Can I afford it? Norwegian lending rules and how much you can borrow (2026)

In Norway, three rules set your ceiling at once: you can borrow at most 5 times your gross yearly income, you need at least 10 % equity (so a maximum loan of 90 % of the price), and the bank must check that you could still pay if interest rates rose. Whichever limit is lowest decides your budget, and for most buyers that is the income rule. These limits come from the lending regulation (utlånsforskriften), which every bank must follow.

The three limits, side by side

Rule	What it means	Where it sits
Debt-to-income (gjeldsgrad)	Total debt at most 5x gross yearly income	§ 6
Loan-to-value (belåningsgrad)	Loan at most 90 % of price, so 10 % equity	§ 7
Stress test	You must cope with +3 percentage points, and at least 7 %	§ 5
Amortisation	Above 60 % loan-to-value, pay down at least 2.5 % a year	§ 9

1. The income rule (gjeldsgrad)

Your total debt counts here, not only the new mortgage. Car loans, student loans, credit cards and any consumer debt all add up. That sum may be at most five times your gross yearly income (income before tax).

So if your household earns 900 000 kr gross, your total debt ceiling is 4 500 000 kr. If you already carry 200 000 kr in other loans, the mortgage itself can be at most 4 300 000 kr.

2. The equity rule (egenkapital)

You need at least 10 % of the purchase price as your own money, so the loan can cover up to 90 %. This limit was eased on 31 December 2024, down from the old 15 % equity and 85 % loan ceiling. For a 4 000 000 kr home, 10 % equity is 400 000 kr.

A few things count as equity besides cash savings: a BSU account, money from a previous home sale, or a gift or private loan from family. For a credit line (a flexible loan, rammekreditt) the ceiling is lower, 60 % loan-to-value.

3. The stress test

The bank does not lend right up to the limit if your finances look tight after a rate rise. It tests whether you could still pay with interest 3 percentage points higher than today, and never lower than 7 %. With the average mortgage rate around 5.1 % in 2026, the test rate lands near 8 %. This is a check on your monthly room, not a separate cap on the loan size.

Why the income rule usually binds first

For most buyers in Norway, the 5x income rule runs out before the equity rule does. Equity is something you can build or receive as a gift, but the income ceiling is fixed by your salary and your existing debt. If you have saved a healthy deposit but earn an ordinary salary, you will often hit the 5x wall while you still have equity to spare.

This is why paying down a car loan or a consumer loan before you apply can raise your mortgage budget more than saving another 50 000 kr in cash.

Above 60 %: you must pay down the loan

If your loan is more than 60 % of the home’s value, the rules require you to repay at least 2.5 % of the loan each year (or the same amount a 30-year repayment schedule would give, whichever is less). Below 60 % you may take an interest-only loan. This matters for your monthly cost: a high loan-to-value means a built-in amortisation payment on top of interest.

The flexibility quota

Banks may approve a share of loans that break one of these limits, often called the flexibility quota. It exists for sound borrowers who are just outside a rule. You cannot count on it, and it is the bank’s call, so plan your budget around the standard limits.

Get the financing certificate first

Before you bid, ask your bank for a financing certificate (finansieringsbevis). It is a written confirmation of how much the bank will lend you, valid for a set period. You need it ready before you take part in a bidding round (budrunde), because a bid in Norway is binding the moment you submit it. Bidding without knowing your ceiling is how people overcommit.

The certificate is usually given as a maximum total price, so remember that price is not the only cost. On a freehold home (selveier) you also pay document duty (dokumentavgift) of 2.5 % of the price, plus small registration fees. A co-op (borettslag) home is exempt from document duty, but its asking price sits on top of your share of the building’s joint debt (fellesgjeld), so always look at the total price.

A worked example

Say a couple earns 1 000 000 kr gross combined and has 500 000 kr saved with no other debt.

• Income rule: total debt up to 5 000 000 kr.
• Equity: 500 000 kr is 10 % of a 5 000 000 kr home.
• So the highest price they can target is roughly 5 000 000 kr, with a 4 500 000 kr loan.

Here both rules line up. Add a 300 000 kr car loan and the picture changes: the debt ceiling stays 5 000 000 kr, but 300 000 kr of it is already used, so the mortgage drops to 4 200 000 kr and the home budget falls with it.

Run your own numbers with your gross income and your existing debt before you start viewing homes. It keeps your search honest and your bidding calm.