boliglån

Boliglån, or mortgage loan, is a loan secured by real estate used to purchase, build, or renovate a dwelling in Norway. It is offered by banks and other financial institutions and is the most common way households finance home purchases.

Typically the borrower provides a down payment, commonly at least 15 percent of the purchase price. The remaining amount is financed with a boliglån and is secured against the property. The loan agreement specifies the loan amount, interest rate, and repayment schedule, with monthly payments that combine interest and principal. In practice, many borrowers finance up to about 85 percent of the property's value, with the remaining down payment.

Interest arrangements vary: loans can have fixed interest for a number of years or a floating rate that changes with market rates. The repayment can be structured as amortizing (where the principal is gradually paid down) or, less commonly, as interest-only for a period. There are often requirements for amortization, particularly for higher-LTV loans, under Norwegian mortgage lending rules.

Costs include interest, arrangement and closing fees, and sometimes ongoing service fees. Some costs may be tax-deductible under current rules.

Banks assess affordability by reviewing income, existing debt, and expected rate developments. Regulators supervise mortgage lending to promote prudent financing. The market includes large banks and dedicated mortgage lenders, with many lenders offering online applications and digital services.

Borrowers may refinance an existing boliglån to obtain a lower rate or alter the term, often in response to changes in interest rates or financial circumstances.