Danske Bank raises the mortgage interest rate – E24

The bank follows its competitors in raising interest rates, after the increase made by Norges Bank last week.

Danske Bank sets the interest rate on mortgages at 0.25 percentage points.

On deposits, the interest rate is increased by up to 0.25 percentage points, the bank said in a letter.

– With today’s interest rate adjustment, we are adapting to the change in the key interest rate and the market situation, says Martine Budd Fife, Head of Personal Markets at Danske Bank Norge.

Yesterday, a number of banks raised interest rates on real estate loans and deposits.

Big banks like DNB, Nordea and Handelsbanken raised their shares at the same pace that Danske Bank is doing now. Several other banks opted for more cautious mortgage loan increases of up to 0.15 percentage points.

These increases come after interest rates were raised by Norges Bank just over a week ago. The central bank surprised the market and economists when it raised interest rates by 0.25 percentage points. Norway’s key interest rate is now 4.5 percent, the highest level since 2008.

Banks must notify interest rate increases 8 weeks before they take effect. Therefore, the changes to mortgages in recent days will not take effect until mid-February.

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