Traditional mortgages in Norway do not work the same way as in the US or UK. We don’t compound the interest on a mortgage.

In that regard, there is less difference between a normal mortgage and a HELOC (“flexible credit”) in Norway.

Norway: Interest is calculated on the principal during each payment period without being added to interest from previous periods. This means that you don’t pay interest on interest, unlike with compounded interest.

USA/England: Interest accrues over time and can “compound,” creating a snowball effect because you pay interest on previously accumulated interest.

This means that mortgages in Norway can be more favorable in terms of interest over time, as you only pay interest on the remaining principal, not on previously accrued interest.