Earlier this week, Norges Bank asked the government to consider lowering the equity requirement from 15 to 10 per cent. Now the Conservative Party will advocate for exactly that, despite the fact that it was the Solberg government that introduced the requirement of 15 per cent in 2015. – With the system we have today, you are completely dependent on the “parent bank”. You must have parents who can provide money for you, in order to meet an equity requirement. That’s what deputy leader of the Conservative Party, Tina Bru, says. She believes it creates a social divide that no one benefits from. – And we are about to have a generation gap in who can get into the housing market, and who can’t, she says. Equity Equity is money that a home buyer has saved up. Today’s rules require that those who buy a home, as a general rule, must have 15 per cent equity and thus can borrow up to 85 per cent of the purchase price. THE CONSUMER COUNCIL IS SKEPTICAL: Lowering the equity requirement will only increase the purchasing power of the group with already good operating ability. In this sense, it does not solve any problems, but reinforces them, they believe. Photo: Martin Kierstein – Many young people can service loans Historically high house prices in Norwegian cities have made it difficult for many, especially young people, to enter the housing market. Many need help from parents. Now the Conservative Party believes that the regulation can become even more spacious. Conservative leader Erna Solberg says that there are many young people who have jobs and the opportunity to handle a loan. – But now they can’t get that loan because they have too little equity. Now the interest rate is so high that it limits the unreasonable desire to borrow, says Solberg. MORE YOUNG PEOPLE SHOULD GET LOANS: Erna Solberg (H) believes that more young first-time buyers can handle a loan even if they have no equity. Photo: Frode Fjerdingstad It was Solberg’s government that introduced the requirement of 15 per cent equity, in order to curb price and debt growth in the housing market. When the requirement of 15 per cent was set, mortgage interest rates were very low, Solberg now points out. – Then it was important that you had requirements that people did not take out loans that were too high in relation to their income, and that you did not create instability. Now the interest rate is such that it hits the wallet of anyone who has a loan quite significantly. That in itself is a limitation on how much people want to borrow, says Solberg. The government is open to change Leader of the finance committee Tuva Moflag (Ap) tells news that the Labor Party is open to making changes to the lending regulations. – Both the equity requirement, but also the requirement for freedom of installments are elements that it may be natural to look into more closely now, completely in line with what Norges Bank and others point to, says Moflag to news. OPEN FOR CHANGE: Tuva Moflag (Ap) says the Labor Party in its program proposal proposed to take a closer look at the lending regulations. Photo: Aurora Ytreberg Meløe / news Worse: – Will lead to increased prices The Consumer Council believes that a reduced equity requirement will not remedy the problems in the short or long term, but will make it worse. – Those who already today have good management skills and parents in the back of their hands, get even greater opportunities to buy apartments, and contribute to increasing housing prices, says director of the Consumer Council, Inger Lise Blyverket. Not enough homes are being built and a group of parents with strong purchasing power is helping to drive the prices of small apartments upwards, especially in the pressured areas. Lowering the equity requirement will only increase the purchasing power of this group, says the director of the Consumer Council. Photo: Hanne Høiland / news ROGALAND RYKKE2 Reducing the limit for equity will therefore not reduce inequalities, but drive prices up, according to the Consumer Council. – This means that it only becomes more and more difficult to enter the market. In addition, we believe that offering loans to those who have no real service ability will only make it more difficult for them. They can become victims of debt, says Blyverket. She fully understands that first-time buyers have major challenges in the housing market, but believes there are other solutions than lowering the equity requirement. – We believe that the banks must use their opportunities better than they do today. They have a separate quota from the authorities, where they can offer loans outside of what the terms set. Published 05.10.2024, at 19.18
ttn-69
Will make it easier to get a mortgage – news Norway – Overview of news from different parts of the country
