Loans

To take out a loan for a home, you generally need to have a minimum of 10% equity, and the loan amount cannot exceed five times your own income. There are particularly favourable mortgages available for young people and for those purchasing an energy-efficient home.

Read more about mortgages

A home equity line of credit (HELOC) is also a type of mortgage, but with much greater flexibility. It is also known as a flexible loan or home equity credit facility.

The revolving credit facility allows you to borrow up to 60 per cent of your home's market value. This amount is the limit on your loan. You manage the revolving credit facility yourself through mobile and online banking, and once you have paid down the loan, you can borrow up to this limit again whenever you wish. For example, if you have paid down a loan from NOK 1.2 million to NOK 1 million, you have NOK 200 000 available to use for whatever you want – whether that is home improvements, a new car, or something else entirely.

Read more about home equity credit line (HELOC)

With a fixed-rate loan, you lock in the interest rate on your loan for a period of three, five or ten years. During this period, the bank cannot change the interest rate on your loan, giving you highly predictable finances. Historically, fixing the interest rate has not been profitable – but it can be seen as insurance against higher interest rates. You can choose a fixed rate on part of your home loan, but you cannot fix the rate on more than 75 per cent of the property's value.

Read more about fixed-rate loans

A consumer loan is an unsecured loan. This means that the bank does not receive security in your assets if the loan is not repaid as agreed. The price for this freedom is a higher interest rate than other loans. You should therefore prioritise repaying your consumer loan quickly. The faster the loan is repaid, the cheaper the loan becomes. We also recommend that you only use consumer loans for absolutely necessary expenses.

The term small loan is often used for Consumer loans up to NOK 50 000. If you have several small loans or credit card debt, you can save a lot by consolidating and refinancing the debt into one consumer loan. You will also gain far better control.

A Credit cardGives you, as the name suggests, the opportunity to pay on credit – that is, with borrowed money. If you use it correctly, it has many advantages, such as free travel insurance and payment deferral, which provides peace of mind when shopping online, for example. In addition, you receive a range of discount and bonus schemes.

However, if you do not pay back within the interest-free credit period – which is up to 45 days with Mastercard from DNB – interest will start to accrue. Therefore, you should always pay back what you owe on the credit card as quickly as you can.

There are dedicated loan products for you who need to buy a car, motorcycle, boat, motorhome or caravan. The different loan types have somewhat different equity requirements and different interest rate levels.

If you are under 34 years old, DNB has particularly favourable terms on car loans. The same applies if you need to buy a zero-emission vehicle.

Read more about car loans

Interest-only period(s) means that you do not pay instalments on the loan – only interest and costs. In other words, you only pay the loan costs and postpone the repayment of the loan itself.

Interest-only period(s) can be very helpful for a temporary period if the household income decreases for various reasons. However, remember that interest-only period(s) increase the total cost of the loan.

Read more about interest-only period(s)

An annuity loan means that you pay the same amount each month until the loan is fully repaid – and is the most common type of loan. In the beginning, the repayment portion is small, whilst the interest portion is large. Over time, the repayment portion increases, whilst the interest portion decreases. Because you pay the same amount each month, an annuity loan makes it easier to keep track of your finances. If the interest rate changes, the monthly amount also changes, but this applies to all loans – unless you choose a fixed interest rate period.