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.

But there is a catch to it all, it is not straight forward to open a bank account in a Norwegian bank.
Read more about this in this article:
Is it possible to bid on a property in Norway without having an account with a Norwegian bank?

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.

Please contact me if you have further questions on this issue.

Best regards
Boligdama – Trude Larsen

+47 950 37 330 – trude@boligdama.no

22 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.

Reply
mrkddr

We tried Obos, DNB and Husbanken. 400.000 NOK cash, 1 employed in Norway company (40.000 NOK monthly salary), the other enkeltpersonforetak (low income). All applications were refused. There is a hole in the system, or both people has an medium or high income, or you are in a desperate situation (with kids). The rest of us: nothing, keep saving until you buy cash.

Reply
trudet

Hi
Sorry to hear about that. Do you have equity ? If you want you can send me an e mail or call me. And I can try to help you through my bank contact in BN Bank.
But I have to know more about your situation first. So please contact me.

trude@boligdama.no – or 950 37 330

Reply
Merydel

Hi

Me and my husband is planning to buy a house, we need to sell our property from abroad in order to pay for the equity here, how can we transfer the money here in Norway? Is there any tax or fees?or do I need to contact my Norwegian bank?

Thank you.

Reply
trudet

If you have a Norwegian Bank account you have to transfer the money there to prove the equity. I do not think there are any fees, but you have to fill out some forms due to the money laundry laws. To prove that is not “dirty money”. The bank will inform and give you these.

Reply
etp_oslo

How does it work when moving the money for the deposit from abroad to Norway? Note- I have a P-number, Norwegian Salary, etc.
When I lived in the UK, I knew with a gift letter this was possible.

Reply
trudet

Hi
I am not sure if I understand your question fully. You mean D- number ? To get a mortgage in Norway for a home you have to move the equity to your Norwegian bank account. The bank will ask you some question, fill in some forms because of the money laundry laws. You have to inform about where the money come from and show that they are legally earned. I do not know if that was answer to your question, but I hope so.

Best regards
Boligdama – Trude Larsen trude@boligdama.no

Reply
O. van Geest

We just figured you can only apply for mortgage with a F number and not a D number. But to get a F number you need to have a permanent residence in Norway. So you either need to fully finance the house you buy or start renting.
If anyone can direct me to a organisation who can provide a mortgage with a D number it is much appreciated.

Reply
trudet

Hi
A D-number should be enough in any bank. But they also have other requirements – that you are employed in Norway or Norwegian company paid out your salary to a Norwegian bank account Norway. To get a bank account in Norway you need D-number.

Best regards Trude – Boligdama – contact me if I did not understand your question corret. trude@boligdama.no

Reply
Malena

Hi, I and my husband are permanent employed. We don’t have any cash but we would like to buying a house. This is our first house in Norway. I would appreciate it if you could let me know how is the proceed for a mortgage?

Reply
trudet

You need equity to get a mortgage. At least 15% of the purchase amount. Some banks want 20% from foreigners. Then you need to be employed i Norway and get your salary on a Norwegian Bank account. And have a D-number.

Reply
James

Hello, is it possible for a UK resident earning in the UK to get a Norwegian mortgage to buy a property in Norway? Particularly the 100% first time buy deals, as no property currently owned in Norway.

Reply
trudet

You have to have your salary paid out in Norway, a D-number and 25% equity. As described in the blog article.

Reply
vpk

Hi , while showing the equity can we include the money from a depositum konto (deposit of our current rental place).

Reply
trudet

That depends on your bank. Your bank contact have to confirm that these money is availeable as equity. But they will probably not do that. This is your money but also the landlords money if you for example do some damages in the rental apt he can take money from the depositum konto. So maybe not. Talk to your bank about it is my advice.
Trude

Reply
Catherine

Hi Trude, interesting blogpost. I am Dutch and husband is Norsk. We have sold our house in The Netherlands. We have 3000.000 NOK cash on our Norwegian bank account. We do not need a car, we have one small child. We are both self employed, together a total income of 500.000 NOK. We both have a D-nummer and my husband is long time customer at Sparebank 1.

We need a very small house loan. We have more than 30% of the sales value as equity. , but we are quite surprised that our application was refused at Sparebank 1. Application was also refused at Sparebanken øst and Himla.

Reply
trudet

Is your amount in the bank 300.000 ?
Did you get a reason for the refusal?
You should be able to get a loan of 2 mill with 300.000 in equity and min income 340.000. Some deduction because of child.
So I cannot answer you why – maybe you can send me an e mail with your information and I can check with a bank contact. trude@boligdama.no

Reply

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