Tax Tool

Loans

Mortgage affordability in Norway

Banks in Norway work inside lending rules as well as their own credit policy. This page applies two of the public constraints: total debt within five times gross annual income, and a loan within 85% of the property price. It then prices that planning loan at your rate and at a rate three points higher.

Quick math0

Use this for quick arithmetic, percentages, or to check figures while filling in the main tool, without leaving the page.

Your figures

Estimate

3,750,000 NOK planning maximum

Planning maximum loan
3,750,000 NOK
Room under the 5× income rule
3,750,000 NOK
Monthly payment at the entered rate
22,361 NOK
Share of gross monthly income
35.8%
Payment at the 8.2% stress rate
29,442 NOK

How this breaks down

Implied maximum purchase at 85% loan-to-value
4,411,765 NOK
85% of the property price
3,825,000 NOK
Loan needed after your equity
3,800,000 NOK
Fits this planning maximum
No

Uses two published lending constraints as a plan: total debt within five times gross income, and borrowing within 85% of the property price. The stress payment adds 3 percentage points. A bank decides the actual loan.

How to use this tool

  1. Use Mortgage Affordability Tool for the question described above, and check that the inputs match your records and time period.
  2. Enter gross annual income.
  3. Enter other debt.
  4. Enter interest rate to test.
  5. Enter term.
  6. Enter property price (Use 0 if you are not testing a specific home.).
  7. Enter equity you can put in.
  8. Change gross annual income, other debt, interest rate to test, term, property price, equity you can put in to compare scenarios, then check the units in the result.

Worked example with the prefilled values

This example shows how Mortgage Affordability Tool uses its starting values. Change the calculator inputs to estimate your own situation.

Gross annual income
750000 NOK
Other debt
0 NOK
Interest rate to test
5.2 %
Term
25 years
Property price
4500000 NOK
Equity you can put in
700000 NOK

3,750,000 NOK planning maximum

  • Planning maximum loan3,750,000 NOK
  • Room under the 5× income rule3,750,000 NOK
  • Monthly payment at the entered rate22,361 NOK
  • Share of gross monthly income35.8%
  • Payment at the 8.2% stress rate29,442 NOK

Uses two published lending constraints as a plan: total debt within five times gross income, and borrowing within 85% of the property price. The stress payment adds 3 percentage points. A bank decides the actual loan.

Formula and calculation logic

Income limit = max(0, gross annual income × debt-to-income limit − other debt)

Property limit = property price × maximum loan-to-value; planning loan = the smaller applicable limit

Monthly payment uses the annuity formula at the entered rate; stress payment uses entered rate + the configured stress increment

P is the loan principal. r is the monthly interest rate as a decimal, and n is the number of monthly payments.

The income room is five times gross annual income, minus the other debt you still owe. Other debt includes student loans, car loans, and credit cards.

If you enter a property price, the loan is also capped at 85% of that price. The planning maximum is the lower of the two caps.

The stress payment uses your rate plus 3 percentage points. It shows whether the same loan is still a manageable share of gross monthly income if the rate rises. It is not a bank's living-cost budget.

Assumptions

  • Five times income and 85% loan-to-value are planning rules drawn from the mortgage lending regulation. A lender can be stricter.
  • Gross income is before tax. The page does not judge whether the payment fits a household budget.
  • Leave the property price at 0 if you do not have a home in mind yet. You will still see the income cap and the purchase price it implies at 85% lending.

Published sources

Further reading for checking current rules and information. These links are not live inputs to the tool.

Questions about this tool

Does five times income mean I will be offered that loan?

It is a ceiling used in regulation, not a promise. Income security, the household's costs, and the bank's own model still decide the offer.

What is the stress rate for?

Lenders test whether the loan can be paid if the interest rate is higher than the rate in the offer. This page adds 3 percentage points, which is the add-on used in that kind of test.

Should equity include the whole deposit?

Enter cash and other funds you can put into the purchase. The page compares the price minus that equity with the planning maximum.