Eased mortgage regulations can cause housing prices to soar by up to 60 percent over the next four years. The Norwegian Financial Supervisory Authority is now warning of the effect of the government's decision to reduce the requirement for own contribution when buying a home, from 15 to 10 percent.
Norway already has the most indebted households in the Western world. The eased loan regulations can, together with skyrocketing housing prices, further increase the debt mountain and thereby create financial uncertainty, warns the financial authority.
