Funding

The annual budgets of the Norwegian State Housing Bank are approved by Parliament.

The grants and administration costs of the Housing Bank are funded by budget appropriations. The lending activity is also controlled and secured by the state, but is repaid by the borrowers at a rate equal to a calculated cost of state borrowing plus 0.5 pct. This rate fluctuates with market conditions. The Housing Banks' lending rate is about one pct. below a favourable mortgage lending rate in the private market.