How much can you
get in mortgage?
How much you can borrow is a complicated calculation with several factors. Here we give you more information about how much you can expect to get in mortgages
June 12, 2025
eiendoms-admin
How much can I get in a mortgage?
– that’s a question many people wonder
How much you can get in mortgages or how much you can borrow in relation to your income depends on a number of things, but as a general rule, all banks apply the limits in the Lending Regulations.
There are 2 particularly important elements here:
- The customer must not have more debt in total than a maximum of 5 times the annual gross income (if there are 2 or more people who are going to borrow together, the total income before tax applies)
- The loan granted for the purchase of a home must not exceed 90% of the home’s purchase price or value.
How banks calculate a customer’s liquidity is quite different. It is important that you have a few thousand to spare each month, even with an interest rate that is 5% higher than today’s actual interest rate. This is called “stress interest”.
Other things that come into play are:
- Number of cars
- Number of children under the age of 18
- What type of other loans you have
- How long you have been employed in your current job
- How long you have lived in your current home
- Education
How much can I borrow?
Many people wonder how much they can get in loans, and most often mortgages.
The simple answer that often comes up is that you can borrow up to 5 times your gross income. This is not necessarily true. Some customers with a high fixed salary can probably expect a maximum loan based on 5 times their gross income, but for the vast majority it is income minus costs that gives the answer to how much loan you are granted.
The banks do not base themselves on the current interest rate level, but must take into account a future interest rate level. They must be sure that the customer can tolerate a 3% higher interest rate than today’s floating interest rate. When the interest rate is on the way up, this surcharge the customer must bear rises in parallel. It will therefore be more difficult to get a loan.
Another thing many people forget is that how much you can borrow, i.e. this 5 times, includes all loans. Student loans, car loans, boat loans and consumer loans/credit cards must be included in the calculation. For example, if he has NOK 650,000 in total debt excluding mortgages, this must be included in the calculation.
For example, if you have a credit card that has not been used, but has a credit limit of NOK 50,000, then the credit limit is also debt that must be included in the calculation.
How much you can borrow is a complicated calculation with several factors.
One factor is that you must satisfy the requirement for a total loan of a maximum of 5 times gross income.
Another factor is that the banks cannot grant loans for the purchase of a home beyond 90% of the value of the home.
A third factor is that you have the liquidity to pay for the loan even if the interest rate rises by 3%.
The banks have often incorporated these requirements into a calculation model that varies from bank to bank. The vast majority emphasize:
- wage income
- any rental income or other income
- existing debt
- new loan you are applying for
- number of properties you own
- how many people the household consists of
- number of cars you have
- how long you have been employed in your current job
- how long you have lived in your current home
- and a whole lot more.
In short, there’s no simple formula for what you can borrow, but we can make it easy for you as a customer;
You can contact us today and get an answer to this – completely free of charge.
We offer a personal advisor who knows which bank you are best suited to and who is familiar with the different banks’ calculation models. If you want to know exactly how much your income means you can borrow, contact us today!
FAQ – frequently asked questions about loans
What does liquidity mean?
Liquidity is the same as the ability to pay for itself. Liquidity ratio says something about income in relation to expenses
What is stress rate?
The banks are required to check that the customer can withstand an interest rate increase of at least 3% (or a total interest rate of 7%) in order to be able to offer the loan. This means that if you apply for a loan that has an interest rate of 4% today, the bank must make sure that you are also able to pay off the loan every month even if the interest rate increases to 7%.
What does debt ratio mean?
Debt ratio is all the debt you have in total (including joint debt to housing associations) divided by gross income. The total debt must not be higher than five times gross annual income. This applies not only to mortgage debt mortgagebut also consumer loans, credit cards, student loans, car loans and the like.
If you earn NOK 450,000, you must not have debts that in total exceed NOK 2,250,000. If you have a car loan of NOK 150,000, you cannot borrow more than a maximum of NOK 2,100,000 in mortgages. If you are 2 people who earn 450,000 each, you can have a total debt of up to 4,500,000.
How much does a mortgage cost?
It differs from bank to bank. There are also large differences in the banks’ fees, which affects the effective interest rate. It does not help to have a slightly lower mortgage interest rate if the bank’s term fee and establishment fee are high. Hos Finansportalen you can compare the banks’ interest rates. The vast majority of banks offer the best interest rates to young home buyers under the age of 34.
Should I choose fixed interest?
You should choose a fixed interest rate if you are very worried about an interest rate rise. Few people manage to fool the bank by speculating on fixed interest rates, but we have also seen cases where it has been beneficial. The vast majority of loans are most affordable with floating interest rates over time, but sometimes it can be worth a few extra kroner to avoid financial worries.
Can I borrow more if I have rental income?
Yes you can. Here there are some differences in how the different banks calculate how much more you can borrow due to rental income. Contact us and we will set up an example for you. For tax-free rental income, you can start from approx. 80 months’ rental income in additional loans. If you have 7,000 per month. rental income, you can expect to be able to borrow approx. 560,000 extra. As I said, big variations – contact us for a concrete answer to your particular case.
What must be the security to buy property number 2 in Oslo?
This is called secondary residence. Secondary housing in Oslo previously required 40% equity or 40% secured in another residential property, but this rule has been removed. The rules are now the same as for primary housing (the one you live in). Maximum 90% of the value in loans.
How much equity do I need to have to get a mortgage?
The main rule is that you must have 10% equity + costs (read more about costs below). If you lack all or part of this sum in your own account, this can be replaced with security in the residence of, for example, parents or someone in the immediate family. This is called encashment.
How do student loans affect the application for a mortgage?
The mortgage regulations state that a customer must not have more debt than 5 times their annual gross income. Student loans also take a part of this cake, but are still seen more leniently than, for example, car loans. Student loans are the cheapest loan you can get and can be canceled if you die. You also have the right to cancel interest and postpone payment in a number of cases. You can read more about this on NAV’s website: deletion of student loans.
How much income do I have to have to get a mortgage?
Here there are differences from bank to bank, contact us and we will quickly calculate this for you. The main rule for all banks is that the customer should not have more total debt than a maximum of 5 times annual gross income, should be able to pay the loan even if the interest rate is 5 percent higher than the current interest rate and have 10 percent equity (or real guarantee).
What is additional collateral mortgage?
Additional security is when the bank is allowed to take a mortgage on a property in addition to the property you are buying. This is also called bailment. If you lack 15 percent equity, this can be used. Then the bank takes a mortgage (security) on the property you buy, but also gets security for 15-20 per cent in, for example, your parents’ home. Those who own this property become real estate developers.
What is a surety?
If you do not have 10 percent equity, you can use a secured creditor. In this case, the bank receives a mortgage (security) in the property you buy, but also receives security for 10-15 percent in, for example, your parents’ home. Those who own that home become real estate sureties. Please read more about bail here.
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