Real Estate Financing in Norway: A Practical Guide

Published on October 23, 2025 and written by Cyril Jarnias

Norway, with its breathtaking landscapes and stable economy, is attracting an increasing number of foreign real estate investors. Whether you dream of a vacation home by a fjord or a rental investment in Oslo, understanding the nuances of Norwegian real estate financing is essential. Here’s a detailed guide to help you navigate this process.

Financing Doors Open to Foreigners

Good news for international investors: it’s entirely possible for foreigners to obtain real estate financing in Norway. Norwegian banks are generally open to loan applications from non-residents, provided certain criteria are met.

However, it should be noted that conditions may be slightly different from those applied to Norwegian residents. Banks may require a higher down payment or apply slightly higher interest rates to compensate for perceived risk.

Key points to remember:

• Foreigners can obtain real estate loans in Norway
• The required down payment may be higher (typically between 25% and 40% of the purchase price)
• Interest rates may be slightly higher than for residents
• Some banks require the borrower to have a connection to Norway (employment, family, etc.)

Build a Rock-Solid File: Essential Documents

To maximize your chances of obtaining financing, you’ll need to prepare a strong application. Norwegian banks are known for their rigor, and a well-prepared file will make all the difference.

Here’s the list of generally required documents:

• Identification (valid passport)
• Proof of income for the last 3 years (pay stubs, tax returns)
• Bank statements for the last 6 months
• Details of your assets and liabilities (savings, investments, other properties, debts)
• Employment contract or proof of stable employment
• Details of the property you wish to purchase (if already identified)
• Proof of down payment

For non-residents, additional documents may be required:

• Credit history from your home country
• Proof of your connection to Norway (if applicable)
• Sworn translation of documents not written in Norwegian or English

Keys to Success: Conditions for Securing Your Financing

Obtaining a real estate loan in Norway isn’t a mere formality. Banks carefully evaluate each application to ensure the borrower’s repayment capacity. Here are the main conditions to meet to increase your chances of success:

1. A Solid Financial Situation

Norwegian banks place great importance on financial stability. They will carefully examine:

• Your regular income (stable employment is a big advantage)
• Your savings capacity
• Your credit history
• Your other debts and financial commitments

2. A Substantial Down Payment

For foreign buyers, the required down payment is generally higher than for Norwegian residents. Be prepared to provide:

• Between 25% and 40% of the purchase price for a primary residence
• Up to 50% for a rental investment

3. A Controlled Debt Ratio

Norwegian banks apply strict rules regarding debt ratio. Generally:

• Your total debt should not exceed 5 times your gross annual income
• Loan payments should not exceed 30% of your net monthly income

4. Adequate Insurance

Banks will generally require:

• Home insurance for the financed property
• Life insurance to cover the loan amount

Expert Tips to Boost Your Chances

To maximize your chances of obtaining real estate financing in Norway as a foreigner, here are some additional tips:

• Establish a connection with Norway: If possible, open a Norwegian bank account and start making regular transactions there before applying for a loan.
• Learn basic Norwegian: Even though it’s not mandatory, showing that you’re making an effort to learn the local language can be a plus.
• Choose the right timing: Interest rates and loan conditions can vary. Monitor the market and choose the opportune moment to submit your application.
• Use a local broker: A professional familiar with the Norwegian market can save you time and increase your chances of success.
• Prepare a business plan: If you’re buying for investment, a solid business plan showing the potential profitability of your project can tip the scales in your favor.

Final Word

Obtaining real estate financing in Norway as a foreigner is entirely possible, but it requires careful preparation. By understanding the requirements of Norwegian banks well and presenting a strong application, you significantly increase your chances of realizing your real estate project in this magnificent Scandinavian country.

Remember that every situation is unique. Don’t hesitate to consult local professionals for personalized advice tailored to your specific situation.