How to finance home buying in Norway?

Almost 80% of Norwegian families own their own home.  Or maybe we should say, their bank owns it. But most Norwegian do not worry about their debt ratio.  Maybe because we have a solid bank system and regulation regarding how big mortgage the bank can give people according to equity and monthly income.

In general, the bank requires 15% of the sales value in equity, you cannot have a mortgage that exceeds 5 times the family income.  And you have to be able to pay an increase in interest with 5%.  This is public regulations from the government that the banks have to follow.   This is difficult to fulfil for some first-time buyers.  Therefore 50% of them get help from their parents to meet the banks requirements.

What about foreigners or non-Norwegian citizens, will they be able to get a mortgage in Norway?

The answer is yes, on certain conditions.

Normally the bank will require 25% of the sales value as equity.
You have to have a Norwegian D-number or identification number. https://www.udi.no/en/word-definitions/d-number/

With a D-number you can apply for a bank account in Norway, which you will need.
But you are free to apply for a loan in different banks.

The banks requires that you are employed in Norway, or get your salary paid through a Norwegian bank account.  Income abroad is not sufficient.

Regarding your equity you probably have to transfer them to your Norwegian bank, or at least give a proof that you have the funds in your bank at home.
When you transfer money you have to give an account of the origin of the funds.  Due to money laundry regulations.

Much easier to buy a home, if you already have the cash 

If you don’t need a mortgage to buy a property you will get the D-number after the purchase, from the Norwegian Mapping Authority (property Register).  The money will go through a bank in Norway to the real estate agency, who will take care of the registration and send the D-number application.  In that process you have to give an account of the origin of the funds, due to money laundry regulations.

This is what I know about financing rules for foreigners. If you contact me can help you to get in contact with the right banking people to answer your more detailed questions.

6 Comments

Ricardo Benicio

Hi,
I follow your posts and believe you do a great job. Thank you for the insights.
I have more questions about the topic and would be great to ask to the banking people you’ve mentioned above.
All thebest, Ricardo

Reply
Wrya

If a foreigner who buys a property without getting mortgage from a Norwegian bank he will receive a D-number. How about the case when the buyer is not present in Norway? Can he/she use this D-number to travel to Norway or get a temporary residence permit?

Reply
trudet

No this is not connected. This D number is only for use to register the ownership of the property in the property register.
Called Kartverket.
D number for resident permit has to be approved by other authorities as the tax office, immigration etc
Trude Boligdama

Reply
Enzo

Hi there, I´m working home office for a foreign company from Norway, I do not have an income from a norwegian company. Do you believe that 60% of equity would make a bank accept my mortgage? Do you know any solution for this? Thanks!

Reply
trudet

I do not think this works, as far as I know you have to have your salary through a norwegian Bank at least. You need D-number , norwegian bank account to get a mortgage in Norway.

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