A NAV guarantee and a Keyhole deposit guarantee both give the landlord financial security without the tenant paying a cash deposit. The difference is who provides the guarantee, who can get it, and how you apply.
A NAV guarantee is part of financial social assistance. You apply through NAV in your municipality, and it is intended for people who are entering a tenancy and are unable to raise the deposit on their own.
A Keyhole deposit guarantee is a commercial product. You pay for the guarantee, the application is digital, and it requires your landlord to be a Keyhole partner and to invite you to apply.
Both have this in common: the landlord has to accept a guarantee instead of a cash deposit, and the tenant remains responsible for what they owe.
In short:
- NAV guarantee: applied for through NAV in your municipality, as part of financial social assistance.
- Keyhole Guarantee: you pay for the guarantee, and the application has to be approved.
- Both require the landlord to accept a guarantee instead of a cash deposit.
- Keyhole additionally requires the landlord to be a Keyhole partner and to invite you.
- The tenant remains responsible for unpaid rent and damage either way.
- Deposit and guarantee combined cannot exceed six months’ rent.
What is a deposit guarantee?
A deposit guarantee is an agreement in which a third party provides financial security for an agreed amount on the tenant’s behalf.
If the landlord has a valid claim, for example unpaid rent or damage beyond normal wear and tear, the claim can be directed at the guarantee provider instead of being taken from a deposit the tenant has paid in.
The guarantee moves the liquidity, not the responsibility. If a valid claim arises, the tenant is the one who pays it, either in full or through a payment plan. If the tenant does not pay, the provider pays the landlord and the claim follows the tenant.
Norwegian tenancy law allows the parties to agree on a guarantee instead of a deposit. Deposit and guarantee combined cannot exceed six months’ rent.
What is a NAV guarantee?
A NAV guarantee is financial social assistance towards a deposit. NAV states that help with a deposit is usually given through a guarantee, but that financial support towards a deposit in a blocked deposit account can also be given.
The help is relevant when you are entering a tenancy and are unable to raise the deposit yourself.
How to apply
You apply for a deposit guarantee through the application for financial social assistance at NAV in your municipality. NAV assesses the application based on your situation and finances.
Allow time for processing. Contact NAV as early as possible in your home search, and confirm with the landlord that a guarantee can be accepted before you sign the tenancy agreement.
What does the guarantee cover?
The amount and the duration are agreed between NAV, the tenant and the landlord, and are set out in the guarantee document. Read it together with the landlord, so both parties know which claims are covered and what deadline the landlord has for submitting a claim.
The law firm HELP Forsikring writes that municipal guarantees often cover up to three months’ rent, that the deadline for submitting a claim is commonly two to four weeks after the tenancy ends, that many guarantees cover rent rather than damage, and that the guarantee is usually time-limited. This varies between municipalities, so the guarantee document is what governs a given tenancy.
What is a Keyhole deposit guarantee?
Keyhole Guarantee is a digital deposit guarantee for tenants approved by Keyhole.
Instead of placing the full deposit in a blocked account, the tenant pays for the guarantee. The landlord gets security for the agreed amount, and the tenant keeps their savings available for moving, furniture and the first month’s rent.
The guarantee is provided through Nordic Guarantee. Keyhole is registered as an insurance agency and is supervised by the Danish Financial Supervisory Authority (Finanstilsynet). The deposit guarantee itself is not insurance for the tenant.
Two conditions have to be in place: the landlord must be a Keyhole partner and invite the tenant to apply, and the application must be approved. Approval is based partly on a credit assessment.
The price depends on the rent and the deposit amount. Ask your landlord or Keyhole what applies to your tenancy.
If a valid claim arises, the tenant pays it to the landlord, or agrees a payment plan. If the tenant does not pay, Keyhole pays the landlord and the claim follows the tenant.
The main differences
The landlord has to accept the guarantee either way, and the tenant is responsible for valid claims whichever solution is chosen. Here are the differences point by point.
Who provides the guarantee?
NAV guarantee: NAV in your municipality.
Keyhole Guarantee: Nordic Guarantee, arranged through Keyhole.
Who can get it?
