Erna Solberg will not remove tax on mortgages – Aftenposten

Erna Solberg will not remove tax on mortgages – Aftenposten

Several economists have asked the government to remove tax benefits arising from high mortgage debt. But Solberg is skeptical to make drastic changes in the tax overnight.

– Precisely such changes within gross tax would exacerbate the housing market crash in the late 1980s and early 1990s, she says NTB.

– More gross tax while more were unemployed, did some of the bottom fell out of the housing market. It gave quite major upheavals, she adds.

Ten days

Finance Jensen (FRP) gave FSA ten days to consider measures to slow the growth in housing prices. Monday is the deadline there, and Jensen can expect a letter from the Authority during the day.

FSA has refused to share with NTB what proposals go out on, but several economists have come up with guesses. Chief economist Harald Magnus Andreassen think it would come proposals for stricter requirements for debt repayment.

– People with little equity will be required to pay higher monthly installments until the loan is down to a certain level, he told Aftenposten Saturday.

Economy Professor Ola Grytten at NHH think it may be necessary to increase equity requirement further.

– Alternatively, banks will be required to increase its capital requirement, he said NTB earlier this month.

Interest Meeting

This week, Norges Bank according to the experts put down the policy rate. It would hardly curb people borrow zeal.

– The historically high debt burden and high house prices have helped to keep the policy rate higher than it otherwise would be mean analyst Kjersti Haugland DNB Markets.

Finance Jensen (FRP) says this combination increases the risk of financial instability.

– If many households have problems then it is not only painful and difficult for the individual. Then it ultimately also a major social problem. Therefore we must be precautionary, said Finance Minister Aftenposten weekend.

Worried

Prime Minister Erna Solberg (H) says she is concerned that individuals borrow too much. Meanwhile, she emphasizes that the vast majority have control of its economy and can cope with a higher interest rate.

– The biggest danger is that too many chances on that house prices are only going to increase. It should not be reckoned with, says Solberg.

She has the following advice to come with:

– Although it is cheap to borrow right now, it is important to think carefully own finances before tempted to borrow more money.

Published: March 16th. 2015 5:43