Friend Loan
It is easier to enter the housing market if you buy with a friend. You double your income, get better debt-servicing capacity and more equity.
How much can we buy for?
The very first thing you should find out is how much you can buy a property for. To do this, you apply for a mortgage pre-approval. With a mortgage pre-approval, you are not locked into taking the home loan you apply for. It is only a confirmation of how much you can buy a property for.
A mortgage pre-approval is important to have ready before you start attending property viewings and participating in bidding rounds. Then you know which properties you can view, and are ready to submit a bid when the bidding round opens quite quickly after the property's final viewing has taken place.
Five times total income and at least 10% equity
How much you can buy for is governed by Norwegian law. You can borrow a maximum of five times your total income, including all existing loans each of you has. In addition, you must have at least 10% of the property's purchase price in equity.
Price example Boliglån Ung (Home Mortgage for young adults)
Nominal floating interest rate from 5.24%, annual percentage rate of charge (APRC) from 5.44%. Annuity loan NOK 2 000 000 o/25 years with monthly payment NOK 12 038. The total amount payable would be NOK 3 614 590 made up of the loan amount plus interest of NOK 1 614 590.
Draw up a co-ownership agreement
Buying a property together with a friend can be a major decision. To ensure that everything goes smoothly, we recommend that you draw up a co-ownership agreement. Don't worry, it doesn't have to create a bad atmosphere. On the contrary, it can help you avoid misunderstandings and disagreements in the future.
Together with the law firm Ally, we have created a special co-ownership agreement for friends buying a home together. In addition, you will receive a free advisory consultation and a test that helps you assess whether you are a good match as home buyers.
Advisers for young home buyers
Not sure what’s required to get your home mortgage? Have a chat with one of our advisers for young home buyers.
It is wise to have an exit strategy and a plan for shared finances
Have a plan for selling – a so-called exit strategy. Friends who buy a home together usually have a limited time horizon for their cohabitation. Therefore, it is particularly important to have clear agreements for purchase, use and sale.
When it comes to finances, the simplest approach is to split the home loan and share expenses such as electricity, insurance, joint debt, renovation costs and unforeseen expenses.
Remember that owning your own home also brings unforeseen expenses. You should set aside a buffer for unexpected costs (and we're not talking about surprise parties). It may be wise to think through which insurance policies you need and, for example, set up a joint expense account.
Our home mortgages
Boliglån Ung (Home mortgage for young adults)
Mortgages for first-time buyers
Construction loan
Loans that cover ongoing costs during the construction period
Fixed-rate loans
Loans with predictable borrowing costs
Pre-qualification letter
Be ready for the bid round
Green Home Mortgages
Mortgages for energy-efficient homes
Combination loan
Flexibility and predictability in one
Cabin mortgages
Mortgages for cabins in Norway or Sweden
Bridge financing
Loan for a new home before you sell your old one
Home equity credit lines
Flexible home mortgage
SAGA home mortgage
Home mortgages for SAGA customers
International home mortgages
We offer mortgages for homes in Spain and France