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.
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
Thank you , I will reply on e mail
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?
No this is not connected. This D number is only for use to register the ownership of the property in the property register.
D number for resident permit has to be approved by other authorities as the tax office, immigration etc
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!
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.
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.
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.
email@example.com – or 950 37 330
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.
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.
Boligdama – Trude Larsen firstname.lastname@example.org
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.
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. email@example.com
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?
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.