Regulations on Lending
The latest lending regulations govern banks’ practices and their ability to grant loans to customers.
Here you can read more about what’s new and how the changes affect you as a loan customer. If your loan application was denied before the New Year, you might want to reapply now. Contact us for advice on this.
July 7, 2026
eiendoms-admin
The new lending regulations take effect on December 31, 2024.
The Ministry of Finance has established guidelines for how banks can lend money. This is important for ensuring a more sustainable debt situation for most people. Lending practices for mortgage loans have been regulated by law since 2015, but in recent years there have been some changes worth noting. As of July 1, 2023, the regulations were expanded to also apply to loans secured by collateral other than a home, such as boat loans and car loans.
Housing prices have risen significantly in recent years, as has household debt. This is why the Ministry of Finance issued a regulation in 2015 governing mortgage lending practices. The Mortgage Lending Regulations have since been further developed and amended several times. The Consumer Loan Regulations were established in 2019, stipulating, among other things, that the maximum term for new consumer loans should be 5 years.
Among other things, the regulation sets requirements for:
- The customer’s ability to make payments: How much does the customer have left to pay toward the loan after other fixed expenses have been paid?
- Debt-to-Income Ratio: How much debt does the customer have relative to their income?
- Loan-to-Value Ratio: How large is the loan relative to the value of the home?
- Requirement to make principal and interest payments on mortgages with a loan-to-value ratio above 60% and all consumer loans
If you’re looking to buy a rental property in Oslo, the new lending regulations will work in your favor. You can now borrow up to 90% of the value of a second home in Oslo, compared to the previous limit of 60%.
Requirements in the Lending Regulations:
Home loans
Consumer loans
Other mortgages
Maximum loan-to-value ratio, amortizing loan
90 percent
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Maximum loan-to-value ratio, credit lines
60 percent
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Requirement for Payment in Installments
Loans with a loan-to-value ratio above 60 percent
All loans
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Maximum Debt-to-Asset Ratio
500 percent (total debt)
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Interest Rate Stress Test in the Assessment of Debt Servicing Capacity
The higher of a 7 percent interest rate and a 3 percentage point increase in the interest rate on the customer’s total debt
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Flexibility Quota
10 percent
(8 percent in Oslo)
5 percent
10 percent
Second home in Oslo
Previously, the maximum loan-to-value ratio for the purchase of a second home was 60%. This requirement has now been repealed, and the general requirement of a maximum loan-to-value ratio of 90% will also apply to loans for the purchase of a second or third home in Oslo.
Refinancing
The regulation shall not prevent a customer’s loan from being refinanced at the same bank or transferred to a new bank. There are certain conditions, and for home loans, these are:
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that the refinancing amount does not exceed the existing loan
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that it is the same property that the bank is taking as collateral, or that the loan-to-value ratio is the same or lower
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has the same term as the existing loan
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have the same or stricter requirements for installment payments.
An existing mortgage can also be replaced with a loan secured by another property. The new loan cannot have a higher loan-to-value ratio than the existing loan, and the loan amount, term, and repayment schedule must be the same.
For consumer loans and secured loans other than mortgages, the terms are as follows:
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the new loan is not larger than the existing loan
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that the total amount of interest, fees, and other costs does not increase.
More information about the major changes to the lending regulations:
The requirement for interest rate stress testing is changed:
Previously, banks had to take into account an interest rate increase of 5 percentage points when assessing a customer’s ability to service their loan. They then took the current floating interest rate as a starting point and added an additional 5 percent. The customer then had to be able to afford to pay this amount if the interest rate rose by 5 percent more than the current interest rate. From January 1, 2023, banks must add a stress rate of at least 3 percent or a total rate of 7 percent when assessing the customer’s ability to service their loan. Many customers who experienced a rejection of their loan application or received a lower financing certificate than desired before the new year should apply again now.
| Current interest rate on the customer’s debt: | Interest rate the bank must calculate: |
| Higher than 4 percent | Interest rate + 3 percentage points |
| Less than 4 percent | 7 percentage points |
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