Guidance to Real Estate Market | How to Finance Home Buying in Norway?

The Best Mortgage Brokers in Norway can help you Finance Your Home Buying journey. Learn more about how the housing market in Norway looks like.

The Norwegian economy is amongst the strongest in the world. With a state pension fund valued at roughly $1.3 trillion, it's no surprise that more and more expats are interested in living in Norway. As you search for the perfect property in Norway, it is good to use as well as guidance of local mortgage brokers with a network of banks and know-how. They'll help you find your dream home and secure a mortgage. If you're an expat looking to purchase property, they'll help you compile the proper documentation so you can apply for a Home Mortgage Loan — BOLIGLÅN.

This helpful guide walks you through the process needed to finance housing in Norway.

Find a Bank and Secure a Mortgage

When looking to finance a home in Norway, you'll have several property options to choose from. This includes Standalone Houses — ENEBOLIG, Semi-Detached Homes — TOMANNSBOLIG, Row Houses — REKKEHUS, and Apartments/Shared Houses — LEILIGHET. Norway also features Multi-unit dwellings — BYGÅRD and Bungalow — ETT-ETASJES HUS. As you decide on the best type of property to purchase, you'll need to meet with your financial institution to discuss the mortgage size you'll qualify for.

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Mortgage Advisor or Brokers will help you prepare the necessary documents needed when applying for a mortgage in Norway. The majority of private Norwegian banks offer mortgages, with repayment periods ranging from 20 to 30 years. On average, you can borrow upwards of 85% of the price of the property. You may also be able to borrow five times your income annually.

Municipal start-up loans

Even if you're a new homeowner, you can still apply for a first-time mortgage. You'll find the same interest rate and can request to borrow 100% of the price of the home from The Norwegian State Housing Bank — HUSBANKEN. Municipal start-up loans help people who have long-term problems with getting a mortgage from a normal bank to buy or make adaptations to their own home. In some cases the municipality may provide a grant as well as the start-up loan. Municipal start-up loans are for people who cannot get a mortgage from a normal bank and are unable to save up for a deposit.

Should you find yourself struggling to secure a bank loan, you have the option of applying with your municipality for a start loan. Every municipality has its own set of policies and rules regarding these loans, determining who'll get the loan and for how much. It's advisable to apply for this type of loan before starting your house search, so you know what your budget is.

Documents Required

When you apply for a mortgage in the bank, you'll need to deliver various documents with you. This includes Tax Returns — SKATTEMELDING and any Payslips or Annual Accounting Scheme if you are Self-employ to prove your income level. Before the bank approves you for a mortgage, you can expect upwards of two weeks to receive your official mortgage approval. You'll need this document to purchase a property in Norway. You'll also need a local Tax Number — PERSONNUMMER or D number. D numbers are assigned to any foreign nationals that don't hold Norwegian national identity numbers. It serves as identification to Norwegian authorities.

Find a Finance Advisor or Bank Broker

Next, you'll need the help of Mortgage Brokers for an Expat in Norway. You'll also need a Professional Advisor or Agent — INVESTERING OG FINANSRÅDGIVER who understands Norwegian rules and is comfortable closing on real estate without an attorney. They handle the financial settlement and work with the state registry to register your deed transfer — SKJØTE.

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Once you find a good advisor you're comfortable working with, you'll begin your search for property. You should attend open houses to get a feel for each home, and you'll usually find they're scheduled at a convenient time.
This included nights and weekends. Discuss with your realtor the area you're searching for property in and the type of home you're looking for.

Review the Prospectus and Place a Bid

After viewing several properties, you may find one you're ready to place a bid on. However, you first need to review the prospectus. A prospectus provides pertinent information regarding an offering of securities. This written document is provided by the company issuing the securities and any broker-dealers, operating as their primary sales tool. A prospectus helps you learn more about the property's overall structure, the home's technical areas, and the surrounding neighbourhood.

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Once you review the prospectus, it's time to place a bid. The back of the prospectus commonly includes the bidding form. It's important to understand that any bids placed in Norway are legally binding. Should you change your mind for any reason, you may face very large fines.

Sales Contracts, Deeds, and Deposits

After you place a bid and it's accepted, your real estate agent's next responsibility is to create a sales contract for you and the seller to sign. Inside the contract is a detailed description of what happens if either party is in breach of contract. You and the seller both sign the sales contract and the deed is issued to you shortly after. However, the deed stays with your real estate agent until you complete all the necessary steps for BUYING A HOME IN NORWAY.

Register Your Property and Pay Your Dues

Your real estate agent will register your property with the land registry. The authorities will provide you with an official registry document that states you're the new owner of the property. Next, you'll pay your real estate agent along with stamp duty. This covers your property's registration. You also must pay the seller the balance for the house, which is where a home loan in Norway comes into play.

Expats and Non-Norwegian Citizens

Expats and non-Norwegian citizens can still secure a Norwegian mortgage, albeit conditionally.

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The lending bank usually requires you to provide equity equal to 25% of the property's sales value. You'll also need your Norwegian ID number PERSONNUMMER or D number, as mentioned above. Your Tax Number allows you to apply for a Norwegian bank account. Next, you must prove you have sufficient Norwegian employment or show proof of a salary paid via a bank account in Norway. Income earned abroad does not provide sufficient source proof of funds.

Best Local Mortgage Brokers in Norway

Once you decide to purchase property, you'll need the best local mortgage brokers in Norway. They'll help you as you look for property and apply for a loan. If you're an expat looking to purchase property in Norway, your mortgage broker will be well-versed in the requirements needed to secure a mortgage.

LOCALMARKET.no compares multiple offers from a variety of products and services. This includes Mortgage Brokers Service, Real Estate Agents, Legal Services, and more. Contact us today to see how we can help you when applying for mortgage loans in Norway.