Norwegian homeowners are borrowing more against their properties. The Financial Supervisory Authority of Norway reports increased loan-to-value ratios for both new repayment loans and credit lines.
New repayment loans now average 66% of property value. Credit lines reach 46% of home values. These figures come from the regulator's latest quarterly assessment.
Regulators recently relaxed mortgage rules. The maximum loan-to-value ratio increased from 85% to 90% for new repayment loans. This change appears in lending patterns as more borrowers approach the new limit.
Knut Haugan, director of risk monitoring, said the equity requirement change clearly affected borrowing. More homeowners now borrow higher percentages of their property's worth. He warned this could create challenges if housing prices decline.
What does this mean for Norwegian homeowners? Lower equity requirements help more people enter the housing market. But increased borrowing also means greater vulnerability to market downturns.
The Norwegian housing market remains strong despite economic uncertainties. This regulatory change aims to maintain market accessibility while monitoring financial stability risks.