Kausjonist (guarantor)

A kausjonist provides security for your loan. With realkausjon a charge is placed on the guarantor’s own home, most often the parents’, giving the bank extra cover. The guarantee can replace the equity you lack and eases the 10 percent equity requirement (belåningsgrad). The betjeningsevne requirement still stands: the bank must test that you yourself can handle a 3 percentage point rate rise. So a guarantee eases the equity rule, while the stress test remains. Agree with the guarantor that the charge lasts until the loan is paid down or your home has risen enough in value for the guarantee to be released.