Before you apply for a start-up loan and grant
A start-up loan from your municipality is available to people who have long-term difficulties obtaining a mortgage from a commercial bank. This includes, among others, families with children, older people, people with disabilities, and first-time home buyers. The municipality processes your application and decides whether you are eligible for a loan.
There are two types of start-up loans:
- An ordinary start-up loan is available to people who need a stable and secure home but are unable to obtain a mortgage from a commercial bank. They may also be unable to save enough for a deposit.
- A start-up loan for first-time buyers is available to people purchasing their first home who only have a small deposit and do not qualify for an ordinary start-up loan. This loan is currently being piloted and is available only in selected municipalities.
Which start-up loan is right for you?
Not sure whether you are eligible for a start-up loan or which type of start-up loan you should apply for? Answer a few questions and we'll help you find the right application.
Go to the loan selector and apply for a start-up loan
(The loan selector is in Norwegian only)
Learn more about ordinary start-up loans
You can apply for an ordinary start-up loan in your municipality if you
- are in a family with children and need a stable and secure home
- cannot get a mortgage from a commercial bank and cannot save up enough for a deposit
- are at risk of losing your home as a result of repossession due to mortgage arrears
- face special social or health-related challenges
- are elderly and live in an unsuitable home
- have a disability and need to adapt your home
- wish to buy, build, upgrade or adapt a home in a rural municipality (“distriktskommune”)
You do not need to have saved up a deposit in order to get an ordinary start-up loan. However, you must have sufficient income to be able to make the loan payments, as well as to cover other necessary expenses.
The municipality is responsible for processing your application and calculating how much you can afford to borrow over the long term. In some cases, municipalities can provide grants as well as start-up loans. Contact your local municipality to find out more about your options.
An ordinary start-up loan can be used to
- buy a new or existing home
- adapt or upgrade a home
- build a home
- refinance an expensive loan secured against your home
Some municipalities combine the start-up loan with municipal grants for adapting homes or targeted grants for first-time buyers. Ask your local municipality whether they offer any grants. If they do, you can apply for a grant at the same time as applying for a start-up loan.
You can submit an application to any municipality, but many municipalities only grant loans to people who live in the municipality.
Learn more about start-up loans for first-time buyers
You cannot be in the target group for an ordinary start-up loan, and you must have a deposit of at least five percent of the home’s value. You must have tried to get a mortgage from a commercial bank, but either have been rejected or not have been granted a big enough loan to buy a suitable home.
As a general rule, you must not have previously owned a home. However, there are some exceptions if you need to re-establish yourself following a major life event, such as the breakdown of a relationship, the death of a spouse or partner, or being unable to work.
If you do not meet these conditions, and none of the exceptions apply to you, your application will be rejected. The person responsible for your case will let you know whether you are in the target group for an ordinary start-up loan. In that case, you will need to reapply.
The municipality is responsible for processing your application and calculating how much you can afford to borrow over the long run. In some cases your municipality may provide a grant. Contact your local municipality to find out more about your options.
A start-up loan for first-time buyers can be used to
- buy a new or existing home
- adapt or upgrade a home
- take over a home after a life crisis, such as a relationship breakdown
- build a home
This loan cannot be used to refinance another loan, since you must generally be a first-time buyer.
You can apply to any of the municipalities participating in this pilot, even if you do not already live in the municipality.
The following municipalities offer start-up loans for first-time buyers:
- Alta
- Alver
- Aremark
- Arendal
- Austevoll
- Austrheim
- Bamble
- Bergen
- Bygland
- Båtsfjord
- Drammen
- Eigersund
- Evenes
- Froland
- Gjøvik
- Grimstad
- Halden
- Hamar
- Hammerfest
- Haugesund
- Hemnes
- Herøy (Møre og Romsdal)
- Hitra
- Hjelmeland
- Hol
- Hvaler
- Indre Østfold
- Kvænangen
- Lebesby
- Lillehammer
- Lindesnes
- Lom
- Luster
- Lærdal
- Målselv
- Nannestad
- Narvik
- Nes
- Nesseby
- Nordkapp
- Nordre Follo
- Nordreisa
- Oslo
- Porsanger
- Ringebu
- Ringerike
- Sandnes
- Selbu
- Sigdal
- Skien
- Skjåk
- Snåsa
- Sokndal
- Sola
- Stad
- Stange
- Stavanger
- Stjørdal
- Strand
- Suldal
- Sunnfjord
- Sveio
- Tana
- Tjeldsund
- Tromsø
- Trondheim
- Tvedestrand
- Tysvær
- Tønsberg
- Ulstein
- Ulvik
- Vefsn
- Vegårshei
- Vestre Toten
- Vinje
- Ørsta
- Østre Toten
- Øygarden
- Ålesund
These loans have a 10-year term
Start-up loans for first-time buyers are not supposed to compete with mortgages offered by commercial banks. Therefore, you can only keep your loan with the municipality for 10 years.
After those 10 years have passed, you must refinance the loan with a commercial bank. If you have become financially disadvantaged after those 10 years, you can apply to refinance the loan as an ordinary start-up loan.
How your monthly payments are calculated
A normal mortgage term is 25 to 30 years. That is so you can afford the monthly mortgage payments.
Your monthly payments are therefore calculated as if your loan had a longer term than 10 years – usually 25 or 30 years. After 10 years, you will be left with a residual loan which you must refinance with a commercial bank.
The example below is based on a NOK 3.4 million start-up loan for first-time buyers, with the monthly payments calculated using a 30-year term.
Learn more about grants
In some cases, you may be eligible for a grant from your municipality, with or without a start-up loan. This may be an option if you are unable to borrow enough to buy a home, or if you need to adapt or improve the home you already live in.
From 2025, a separate grant is also available in selected municipalities in Finnmark for people who wish to buy or adapt a home.
Find out more about the grants available from your municipality.
How to apply for a start-up loan and grants
You must have an electronic ID if you want to apply yourself. You can log in using BankID, Buypass or Commfides.
How to obtain BankID (bankid.no)
If you cannot get an electronic ID, or prefer not to apply online, you can contact your municipality. They will explain how you can apply.
You can also get someone you know to help you apply. Find out more about applying with an assistant or guardian.
When you apply, you must document all of your income and expenses. Much of the information is retrieved automatically, but you may need to upload some attachments yourself. If you have any paper documents you can take a photo of them and upload them to your application.
Frequently asked questions
Your income and expenses determine how much you can borrow. The price of a modest, suitable home in the area in question is also very important.
The municipality is responsible for processing your application and calculating how big a loan you can afford in the long term. To find out more about your eligibility for a loan, please contact your municipality.
Municipalities use the Housing Bank’s interest rate schedule. On top of that, municipalities can add 0.25 percentage points of interest to cover their administrative expenses.
All municipalities can offer fixed-rate loans, but not all do. Contact the municipality where you are applying for a loan to find out what they offer.