Interest-only period

An interest-only period means that you do not make loan repayments for a certain amount of time. Only interest and costs. In other words, you only pay the costs of having a loan and postpone repayment of the loan itself.

An interest-only period can be of great help if, for various reasons, your household income reduced for a period. However, be aware that the total cost of the loan increases when using an interest-only period.

With one year’s interest-only period on a loan with a 25-year term, you pay less per month the next year since you don’t have to pay instalments.

When the interest-only period is over, the monthly costs are higher than they were originally, since you will now have to pay off the loan in 24 years instead of 25 years. Example: With a home mortgage of NOK 2 million with an interest rate of 2.04%, the total cost increases by NOK 17 000.