What is a co-borrower?
If you apply for a loan with someone else, they are referred to as the co-borrower and the primary borrower. You are both equally responsible for repaying the loan. The co-borrower is usually a partner or spouse, but it can also be a parent, sibling, or friend.
June 2, 2025
Julianne Gåsvær
What does it mean to be a co-borrower?
A co-borrower is liable jointly and severally with the primary borrower. Both the primary borrower and the co-borrower are individually liable to the bank for repayment of the loan.
How much can you borrow with a co-borrower?
Total debt (including all other debt) cannot exceed five times your gross total income. If you are a single person with an income of 500,000, you can have a maximum of 2.5 million in debt. If you also have a co-borrower with an income of 500,000, your combined debt can be approximately 5 million. This makes it easier to enter the housing market.
Can you remove yourself as a co-borrower?
You can apply to be removed as a co-borrower if the income of the person who remains and will keep the loan is sufficient.
A good enough income means that the debt the person concerned must service alone is not higher than five times the annual gross income. If this is not possible, the home must be sold and the loan repaid. It is therefore not sufficient to only have a real estate surety if the income is not high enough in relation to the debt.
The co-borrower helps ensure that the combined income is high enough to service debt amounting to a maximum of 5 times gross income. The real estate guarantor helps ensure that the collateral for the loan is within a maximum of 90% of the value of each residence.
What is the difference between being the primary borrower and a co-borrower?
The primary borrower is the person listed as number 1 on the loan. When a loan is taken out jointly by cohabitants or spouses, the person with the highest income is often listed as number 1. The person listed as number 2 is a co-borrower.
In cases where one party is under 34 years of age and the other is over 34, it is advantageous for the younger person to be listed as the primary borrower. That way, the entire loan can qualify for favorable interest rates through a BOLIGLÅN UNG mortgage.
When you are single or, as a couple, do not have enough income on your own to qualify for the mortgage you need, your parents, for example, can act as co-borrowers. If, in addition, you do not have sufficient savings to cover the down payment, you will also need a real estate guarantee. It is possible to be both. A co-borrower is jointly and severally liable for the loan, while a guarantor is only liable after repeated attempts have been made to collect payment from the borrowers.
Free and fast case management
With us, you will be assigned a dedicated advisor who will help you every step of the way. After
a pleasant conversation with you, we map out your financial situation.
Maybe you want to know too:
