How much do you have to earn to get a mortgage in Norway-earnings?
Many people dream of living in Norway. Unfortunately, taking into account the latest statistics recently presented by OBOS, not everyone can afford even an average apartment in Oslo. OBOS research
According to the latest statistics presented by OBOS, which is the largest Norwegian company dealing in residential construction, single people have very little chance of buying their own four walls. Apartment prices they are terrifying. The average price per square meter of apartments managed by OBOS is approx 60.000 koron. When you convert quickly, it turns out that 3-room flat of Fr. area of 60 m2 costs PLN 3,6 millions NOK. Who can afford one today mortgage?
Being single doesn't give us much of a chance
In Norway the average annual income per person is approximately CZK 530.000. Award rules mortgage loans are strongly sharpened. One of the regulations concerns the maximum loan amount. The maximum amount of our debt cannot exceed five times our annual income. Taking into account the average earnings and apartment prices presented by OBOS, a single person has no chance of obtaining a mortgage loan. In such a situation, she should have her own capital, get support from third parties or lower her requirements by reducing the square footage of the apartment.
Read also: What else you need to know about the loan
Mortgage loan in Norway - earnings. Oslo is a rather distant dream
Oslo, as befits the capital, is very characterized high housing prices. At the beginning of a new year, many industries reflect on the past year. So she did an industry organization dealing with the market real estate. Eiendom Norge, which presented the statistics housing prices in Oslo to the end 2018 year. The prices are breathtaking. It turns out that the average price of an apartment in Oslo is around 5 million crowns! If we were to go back to one of the mortgage granting regulations, which applies to the maximum amount for long, then a family with annual earnings of CZK 800.000, will have many difficulties buying an apartment in Oslo.
Is it easier in other cities?
We already know the prices of apartments in Oslo and in other large cities Norway it's the same? There is no denying that in other parts of the country it is a bit easier. However, Bergen, Trondheim, or Stavanger these are still cities where housing prices reach six times our average income. However, if we are focused on living in the capital. Then with Present in several = 15% with our own contribution, we can afford a flat with an average annual income of 845 thousand crowns.
Mortgage loan in Norway - earnings. Take a mortgage it's not everything
It turns out that even if today our annual income allows us to take out a mortgage loan. If the debt turns out to be in the future, we may have very big problems with repaying it. Each of us must remember that a loan involves a lot of side costs such such as commission, insurance, interest. The latter may change, and the bank needs to be sure. That even with growth interest rates o 5 points we'll be able to pay off the mortgage. According to current research, it turns out that as much as Present in several = 22% Norwegians will have trouble paying off their mortgage in the future.
Where to start?
Regardless of your needs, Aneta Musiał will help you find the right loan. Aneta has been working as a senior advisor since 2013 financial at Eiendomsfinans. Eiendomsfinans has been operating in Norway since 1993 and thanks to agreements signed with many banks, their services are completely free - they receive remuneration directly from the banks.
