I den grad boligverdien stiger, faller belåningsgraden.

Here, i den grad means to the extent that, insofar as, or as far as.

So the sentence is expressing a relationship between two things:

• if the property value rises,
• then the loan-to-value ratio falls, to that same extent.

This expression is quite formal and is especially common in academic, legal, or financial Norwegian.

Because i den grad is more precise than når or hvis.

• hvis = if
• når = when
• i den grad = to the extent that

So i den grad does not just say that one thing happens when another happens. It says that the amount of change in one thing is connected to the amount of change in the other.

That makes it a good choice in technical or financial writing.

Both nouns are in the definite form because they refer to the specific value and the specific ratio being discussed in that context.

• boligverdi = property value

• boligverdien = the property value

• belåningsgrad = loan-to-value ratio
• belåningsgraden = the loan-to-value ratio

In Norwegian, definite forms are often used where English might also use the, especially when talking about a known concept in a specific discussion.

Because Norwegian usually writes compound nouns as one word.

So:

• bolig
  • verdi = boligverdi
• belåning
  • grad = belåningsgrad

Then the definite ending is added:

• boligverdi
  • -en = boligverdien
• belåningsgrad
  • -en = belåningsgraden

This is very important for English speakers, because English often writes similar expressions as separate words, while Norwegian usually does not.

This is because of the Norwegian V2 rule in main clauses.

The sentence begins with a fronted subordinate clause:

I den grad boligverdien stiger, ...

After that, the main clause must still place the finite verb in second position, so you get:

faller belåningsgraden

not

belåningsgraden faller

If the sentence started directly with the main clause, then normal order would be:

Belåningsgraden faller ...

Belåningsgrad is a financial term. It means the ratio between the loan and the value of the property, usually expressed as a percentage.

For example:

• property value: 2,000,000
• loan: 1,000,000
• loan-to-value ratio: 50%

So if the property value rises while the loan stays the same, the belåningsgrad goes down. That is exactly the relationship described in the sentence.

Because Norwegian often uses the present tense for general truths, rules, and definitions.

Here the sentence is not mainly about one event happening right now. It is stating a general principle:

• stiger = rises
• faller = falls

This is very similar to English, where you might also say:

If the property value rises, the loan-to-value ratio falls.

Yes, it sounds fairly formal and technical.

The combination of:

• i den grad
• financial vocabulary like belåningsgrad
• a general explanatory structure

makes it sound like something from a report, textbook, bank document, or policy text rather than everyday conversation.

In more everyday Norwegian, people might choose a simpler structure.

A more everyday version could be:

Når boligverdien stiger, faller belåningsgraden.

That means When the property value rises, the loan-to-value ratio falls.

If you want to make the proportional relationship even clearer, you could also say:

Jo mer boligverdien stiger, jo lavere blir belåningsgraden.

That means something like:

The more the property value rises, the lower the loan-to-value ratio becomes.

Because the first part is a subordinate clause placed before the main clause.

• subordinate clause: I den grad boligverdien stiger
• main clause: faller belåningsgraden

In Norwegian, it is standard to separate these with a comma. So the comma helps show where the introductory clause ends and the main statement begins.