NAV guarantee: tenants entering a tenancy who are unable to raise the deposit themselves.
Keyhole Guarantee: tenants invited by a landlord who is a Keyhole partner, and who are approved.
How to apply
NAV guarantee: through the application for financial social assistance at NAV.
Keyhole Guarantee: a digital application after an invitation from the landlord.
What does it cost the tenant?
NAV guarantee: means-tested support, confirm the terms with NAV.
Keyhole Guarantee: the tenant pays for the guarantee, and the price depends on the rent and the deposit amount.
How long does it take?
NAV guarantee: NAV processing time, so make contact early.
Keyhole Guarantee: a digital application, and the answer depends on approval.
What does it cover?
NAV guarantee: whatever is set out in the guarantee document, often rent.
Keyhole Guarantee: whatever is set out in the guarantee terms, up to the agreed amount.
Is the tenant still responsible?
NAV guarantee: yes.
Keyhole Guarantee: yes.
Does the landlord have to accept it?
NAV guarantee: yes.
Keyhole Guarantee: yes, and the landlord must also be a Keyhole partner.
What should the tenant consider?
The starting point is the same for both: the landlord decides which form of security is required, and has to accept a guarantee before it can replace a cash deposit.
These questions help:
- Does the landlord accept a guarantee instead of a cash deposit?
- Am I entitled to financial social assistance towards a deposit?
- How much time is there before move-in?
- Is my landlord a Keyhole partner?
- What does the guarantee cover, and what deadline does the landlord have for submitting a claim?
- What happens if the provider pays a claim to the landlord?
If you are entitled to financial social assistance, NAV is the natural place to start. If you have a steady income and a landlord who already uses Keyhole, Keyhole Guarantee is the fastest route to a signed tenancy agreement.
What should the landlord consider?
For the landlord the question is the same whoever provides the guarantee: does the document give the tenancy the security it needs?
Go through these points before accepting a guarantee:
- Who provides the guarantee
- What amount the guarantee covers
- Which claims are covered
- How and when the guarantee is closed
- What deadline applies for submitting a claim
- How a claim is submitted, and what documentation is required
- What happens if the tenancy is extended
The chosen form of security should be described clearly in the tenancy agreement. If the parties choose a cash deposit instead, the money must be held in a lawful, blocked deposit account in the tenant’s name.
Frequently asked questions
Can I apply for a NAV guarantee and a Keyhole guarantee at the same time?
You can look into both, but only one guarantee is provided for the tenancy. Confirm with the landlord which form of security is accepted before signing the tenancy agreement.
Does the landlord have to accept a guarantee?
Yes. The landlord decides which security is required, and a guarantee can replace a cash deposit when both parties agree to it.
Am I still responsible if the provider pays the landlord?
Yes. If there is a claim, you are the one who pays it, either in full or through a payment plan. If you do not pay, the provider pays the landlord and the claim follows you.
Do I get back what I pay for a deposit guarantee?
Normally no. The amount is the payment for the guarantee, and it gives the tenant the option of keeping their savings available instead of paying in the full deposit.
How much security can the landlord require?
Deposit and guarantee combined cannot exceed six months’ rent.
How long does a NAV guarantee take?
It varies between municipalities. Contact NAV as early as possible in your home search, and tell the landlord you are waiting for an answer.
Can I use Keyhole if my landlord does not already use it?
The landlord has to be a Keyhole partner in order to invite you. Point your landlord towards Keyhole and we will get in touch.
Find the right deposit solution
Are you a tenant?
Ask your landlord whether a deposit guarantee can be used for your tenancy, and contact NAV if you are entitled to financial social assistance towards a deposit.
Are you a landlord?
Book a free, no-obligation call with Emma to see how you can offer a deposit guarantee to your tenants.
Sources
- NAV: Financial social assistance (Økonomisk sosialhjelp)
- NAV: Deposit and guarantee for a deposit
- Tenancy Act § 3-5
- Tenancy Act § 3-6
- Husleietvistutvalget: Deposit and guarantee
- HELP Forsikring: Municipal deposit guarantee
- Keyhole Guarantee
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