Siv Jensen is tightening mortgage requirements in Oslo

Apartment for rentApartment.Photo: pixabay.com

Government introduces stricter capital requirements for the purchase of secondary housing in Oslo.

In addition the government introduced a requirement that no one will lend more than five times the income.

After the new regulation, the equity requirement increases to 40 percent in the capital.
In the rest of the country continued requirement of 15 percent equity, also for secondary residences.

The goal is to lower prices for those who establish themselves for the first time.
– Buyers of secondary housing can drive up prices for other buyers.

Stricter equity requirements for purchase of secondary housing in Oslo can therefore limit speculation and provide less pressure in the bidding process for young people and families to establish themselves in their first home, says Minister of Finance Siv Jensen.

Borrowing Limit

The government also introduces a new provision stating that the customer’s overall loan shall not exceed five times gross income. The conditions of interest-only mortgages are also tightened somewhat.

– The requirement of maximum loan-to-income ratio will give an additional assurance that banks’ assessment of customer servicing not be stretched too far, according to a press release from the Ministry of Finance.

 

Source: NTB scanpix / Norway Today

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