Where does the "5× income" rule come from?

From the Lending Regulation (2020), the Financial Supervisory Authority’s framework for Norwegian bank lending. The 5× income cap was introduced to dampen home-price growth and reduce systemic risk from household debt. Banks may deviate from the rule for up to 10 % of their quarterly lending volume, the "flexibility quota".

Is this a binding offer?

No. The calculator only gives an estimate. The bank does a full credit assessment that also considers fixed expenses, payment defaults, employment status, collateral on the home, and much more. Use the result as guidance, not as a guaranteed loan amount.

What counts as equity?

Savings, a BSU (housing savings account), sale of a previous home, inheritance, documented gifts, and securities. Parental loans/co-signing can be used to meet the requirement but doesn’t reduce the loan needed itself. Cryptocurrency and illiquid assets are usually not accepted.

What is the "rate + 3 % stress test"?

The bank must verify you can still service the loan if the rate rises 3 percentage points above the current level. The goal is to protect you, and the bank, against future rate hikes. The calculation uses this stress-tested rate when deciding what you can realistically borrow.

How Much Can I Borrow - Norwegian Mortgage Capacity

Max loan by income (5×)
Max loan by equity (85%)
Max loan (lowest of these)
Max purchase price

How it works

A rough estimate of how much you can borrow for a home under the Norwegian lending regulation. The main rules are that total debt should not exceed 5 times gross annual income, and that the loan can be at most 85% of the property value (you need at least 15% equity). The tool shows both limits and uses the lower one. Other debt is subtracted from the income limit.

This is only a starting point. The bank also assesses serviceability with an interest-rate increase of at least 3 percentage points, and may have its own requirements. The figures are indicative, errors excepted. Everything is calculated locally in your browser.

About this tool

Loan capacity (låneevne) is the maximum amount Norwegian banks are willing to lend you, based on the Financial Supervisory Authority’s lending regulation. The main rule is that total debt must not exceed 5× annual gross income. In addition, you must be able to withstand an interest-rate increase of 3 percentage points without financial hardship. This calculator takes your gross annual income, existing debt, equity and an assumed rate/term, and gives you an estimate of how much you can borrow for a home purchase. All calculations run locally in your browser; no numbers are sent anywhere.

How to use it

Enter your gross annual income (before tax).
Add any existing debt (car loan, consumer loan, student loan).
Fill in your equity (at least 15 % of the purchase price is required).
Adjust the assumed rate and term, the calculator stress-tests with rate + 3 %.
See the estimated maximum loan, monthly cost and the corresponding property price.

Examples

Single person, 600,000 NOK income

InputAnnual income 600 000, debt 0, equity 500 000

OutputMax loan ≈ NOK 3 000 000 (5× income), max property price ≈ NOK 3 500 000

Simple case: no existing debt. With 500,000 in equity and a 3M max loan, you can buy a home for ~3.5M NOK.

Couple with children

InputCombined income 1 200 000, car loan 300 000, equity 1 000 000

OutputMax loan ≈ NOK 5 700 000, max property ≈ NOK 6 700 000

Combined 5× income = 6M, minus car loan = 5.7M home-loan capacity. The calculator warns that child-related costs aren’t deducted.

First-time buyer

InputIncome 500 000, student loan 250 000, equity 300 000

OutputMax loan ≈ NOK 2 250 000, max property ≈ NOK 2 550 000

Student loan counts as ordinary debt in the 5× rule. The 15 % equity requirement caps the property price. A BSU housing savings account counts as equity.

Common use cases

A first estimate of your home budget before you contact the bank.
Assessing whether it’s time to upgrade to a larger home after a raise.
Comparing how much interest-rate level affects the maximum budget.
Checking the effect of paying off an old consumer loan before buying a home.
Planning savings: how much equity do you need for your dream home?
Helping children or a partner understand how Norwegian lending caps work.

Frequently asked questions

Where does the "5× income" rule come from?: From the Lending Regulation (2020), the Financial Supervisory Authority’s framework for Norwegian bank lending. The 5× income cap was introduced to dampen home-price growth and reduce systemic risk from household debt. Banks may deviate from the rule for up to 10 % of their quarterly lending volume, the "flexibility quota".
Is this a binding offer?: No. The calculator only gives an estimate. The bank does a full credit assessment that also considers fixed expenses, payment defaults, employment status, collateral on the home, and much more. Use the result as guidance, not as a guaranteed loan amount.
What counts as equity?: Savings, a BSU (housing savings account), sale of a previous home, inheritance, documented gifts, and securities. Parental loans/co-signing can be used to meet the requirement but doesn’t reduce the loan needed itself. Cryptocurrency and illiquid assets are usually not accepted.
What is the "rate + 3 % stress test"?: The bank must verify you can still service the loan if the rate rises 3 percentage points above the current level. The goal is to protect you, and the bank, against future rate hikes. The calculation uses this stress-tested rate when deciding what you can realistically borrow.

Technical background

The calculation combines three constraints. (1) Total debt ≤ 5× gross annual income. (2) Monthly loan cost (interest + amortisation) at the stress-tested rate ≤ ~60 % of net monthly salary (SIFO-based living-cost figures are deducted). (3) Equity ≥ 15 % of purchase price (10 % with a BSU housing savings account). The monthly cost uses the classic annuity formula: A = P·r/(1−(1+r)^-n), where r = monthly rate and n = number of months. Repayment terms up to 30 years are standard; the first 5 years may be interest-only.