September 28, 2022

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Big banks raise mortgage rates by as much as 0.25 percentage point - E24

Big banks raise mortgage rates by as much as 0.25 percentage point – E24

A few days after the Norges Bank rate hike, several major banks announced that mortgage rates would rise.

Cuts in the portfolio: This year’s high interest rates will be marked on the portfolio.
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Both the DNB and Nordea announced on Monday that they would raise interest rates.

-Based on Norges Bank’s decision to raise its key rate at its March 24 interest rate meeting, the DNB has decided to adjust the mortgage rate by up to 0.25 percentage point, Ingjerd Blekeli Spiten, DNB’s head of retail, says in a statement.

The new rates apply from April 4 to new mortgages, and from May 13 to existing mortgages.

DNB also raised the deposit rate by as much as 0.25 percentage points, Director of Communications Vibeki Hansen Lewin told E24.

The best floating rate would be 1.99 percent for a BLU Start — a loan for young people under 34 who are going to buy their first home, she says.

Nordea follows suit

The message comes after Norges Bank Raising the interest rate by a quarter of a percentage point to 0.75 percentand announced another seven interest rate increases by the end of 2023.

Norges Bank expects mortgage rates to double from the current level of about 2% to 4% in 2024. However, the central bank does not believe that deposit rates will increase as much, so that deposit-financed loans will be more profitable.

On the other hand, the interest rate differential in the money market has increased, which has led to higher borrowing costs for banks. Norges Bank assumes that this premium will decrease somewhat in the future.

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In many cases, you can negotiate better interest rates if you call your bank or change bank. Sindre Noss at Renteradar, a consumer service where you can compare interest rates on mortgages, believes that a fixed rate of interest should now be considered.

– As a mortgage customer you can now actually make a deal if you peg the interest rate, but it pays to be quick

Regional banks are rising in both the south and the north

Nordea follows the DNB, and raises interest rates on mortgages and deposits. The interest rate on mortgages has been increased by up to 0.25 percentage points.

– In light of Norges Bank’s decision to raise its key rate at a rate meeting on March 24 and developments in interest rates in the money market, Nordea has decided to adjust interest rates on mortgages and savings accounts, says Randy Marjama, Head of Retail. Market in Nordea, Norway.

On the deposit side, the interest rate is increased by up to 0.25 percentage points.

We are witnessing a strong development in the Norwegian economy, where companies report a tight labor market and expectations of high wage growth, and at the same time many experiences indicate that the prices of some goods and services are rising rapidly. We are in close contact with challenging clients, says Marjama.

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New interest rates will apply to existing loans from May 9, 2022, for new loans, interest rates will apply from March 29, Nordea announced.

Sparebank 1 Nord-Norge was the first bank That reported higher mortgage rates this time. The increase is 0.25 percentage points and applies from Monday, March 28 to new loans, and from May 6, 2022 to existing loans.

The bank has not yet decided what to do with the deposit rate.

Sparebanken Sør also reports that mortgage and deposit rates will be raised by up to 0.25 percentage points. The interest terms for new loans are effective from March 30th. The interest rate on existing loans will be changed from May 11, and deposits from May 30.

Sparebank 1 Nordmøre announced Tuesday morning that they will raise mortgage rates to 0.25 percent from May 10, 2022, and for new loans from March 31, 2022.

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