for a while, obtaining a mortgage should be straightforward as banks will already have an identification number and credit history.

If you are applying for a loan from a Norwegian partner, it may be possible to get a home loan without too much of a credit history in Norway, but this will come at the cost of higher rates.

How much can i borrow

Typically, you will be able to borrow either three times your annual income or up to 85% of the price of the property. Top-up loans are an option for those who are unable to pay 15% upfront.

Additionally, first-time buyers can apply for a special mortgage where you can borrow 100 percent of the purchase price, and the interest rate will be fixed for the term of the mortgage.

The repayment period in Norway is usually between 20 and 30 years. You can view and compare mortgage providers here.

It should be noted that mortgage rates are increasing in Norway after being set at zero throughout the pandemic. This means that you should expect interest rates to rise and repayments to become more expensive for the first few years after taking out your mortgage. Therefore, you should try to factor the increased reimbursement costs into your budget if you can.

READ MORE: Norwegian lenders raise interest rates after central bank hike

Another thing to point out is that you should receive the very important official mortgage approval document once your application has been approved. You will need it to buy a house in Norway.


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