Betjeningsevne (ability to service the loan)

Betjeningsevne is whether you can keep paying interest and instalments on your loan even when money gets tight. It is the gate the bank uses to decide how much you can borrow. The bank assumes the rate can rise 3 percentage points above today’s level, and at least 7 percent regardless, while your total debt cannot exceed five times gross annual income (gjeldsgrad). If your budget has room for both, with enough left for ordinary living costs, you have betjeningsevne. Ask the bank for a finansieringsbevis early, and size the monthly cost using the stressrente, not today’s rate.