[ad_1]
Mortgage regulation is maintained more or less unchanged. This was done by Finance Minister Siv Jensen in June
The settlement, which will initially apply until December 2019, regulates the amount of loans that homebuyers can absorb and how much money can be spent. They can have equity. The Mortgage Regulation of the Department of Finance for New Mortgage Lending will continue as of July 1, 2018 and will apply until December 2019.
The Regulations state that the total loan of the client must not exceed five times the gross income. He also tightened the conditions for deduction. This applies to the whole country.
Banks are allowed to waive this requirement in 10% of loan applications each quarter. In Oslo, banks can only give up demand in 8% of loan applications.
The regulation also modifies the 40% equity requirement for loans to second homes in Oslo. In other parts of the country, this requirement is 15%
The objective of the regulation is to contribute to a more sustainable development of the mortgage market.
Sources: Huseiernes Landsforbund og regjeringen.no
The median price of housing in Oslo is 3 894 838 kroner. To buy housing at this price, the mortgage regulation requires that you show a total of 584,225 crowns in shares
– What happens when consumer banks meet desperate young people who have operational capabilities but lack # 39; equity? Carl O. Geving, CEO of the Norwegian Association of Real Estate (NEF)
A survey conducted among its members last year revealed that a real estate agent out of five had found that homebuyers were using consumer loans to increase their equity. 19659012] – This is a relatively high figure, says Geving.
– House prices continued to grow in 2018 and still exceeded the 2017 level. At the same time, consumer credit growth was strong over the period. So we can assume that this problem has been improved. In any case, there is no reason to believe that this has diminished when we see the threshold of equity in Oslo.
On Wednesday morning, housing price statistics are released for June.
– The Backlog
Nordmann's total consumer loans rose from 39 billion crowns in 2008 to 100 billion kroner in 2017, according to the Danish Financial Supervisory Authority. Recently, Finans Norge and Evry have obtained a license to collect information on the debt of Norwegian consumers, and the debt register should be operational by the summer of next year.
This is a private economist from Sparebank1, Change Jo Reite, Welcome. ] Like Geving, he believes that there is reason to believe that some homebuyers take consumer loans without telling them at the bank to meet the demand for equity
] – A refinancing bank which banks have not been able to provide. Customers have been able to refinance this as long as home prices have gone up.
It expands:
– Customers have $ 100 billion in consumer loans, and every eighth interest rate that Norwegian consumers pay goes to interest on these loans. When housing prices flatten and interest rates rise, it will no longer be possible to go to the bank and refinance them.
Risk-Free Consumer Loans
Reite found a sharp increase in the number of institutions offering unsecured consumer loans to households. One of the reasons is that mortgage regulation has reduced the risk of lending banks for consumption.
– They were able to provide consumer loans almost without risk because they know that if the customer can not pay, the vacancy rate is 85%.
He believes that mortgage banks can thus guarantee both mortgages at home to customers who can not pay and, in addition, control over whether homes are forced to sell for sale. 19659002] – By changing only the rules for mortgages, the authorities created an imbalance that the lending banks use and explain their great growth.
Household Debt
Percentage Annual Growth
Sources: Statistics Norway Norges Bank
On the same day that the Department of Finance announced the continuation of mortgage regulation, it became clear that the Danish Financial Supervisory Authority was invited to draft new rules such as: kal give the authorities more opportunities to crack down on creditworthy credit practices.
Reite thinks that the rules come several years late.
– We shouted about the danger in the absence of regulation of consumer loans. Unfortunately, politicians do not know the problem before we get there.
– Extreme Sports
DNB's Vidar Korsberg Dalsbø Communication Advisor states that the bank clearly knows that it is a bad idea to use credit card financing to meet fund needs own.
The condition of fairness when applying for a mortgage is extreme sports. The equity requirement is there to protect both individuals and the economy from falling prices in the housing market, and no one should be fooled that way.
Dalsbø suspects that many consumer loans bought quickly will increase in price, and then refinance and back the mortgage.
– In this case, you take a very high risk because the housing market can fluctuate a lot. Over the last ten years, it has only been exceptionally that the housing market has grown by more than 5 to 7% per annum. years, and consumer loans usually cost much more than that.
Do you have any advice on this question? Send us an email!
This answers to some consumer banks
Bank Norwegian
– All clients who apply for a loan must provide income and debts in the application form. If the credit and scoring models conclude that an applicant can get a loan, it's a budget model that determines how much the customer can borrow, "says Torstein Røed, product manager.
He says that Bank Norwegian has no indication to take an unsecured loan to use as equity and if the bank suspects it, the prosecutor will reject the claim
– All that is consistent for this type of loan is that people pay back quickly. About half of the loan was repaid before two years. The vast majority of clients are aware of their own finances and have a realistic plan to repay quickly, "says Røed
Instabank
– I am skeptical of the conclusion that He There is a direct link between the growth of unsecured debt and the evolution of the housing market, "says Robert Berg, CEO of
.We can only talk about Instabank, but we do not recognize the claims of strong unsecured debt growth for young first-time homebuyers in the housing market.I have the impression that the big banks are throwing themselves on young people as soon as they do. Aged 18, offering them credit cards and not Instabank, since I do not know any serious players who handle unsecured loans.
Komplett Bank
– There is no There is no link between mortgage regulation and our loans. We offer unsecured loans that are given after a thorough evaluation of whether the client can operate the loan. Loans are not guaranteed and any unsecured mortgage guarantee with the client is not included in the valuation. The growth is due to the fact that we offer flexible products that are well suited to the wishes and needs of our customers, "says Raimond Pettersen, General Manager
Do you want the latest housing market by email? Sign up for our newsletter here.
