Full mortgage-financed Norway homes at 20 percent as municipal-state funding takes off / News / The Foreigner

Full mortgage-financed Norway homes at 20 percent as municipal-state funding takes off. 10,000 homes were purchased with 100 percent mortgage financing last year. At the same time, people are also getting municipal support purchase despite relatively acceptable earnings.

norwaypropertyprices, norwaytax



The Foreigner Logo

The Foreigner is an online publication for English speakers living or who have an interest in Norway. Whether it’s a glimpse of news or entertainment you’re after, there’s no need to leave your linguistic armchair. You don’t need to cry over the demise of the English pages of Aftenposten.no, The Foreigner is here!

Norske nyheter på engelsk fra Norge. The Foreigner er en engelskspråklig internett avis for de som bor eller som er interessert i Norge.

Google+ Google+ Twitter Facebook RSS RSS



News Article

LATEST:

}

Full mortgage-financed Norway homes at 20 percent as municipal-state funding takes off

Published on Monday, 25th February, 2013 at 10:20 under the news category, by Gerald Jones and Michael Sandelson   .

10,000 homes were purchased with 100 percent mortgage financing last year. At the same time, people are also getting municipal support purchase despite relatively acceptable earnings.

House keys
House keys
Photo: The Truth About/Flickr


The figure applies to 1 in 5 homes in the NOK1 to 3 million price-band (roughly EUR 133,920 to 401,680 at today’s ROE).

Norway’s Financial Supervisory Authority (Finanstilsynet) reports these transactions were made possible by people using the Norwegian State Housing Bank (Husbanken).

Loans from the Norwegian State Housing bank are part-bank part-municipal-funded. Business daily Dagens Næringsliv reports today property buyers’ wages are increasing, as is the price-tag of those they purchase.

Whilst the scheme is designed to help the financially-disadvantaged enter the housing market, property purchasers are not subject to means-testing. Over one in six of approved applicants earn more than NOK 400,000 per year (about EUR 53.590).

Husbanken is not subject to FSA scrutiny either. According to the paper, the FSA expressed its concern in December 2011 over the amount of debt Norwegians had incurred.

It advised banks to keep total mortgage-lending to within 85 percent of property collateral. The Norwegian State Housing Bank was not included in their list of banks informed, the FSA says.

Moreover, the state bank increased its lending by 19 percent to NOK 7.5 billion (just over EUR 1 billion) in 2011-12. The municipalities are responsible for making the approval decision for mortgages, however.

Deputy Local Government and Regional Development Minister Anne Beathe Tvinnereim informed DN that “primarily, it’s only the economically-disadvantaged that should receive property start-up loans.”

“This is not the case if one has the possibility to save over a few years to build up the amount banks require as equity,” she declared.



Published on Monday, 25th February, 2013 at 10:20 under the news category, by Gerald Jones and Michael Sandelson   .

This post has the following tags: norwaypropertyprices, norwaytax.





  
Do NOT follow this link or you will be banned from the site!