Ung-milliarden

Ung-milliarden makes it possible to get home mortgages, even without a full 15% equity.

Get a home mortgage, even without 15% equity
Help to get onto the housing ladder
Get advice on how to buy your first home

Can I get a home mortgage, even without a full 15% equity?

At DNB, we want to help as many young first-time buyers as possible realise their dream of owning their own home. Normally, low income and the need for a down payment are the biggest challenges for first-time buyers. Every six months, we lend a billion kroner to young first-time buyers who don’t have a large enough down payment or help from parents – we call this “Ung-milliarden”.

Price example First home mortgage

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. Presupposes a mortgage on the home.

Ung-milliarden

With Ung-milliarden, we can provide you with a home mortgage, even if you don’t have the full down payment, as long as you have sufficient income and a good payment history. This means that you can get a loan from us, even if you do not meet all the loan requirements.

What do you need to get a home loan?

All banks in Norway must comply with the authorities’ lending regulations, which require a thorough assessment of the borrower’s finances and history.

Ability to pay: You must have a fixed income that indicates that you can cover the loan expenses, even if the interest rate increases by 3 percentage points. We’ll see if you’ll be left with enough to pay interest and instalments after all other bills and expenses have been paid.
Total liabilities: The main rule is that you cannot borrow more than 5 times your income. This applies to total loans, including, among other things, student loans and consumer loans.
Equity: The main rule is a minimum of a 15 per cent down payment for home purchases.
Payment history: Even if you have a high enough income, your application may be rejected if you don’t pay your bills. All loan applications are subject to a credit check.

Apply for pre-qualification letter

The bank’s area of opportunity

We must follow the rules set out by the authorities for home mortgages. This means that we cannot always provide loans to everyone through Ung-milliarden, but we promise to do what we can. If we can’t help you right now, we have our own Young Adults team who can give you the guidance you need to achieve your goal of buying a home in the long run. Contact one of our Young Adults advisers and together we’ll find a solution for you.

Make an appointment

BSU – home savings scheme for young adults

BSU home savings scheme is the savings method for people under the age 34 who want to save for a home.

Read more and order

FAQs

How does Ung-milliarden work?

Who can get help with Ung-milliarden?

“Ung-milliarden” is an expression of the fact that we can waive the main down payment requirement for young customers who are considering buying their first home and who cannot get additional security, for example by parents providing security in their own home.

There are several factors that are assessed in connection with the loan application and an overall assessment is made. There are also limits to how much the bank can waive relative to the main requirements of the lending regulations.

How much of a down payment do I need?

What is the bank looking for?

A key factor in the bank’s assessment is the debt-servicing capacity and willingness to pay. To assess the debt-servicing capacity, the bank looks at the income in relation to total debt. Total debt is included, for example, student loans and credit card limits. In the calculation, we will check whether you have finances to service your loans even if the interest rate increases. The minimum requirement of the authorities is that you can withstand an interest rate of 7%.

Permanent work and income are a big advantage, but the bank can also consider issuing a loan if, for example, you can prove that you will be able to get a job within a reasonable time.

For example, when assessing the willingness to pay, savings, spending, credit cards and whether you pay your bills on time are taken into account. If you save and also have a normal consumption pattern, this will count positively. Our best advice is that you always pay your bills and that you save regularly.

What is additional security?

What does it mean to have a co-borrower?

What does it mean to have a guarantor?

A mortgage guarantor is a person who places their own property as additional security for a loan. For example, this might be your parents.

A secured guarantee can be an option for making up for a shortfall in equity. As a mortgage guarantor, you place your own property as security for someone else’s loan. This means that the bank makes you liable for paying the debt if the person you have placed the guarantee for does not pay. It is important to think carefully before agreeing to place a guarantee for someone. You can set a limit for how much you want to or can guarantee.