DNB warns: – the New rules will prevent up to 20,000 young people to get out of the housing market

financial supervisory authority of norway will tighten in on the current boliglånsregler. The authority believes that the high and increasing debt in the household sector increases the risk of financial instability.

today, one can borrow up to five times gross yearly income. Financial supervisory authority of norway proposes to lower the limit to four and a half times the yearly income, and at the same time tightening on banks ' so-called fleksibilitetskvote from 10 to 5 per cent.

This is the quota which the banks has the discretion to may provide loans even if låntageren do not meet the essential requirements.

This may mean that some 20,000 young people without wealthy parents do not get to come into the housing market next year, says cio Even Westerveld in the DNB.

WARNING: It is hard for many to get into the housing market with the new rules, says cio Even Westerveld in the DNB.

Photo: John Mjaaland / NRK

DNB has arrived at this figure by looking at how many of their own customers who would not have had loans in the year with the new regulations.

Westerveld believes the housing market is in balance, and that it's not needed to be tightened.

financial supervisory authority of norway: Necessary

financial supervisory authority of norway responds that the household debt still increases the more a household income. It is not sustainable.

Many individuals take out very high loans. It involves a vulnerability for them, and a vulnerability in total for the country, " says finanstilsynsdirektør Morten Baltzersen.

He says the loss of income, increasing interest rates or a fall in house prices are three possibilities that can create problems for the fresh låntagere.

– Can not equalize class distinctions with regulation

– it Is not a class distinctions if it is harder to get a mortgage?

– Differences in income and wealth is not something that can be equalized with a regulation on utlånspraksis. It to take up very high loans, can be doing some a disservice, answer Baltzersen.

WILL TIGHTEN INTO: Finanstilsynsdirektør Morten Baltzersen says many young people take up high loans.

Photo: Linda Soloist / NRK

Although it is today almost seems impossible to lose money by lending to the boligkjøp, history has shown that the market can change dramatically.

– 30 years ago experienced this in Norway, and ten years ago experienced it in Europe. The risk that builds up in your system, looking not necessarily the individual banks when they consider the individual lånesøknaden, " he says.

chief economist: Not concerned for the young

Innstrammingene proposed to be implemented from the 1. January 2020.

youngest son: The mean Nejra Macic in Prognosesenteret on the proposal from the financial supervisory authority of norway.

Photo: Pressefoto / Prognosesenteret

chief economist Nejra Macic in Prognosesenteret says house prices can go up in the fall because people will hurry up to take advantage of current legislation.

– In the longer term it will go down. Set in a makroperspektiv is this gladnyheter. Less growth in debt will be good news for everyone, believe Macic.

she says She is more concerned for single parents than for the young in today's housing market.

– There is no other country in the world where the young in so great a degree as in the Uk own their own home, says she.

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Date Of Update: 11 September 2019, 22:44