Get on the housing ladder more easily by buying a home with a friend.
Buy a home with a friend
Many first-time buyers’ way onto the housing ladder is to buy one with someone else, preferably a partner, sibling or a good friend. A home is a big investment, and dividing the purchase between more people makes it easier to become a homeowner. You will then have more than one income on which to base your mortgage offer and a larger down payment to use for your home purchase.
Regardless of who you choose to buy a home with, the entire home buying journey – from the pre-qualification letter to the housewarming party – is the same.
Price example Boliglån Ung (Home Mortgage for young adults)
Mortgage of NOK 2,000,000 payable over 25 years. Nominal floating interest rate from 5.04 %, annual percentage rate of charge (APRC) from 5.23 %. Annuity loan with monthly payment NOK 11,803. The total amount payable would be NOK 3,544,090 made up of the loan amount plus interest of NOK 1,544,090.
As a DNB customer, you get access to a co-ownership agreement for friends at the law firm Ally.
Sign a co-ownership agreement
Don’t avoid signing a co-ownership agreement because you fear creating a bad atmosphere. Even best friends disagree, and without an agreement in place, a bad atmosphere is exactly what the outcome will be.
In partnership with the law firm Ally, DNB has created a separate co-ownership agreement for friends. You can also get a free advisory meeting and take a free test to see if you are suited to buying a home together.
How much can we spend?
The first thing you should find out is how much you can spend on a home. To do this, you are applying for a pre-qualification letter. With a pre-qualification letter, you are not locked in to accepting the home mortgage you are applying for. It’s just a confirmation of how much you can spend on a home.
It is important to have the pre-qualification letters ready before you start going out for property viewings and participating in bid rounds. Then you’ll know which homes you can view and are ready to put a bid on when the bidding round opens quite quickly after the last viewing has been done.
Five times the total income and at least 15% down payment
The total amount you can spend is governed by Norwegian law. You can borrow a maximum of five times your total income, including all loans each of you has from before. In addition, you must have at least 15% of the home’s purchase price as a down payment.
An exit strategy and a joint financial plan are a good idea
Have a sales plan – an exit strategy. Friends who buy a home together, especially, often have a limited time period for their cohabitation. It is therefore particularly important to have clear agreements for the purchase, use and sale.
When it comes to finances, it’s easier to split the home mortgage and divide costs such as electricity, insurance, joint debt, renovation costs and unforeseen costs.
Remember that when you own your own home, there are also unforeseen expenses. You should have a savings buffer set aside for unexpected expenses (and then we’re not talking about surprise parties). It’s a good idea to think about what insurance you need and, for example, create a joint expense account.
Our home mortgages
Boliglån Ung (Home mortgage for young adults)
Mortgages for first-time buyers
Loans that cover ongoing costs during the construction period
Loans with predictable borrowing costs
Be ready for the bid round
Green Home Mortgages
Mortgages for energy-efficient homes
Flexibility and predictability in one
Mortgages for cabins in Norway or Sweden
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, Portugal and France