Compare Mortgages on Loan.no
Compare mortgages from several lenders and get a clearer overview of interest rates, fees, borrowing limits and terms before choosing an option.
A mortgage is a secured loan used to purchase or refinance a property. The property normally acts as security for the loan, which means the lender can offer a lower interest rate than is generally available on unsecured borrowing.
The mortgage rate and amount available to you will depend on factors including your income, total debt, deposit, property value and ability to manage the monthly payments.
In short
When comparing mortgages, consider the effective interest rate, fees, repayment term, loan-to-value ratio and total amount repayable. The lowest advertised rate will not necessarily be available to every applicant.
Compare Mortgages Step by Step
Start by entering the approximate property value, the amount you want to borrow and your preferred repayment term. This makes it easier to compare mortgages that may be relevant to your circumstances.
Review the nominal and effective interest rates, fees and other conditions shown for each lender. You should also check whether the mortgage requires you to move your current account, salary payments or other banking products.
Once you have identified a suitable option, you can continue to the lender’s website to read the full terms and submit an application.
Important to know
The information displayed in the comparison is general. The mortgage amount, interest rate and terms you receive will be based on the lender’s individual assessment of your finances and the property.
Mortgage Interest Rates and Costs
The nominal interest rate shows the interest charged on the mortgage itself. The effective interest rate also includes relevant fees and therefore provides a better basis for comparing the cost of different mortgages.
A small difference in the interest rate can have a significant effect because mortgages normally involve large amounts and long repayment terms. Compare both the estimated monthly payment and the total cost over the full term.
Mortgage rates are normally determined individually. Your loan-to-value ratio, income, total debt, payment history and the lender’s assessment of the property can all affect the rate you are offered.
Compare the total cost
Do not compare mortgages using the nominal rate alone. Check the effective interest rate, fees, repayment term, monthly payment and total amount repayable.
Deposit and Loan-to-Value Ratio
Your deposit is the part of the property purchase that you finance without the mortgage. The remaining amount is borrowed from the lender.
The loan-to-value ratio shows the mortgage as a percentage of the property’s value. A larger deposit results in a lower loan-to-value ratio, which may give you access to a lower interest rate or more favourable terms.
Under the current Norwegian lending regulations, a repayment mortgage can normally cover up to 90% of the property’s value. This means that buyers will generally need a deposit of at least 10%, although the lender must still assess each application individually.
You can read more about the current requirements in the Norwegian Government’s guidance on the Norwegian lending regulations.
Debt and Ability to Repay
Lenders assess whether your finances can support the mortgage payments alongside your other regular expenses and financial commitments.
Under the Norwegian lending regulations, total debt should normally not exceed five times your annual gross income. This calculation includes the mortgage and other debt, such as personal loans, car finance and available credit limits.
The lender will also assess whether you could continue making the payments if interest rates increased. The affordability test normally uses the higher of an interest rate of 7% or your current rate plus three percentage points.
An individual assessment applies
Meeting the general requirements does not guarantee approval. The lender will assess your complete financial circumstances, the property and its own lending criteria.
Fixed or Variable Interest Rate
A variable-rate mortgage can change when the lender adjusts its rates. Your monthly payment may therefore increase or decrease during the repayment period.
A fixed-rate mortgage keeps the interest rate unchanged for an agreed period. This can make payments more predictable, but the agreement may be less flexible and early changes or repayment can involve additional costs.
The most suitable option depends on your finances, need for predictability and expectations for future interest rates. Check the conditions carefully before selecting a fixed or variable rate.
Repayment Term and Monthly Payments
A longer repayment term usually reduces the monthly payment because the mortgage is repaid over more years. However, this will normally increase the total amount of interest paid.
A shorter repayment term results in higher monthly payments but may reduce the mortgage’s total cost. Choose a term that gives you manageable payments without extending the repayment period more than necessary.
Mortgage loans with a loan-to-value ratio above 60% are normally subject to repayment requirements under the Norwegian lending regulations.
Calculate Mortgage Costs
A mortgage calculator can show how the loan amount, interest rate and repayment term affect the estimated monthly payment and total amount repayable.
The calculation is only an estimate and does not constitute a binding mortgage offer. The actual cost will depend on the rate, fees and terms offered by the lender.
First-Time Buyers and Existing Homeowners
If you are buying your first property, the size of your deposit and your ability to manage the payments will be important parts of the lender’s assessment. Remember to account for additional purchase costs, not only the property price.
If you already own a property, you may want to compare mortgages before moving home, borrowing against the property or changing lender. The lender will consider the current property value, outstanding mortgage balance and your wider finances.
Different lenders may value the same application differently. Comparing several mortgages can therefore be useful for both first-time buyers and existing homeowners.
Changing Lender or Moving Your Mortgage
You can compare mortgages even if you already have one. Changing lender may be relevant if another bank offers a lower effective interest rate, reduced fees or terms that are better suited to your circumstances.
Before moving the mortgage, compare the potential saving with any costs involved. These may include arrangement fees, valuation costs or charges associated with ending an existing fixed-rate agreement.
Check whether the new offer requires you to move other banking services. A lower mortgage rate may be linked to requirements concerning salary payments, insurance or additional products.
Choose a Mortgage Based on the Complete Agreement
The most suitable mortgage is not necessarily the one with the lowest advertised interest rate. Your choice should also reflect the effective rate, fees, repayment structure and flexibility offered by the lender.
Before choosing a mortgage
- Compare the effective interest rate
- Check arrangement fees and ongoing charges
- Consider the repayment term and total cost
- Review requirements for additional banking products
- Make sure the monthly payments remain affordable
Comparing mortgages on Loan.no does not in itself result in a credit check. A credit check may be carried out once you continue to a lender and submit an application.
Apply for a Mortgage Through Loan.no
If you would prefer to submit an application directly rather than choose a lender from the comparison, you can use Loan.no’s separate mortgage application page.
You can submit an application free of charge and without obligation. Any mortgage amount, interest rate and terms offered will depend on an individual assessment.