Banks say no to more loan applications

DNB services stress testDNB logo. Photo Norway Today Media.

After Finance Minister Siv Jensen introduced stricter rules for mortgages beginning of the year, more loan applicants were turned down by the banks.

Dagens Næringsliv has been in contact with a large number of banks confirming the trend. Banks have tightened their lending practices, and several of those who seek large mortgages are rejected.
In particular the requirement that one can not borrow more than five times the income is the cinch, says Director of Consumer Markets at Nordea Norway, John Sætre.
He says the bank is stricter towards housing speculators who will buy to rent out. At the same time the bank see that first time buyers are seeking out of town centres because they can not loan as much as before.
Also at DNB’s tone remains the same:
– It is particularly those who want secondary residence for children or as an investment, which are rejected, says press contact Even Westerveld.
Jensen says to Dagens Næringsliv that she is glad that the measures contribute to homebuyers think twice about what they can afford and might rather choose housing slightly outside the city centre.
Source: NTB scanpix / Norway Today