– Now getting a loan in Norway will be more expensive. There was a sudden increase in a short time. It can be difficult, so it’s important to be careful, says consumer economist Magne Gundersen of Sparebank 1 to NTB.
On Thursday, Norges Bank raised its interest rate by an additional 0.25 percentage points, and the key interest rate now stands at 4.25 percent. This is the highest level since October 2008.
Experts agree that Norwegian private economies will be tested throughout the fall and winter.
Additional NOK 30,000 in interest costs
Thea Olsen, consumer economist at Danske Bank, says this increase will mean those with mortgages will have less to worry about going forward.
From June to Thursday’s rate hike, the key interest rate rose by one percentage point over three months. Simply put, this means that a family with a mortgage of NOK 4 million will have to pay an additional NOK 30,000 in interest costs per year.
She points to families with young children and first-time buyers as groups that will feel the pinch of higher interest rates.
-The higher the mortgage, the more difficult it is. “We see that those who are in the early seed stage and have high debt relative to income are often the most affected,” she says.
Olsen confirms that the impact of interest rate increases will not be clear until mid-November, as it takes six weeks from the time banks announce interest rate increases until they are implemented.
-It will get worse before it gets better
Therefore, Thursday’s interest rate increase will not take effect until a few weeks from now. However, Gundersen encourages consumers to take action now.
– Don’t wait for bills to arrive. Instead, think about what you can do today to get better advice tomorrow. This could be to reduce or eliminate waste, for example, of snuff or your daily cup of coffee. Take measures like these and get an overview of your expenses so you don’t get any major surprises, he says.
The Norwegian Bank also announced that there may be a further rate hike in December. So Gundersen believes it’s important to prepare for increased costs after winter as well.
-It gets worse before it gets better. He says those who feel tight should think again before Christmas and take care that Christmas expenses don’t overwhelm them.(conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using links that lead directly to our pages. No copying or other use of all or part of the Content may be permitted except with written permission or as permitted by law. For more terms see here.
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