§ 3-40. Reflection period (betenkningstid) for mortgages (boliglån) and mortgage guarantees (boligkausjon)

This section gives consumers applying for a mortgage a pause before they have to decide. The lender (the bank or another lender) must stand by the offer for one week. The week is counted from the day after the consumer received the offer. The idea is that the consumer should have time to assess the offer and compare it with others. The rule binds the lender, not the consumer.

The same waiting period applies when a consumer vouches for someone else's debt (personal guarantee) as security for a mortgage. It also applies to mortgage guarantees where the guarantee liability is covered by collateral or similar security. The Government may in regulations lay down more detailed rules on the reflection period for these services. An example using the law's roles: a lender sends an offer of a mortgage to a consumer. As long as the week lasts, the lender cannot withdraw the offer.

The law's definitions in § 1-7 explain the terms. A mortgage is a credit agreement (kredittavtale) secured by collateral in property that is used as a home, or that is mainly not used for business. Loans to buy or keep land and buildings are also included. A personal guarantee is a conditional obligation towards the lender in connection with a credit agreement that someone else has entered into. A lender is a service provider (tjenesteyter) that offers services covered by chapter 5 and 6.

The reflection period is linked to the right of withdrawal. Under § 3-41, the right of withdrawal does not apply to agreements covered by this section. So it is the offer period that protects the consumer here, not a deadline after the agreement has been entered into. For other agreements, the withdrawal deadline under § 3-42 is 14 calendar days. Guarantors (kausjonister) are also entitled to information about the risk of guarantee liability, see § 3-36.