Mortgage as a student
You can get a mortgage whilst studying. At DNB, we don't just look at what you earn today, but also at what you will earn when you finish.
Many students rent accommodation but dream of owning their own home. The quickest way to find out whether you can buy a home is to apply for a pre-qualification letter. It is completely non-binding, free of charge, and you can speak with advisers who specialise in helping young people achieve their home ownership goals.
How to get a mortgage as a student
The rules for getting a mortgage are the same for students as for everyone else. Three things must be in place:
- You have at least 10 per cent of the property's price in equity. Equity is the money you pay yourself for the property, in addition to the home loan you take out. This could be, for example, money you have in a savings account or an inheritance you have received.
- All your debt is a maximum of five times your income. All debt is counted, including your student loan. The credit limit on your credit card is also counted as debt, even if you have not used it. The same applies to instalment payment services.
- Your finances can handle the loan. The bank assesses your income to ensure that you can repay the home loan and live normally with other expenses alongside it. This also applies in the event of any interest rate fluctuations.
We look at the income you will receive after your studies
You do not always need to have everything in order before applying for a mortgage. Many people believe, for example, that having a permanent job is an absolute requirement for getting a mortgage. But if you are studying for a profession where we know roughly what you will earn in a few years, we take that into account in our assessment.
If you are in the final part of your studies, or have already received a job offer, this increases the chance of you getting a loan for a home purchase. If you have a part-time job alongside your studies, that also counts in the assessment.
Heard about the Ung (Young Adults) billion?
At DNB, we have created the Ung (Young Adults) billion to make it easier for young people to buy their first home. The scheme gives us the opportunity to say yes to more young people applying for a mortgage by allowing us to set aside some of the requirements for home purchases.
How your parents can help
Many young people need help from their parents to be able to buy their first home. Parents can contribute in several ways, such as acting as a guarantor, becoming a co-borrower or giving a cash gift.
- Surety: Your parents Guarantee part of the loan. They often use their own home as security.
- Advance on inheritance or cash gift: Your parents give you money that you use as equity. It is wise to write an agreement, particularly if you have siblings.
- Borrow together: Your parents are listed as co-borrowers together with you. Their repayment capacity is then taken into account when we assess the loan application.
Perhaps you could buy a home together with someone?
It is easier to enter the housing market if you buy with a friend, sibling or partner. You will typically have more than one income, better ability to service a loan and more equity.
To move in together with someone is a big decision, but at DNB we make it easier with friend loans and cohabitation agreements. Read more about friend loans and receive advice on what is most beneficial for you.
Are you buying your first home?
First home loan gives you our lowest interest rate and advisory services tailored to first-time buyers.
Mortgage for young adults
Mortgage Ung (BLU) is a mortgage for you under 34 years of age, with better interest rate terms than an ordinary mortgage.
Test your borrowing capacity
Wondering how much you can borrow for a mortgage and what you can afford to buy?
Work on increasing your equity
Try to fill up your BSU account every year to take advantage of interest rates and tax deductions.
Price Example Mortgage Ung (Young Adults)
Nominal floating interest rate from 5.49%. annual percentage rate of charge (APRC) from 5.70 %. Annuity loan NOK 2 000 000 o/25 years with monthly payment NOK 12 334. The total amount payable would be NOK 3 703 390 made up of the loan amount plus interest of NOK 1 703 390..