Many homebuyers are using consumer loans as equity

HousingHousing.Photo: Gorm Kallestad / NTB scanpix

One in five real estate agents have found that homebuyers are using the consumer loans to be able to provide the necessary equity, according to a survey.

The survey run by Real Estate and Storebrand has been undertaken and they gathered the answer of about 500 out of the 3,000 people who mentioned that they have experienced that homebuyers are using consumer loans in residential trade one or more times, reported NRK news.

This means that some of those who have the poorest advice, also takes up the clear expensive loans.

– With high house prices, we know that equity requirement increases, and then we are also afraid that more people are tempted to take the consumer loan to be able to get into the housing market, says Carl O. Geving, President of Association of Real Estate.

– We do not think that this is a very widespread problem, but it is very unfortunate when it happens. This means that the public incur greater debt than their economy can sustain, said Geving.



Source: NTB scanpix / Norway Today