Start-up loans are designed to help people with long-term problems getting a mortgage from a normal bank. The target group includes families with children, the elderly, disabled people and first-time buyers. The municipality processes your application and decides whether you are eligible for a loan.
There are two separate kinds of start-up loans:
An ordinary start-up loan is for people who need a stable and safe home, but who cannot get a mortgage from a private-sector bank. They may also be unable to save for a deposit.
A start-up loan for first-time buyers is for people who are buying their first home, who have a small deposit and who are not in the target group for ordinary start-up loans. This loan is currently being trialled, and you can only apply for it in selected municipalities.
Which start-up loan is right for you?
Here you can find out whether you are in the target group
for a start-up loan, and which start-up loan you should apply for.
Go to the loan selector and apply for a start-up loan
(The loan selector is in Norwegain only)
You can apply for an ordinary start-up loan in your municipality if you
You do not need to have saved up a deposit in order to get an ordinary start-up loan. However, you must have sufficient income to be able to make the loan payments, as well as to cover other necessary expenses.
The municipality is responsible for processing your application and calculating how much you can afford to borrow over the long run. In some cases, municipalities can provide grants as well as start-up loans. Contact your local municipality or borough to find out more about your options.
An ordinary start-up loan can be used to
Some municipalities combine the start-up loan with municipal grants for adapting homes or targeted grants for first-time buyers. Ask your local municipality whether they offer any grants. If they do, you can apply for a grant at the same time as applying for a start-up loan.
You can submit an application to any municipality, but many municipalities only grant loans to people who live in the municipality.
You cannot be in the target group for an ordinary start-up loan, and you must have a deposit of at least five percent of the home’s value. You must have tried to get a mortgage from a private-sector bank, but either have been rejected or not have been granted a big enough loan to buy a suitable home.
As a general rule, you cannot have owned a home previously, but there are some exceptions if you want to get back on the housing ladder or are going through a life crisis. This could include a relationship breakdown, the death of a cohabiting partner/spouse or becoming unable to work.
If you do not meet these conditions, and none of the exceptions apply to you, your application will be rejected. The person responsible for your case will let you know whether you are in the target group for an ordinary start-up loan. In that case, you will need to reapply.
The municipality is responsible for processing your application and calculating how much you can afford to borrow over the long run. In some cases your municipality may provide a grant. Contact your local municipality to find out more about your options.
A start-up loan for first-time buyers can be used to
This loan cannot be used to refinance another loan, since you must generally be a first-time buyer.
You can apply to any of the municipalities participating in this trial, even if you do not already live in the municipality.
The following municipalities offer start-up loans for first-time buyers:
Start-up loans for first-time buyers are not supposed to compete with mortgages offered by private-sector banks. Therefore, you can only keep your loan with the municipality for 10 years.
After those 10 years have passed, you must refinance the loan with a private-sector bank. If you have become financially disadvantaged after those 10 years, you can apply to refinance the loan as an ordinary start-up loan.
A normal mortgage term is 25 to 30 years. That is so you can afford the monthly mortgage payments.
Your monthly payments are therefore calculated as if your loan had a longer term than 10 years – usually 25 or 30 years. After 10 years, you will be left with a residual loan which you must refinance with a private-sector bank.
The example below is based on a NOK 3.4 million start-up loan for first-time buyers, with the monthly payments calculated using a 30-year term.
You must have an electronic ID if you want to apply yourself. You can log in using BankID, Buypass or Commfides.
How to obtain BankID (bankid.no)
If you cannot get an electronic ID, or prefer not to apply electronically, you can contact your municipality/borough. They will explain how you can apply.
You can also get someone you know to help you apply. Find out more about applying with an assistant or guardian.
When you apply, you must document all of your income and expenses. Much of the information is retrieved automatically, but you may need to upload some attachments yourself. If you have any paper documents you can take a photo of them and upload them to your application.
Your income and expenses determine how much you can borrow. The price of a modest, suitable home in the area in question is also very important.
The municipality is responsible for processing your application and calculating how big a loan you can afford in the long run. To find out more about your eligibility for a loan, please contact your municipality.
Municipalities use the Housing Bank’s interest rate schedule. On top of that, municipalities can add 0.25 percentage points of interest to cover their administrative expenses.
All municipalities can offer fixed-rate loans, but not all do. Contact the municipality where you are applying for a loan to find out what they offer.