The Financial Supervisory Authority of Norway has published its 2026 mortgage lending survey, showing that new borrowers’ average total debt rose to 333% of annual income. This was an increase of 4 percentage points and the second consecutive annual rise, although the ratio remained below its 2022 peak. A larger share of lending went to borrowers near or above the debt limit of five times annual income, while more mortgages approached the 90% cap on lending relative to property values. The concentration of mortgages near that cap increased further after a substantial rise in 2025, following the increase in the maximum permitted ratio from 85% to 90% at the end of 2024. Average lending relative to property values remained at 66% for new repayment mortgages and fell to 45% for new revolving credit facilities. Among first home buyers, average debt declined from 380% to 376% of income, but average mortgages increased from 77% to 79% of property values. About 60% of loans to this group exceeded the former 85% ceiling. The share of loans granted to borrowers with negative monthly cash flow after normal expenses and a stress test applying a 3 percentage point interest rate increase remained around 2%. The share with weak but positive monthly buffers of up to NOK 4,000 declined slightly. Young borrowers received a larger share of loans granted under banks’ flexibility quotas, which permit lending to creditworthy customers that departs from one or more regulatory requirements.
Financial Supervisory Authority of Norway reports new mortgage borrowers’ average debt rising to 333% of income
The Financial Supervisory Authority of Norway’s 2026 mortgage survey found that new borrowers’ average debt reached 333% of annual income, with a greater share of lending near or above the limit of five times income. Mortgages also became more concentrated near the 90% cap relative to property values. The share of loans to borrowers with weak cash buffers after interest rate stress declined slightly.