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PROPERTY

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

Is getting a mortgage for foreign residents in Norway a breeze, or are there plenty of hoops to jump through? Here's what you need to know. 

Published: 8 October 2021 15:28 CEST
Updated: 29 July 2022 14:47 CEST
Ever wondered how straightforward it is for a foreigner to get a mortgage. Pictured is a typical Norwegian coastal house with a cruise ship sailing past in the background
Ever wondered how straightforward it is for a foreigner to get a mortgage. Pictured is a typical Norwegian coastal house with a cruise ship sailing past in the background. Photo by Vidar Nordli-Mathisen on Unsplash

The first step towards buying a home in Norway begins with a mortgage application, but how much red tape is there for foreign residents when it comes to securing a loan? 

One of the first things you’ll need to know is that there are no rules that prevent foreigners from owning or buying property in Norway, so you’re all set to begin the hunt for your dream home in that regard. 

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

Municipal startup loans are also an option for those struggling to get a mortgage from a typical bank. You can read more about municipal startup loans here. How municipal loans are granted will depend on the practices of the local authority in question. 

READ ALSO: Is it better to buy or rent property 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 read more about property in Norway, ranging from a guide to buying in Oslo to whether or not solar panels are worth investing in, click here. 

What paperwork will I need? 

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

This could be one of the main stumbling blocks for foreign residents new to Norway. 

Another hurdle could be a lack of credit history in Norway if you have been in the country for less than a year, sometimes longer. The lack of credit history, which doesn’t carry over from the country you came from, could hold up the process or prevent you from getting a mortgage entirely. 

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

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

How much can I borrow

Generally speaking, you’ll be able to borrow either three times your annual income or up to 85 percent of the price of the property. Top-up loans are an option for those unable to put down 15 percent upfront. 

Furthermore, 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 duration of the mortgage. 

The repayment period in Norway is typically between 20 to 30 years. You can check out and compare mortgage providers here. 

It’s worth being aware that mortgage rates are rising in Norway after being set to zero throughout the pandemic. This means you should expect the interest rates to increase and the repayments to become more expensive for the first few years after taking out your mortgage. Therefore, you should try and factor the increasing repayment costs into your budget if you can. 

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

Another thing worth highlighting is that you should receive the all-important official mortgage approval document once your application has been approved. You will need this to purchase a house in Norway.  

Vocab

  • Visninger- Viewing
  • Boligån- Mortgage
  • Nybygg- New build 
  • Eiendomspriser- Real estate prices
  • Budrunde- Bidding process
  • Selvangivelse – tax assessment
  • Bolig konto– house account
  • Gjennomsnittspris – average price

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PROPERTY

The key things you need to know about purchasing property in rural Norway 

Whether it's time to up sticks and get away from Norway's cities, or you've always dreamed of owning a holiday home in the country's stunning rural areas, there is some key info you need to know. 

Published: 26 April 2024 15:21 CEST
The key things you need to know about purchasing property in rural Norway 

This article was based on several questions from a reader. The Local Norway aims to answer readers’ questions, even if it isn’t used for an article. So if there’s something you’ve wondered whether it’s practical or cultural, you can drop us a line at [email protected] 

It’s no surprise that Norway’s countryside attracts so many admiring glances from across the world as, depending on where you end up, you could be within an hour’s drive of fjords, mountains, and forests. 

The prices explained 

The website Finn.no lists almost every property for sale in the country. After a few searches, it will quickly become apparent that homes in rural Norway seem like excellent value. 

Using figures from the property firm Krogsveen, the average cost of property per square metre in Oslo is 89,000 kroner, the national average is 50,674 kroner, and in Møre og Romsdal in western Norway, the average cost is much lower at 28,722 kroner. 

Møre og Romsdal is one of Norway’s more remote counties, home to stunning regions like Sunnmøre and Sunnfjord.

READ ALSO: How much does an apartment in Norway cost?

This illustrates how much more you can get for your money in rural parts of Norway compared to elsewhere.  

There are some reasons for the price differences. Firstly, some homes in rural areas require full-time residence. If you plan on moving full-time, this won’t be an issue. 

If you are after a holiday home, this will be a barrier. Prices are typically higher in areas that are popular with leisure property owners. 

Some of the cheaper homes will be “fixer uppers”, even if you want to keep the home’s original charm. Bathrooms, kitchens, plumbing and electrics can all be incredibly expensive. 

Furthermore, investing in these areas of the home is unlikely to directly increase the property’s value due to the low demand. 

Farms should be avoided 

The charm of a Norwegian farm is difficult to avoid, lots of room, a large welcoming home and bright red farm buildings. 

However, these buildings are worth avoiding unless you intend to use the property for farming. 

Rules on the ownership of agricultural properties date back more than 1,000 years, and there are a few key things to be aware of. 

Firstly, you will need to live on the property full-time and typically use it for its intended purpose: farming. You will also need to apply for a license to own the property. This is part of a government act to protect agricultural land. Then, there are a number of special rules to ensure that some farms remain in a family line. 

Farming in Norway isn’t a particularly profitable venture either, so taking over a farm may not be as attractive once all the rules are laid out. 

The rules for foreigners buying rural properties 

Norway’s property market has no restrictions on whether foreigners can buy property. 

This means you can buy a property in Norway’s stunning rural regions. However, there are several practical obstacles. 

Most practical issues don’t apply to full-time residents. 

However, non-residents can’t get a Norwegian mortgage as they have ties and income to the country. 

Furthermore, not having an electronic ID and identity number will make it quite difficult to put in bids on homes, set up utility bills for the property, and get a bank account to pay these bills. 

If you manage to purchase a place, you can obtain a D-number from the Norwegian Tax Administration to try to open bank accounts and pay bills. 

Other practical info

For starters, you will likely need access to a car if you buy a place in the countryside. 

Owning a car will be crucial for reaching amenities, and depending on how remote you choose to go, you could end up a 30-minute drive away or need a car suitable for tackling difficult terrain to reach main roads. 

You’ll also depend on a car to get to and from work and to ferry kids to school and back. 

Houses in rural areas may also have much more expensive running costs. Older, larger properties are notorious for sky-high energy bills in the winter. 

Of course, finding a suitable job to match your career ambitions can be much more difficult in rural areas than in the bigger cities. 

READ MORE: The downsides of life in the Norwegian mountains you should know about

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