August 11, 2022

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DNB increases the mortgage rate by up to 0.25 percentage point

DNB increases the mortgage rate by up to 0.25 percentage point

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

DNB is the first major bank to choose to raise the mortgage rate after yesterday’s interest rate decision. Fana Sparebank was the first among Norwegian banks, reporting a similar rise in interest rates as DNB on Thursday afternoon.

All DNB customers who receive a change in the interest rate will receive information about this at the bank via the Internet or by mail. The new interest rates are effective from Friday, December 18th for new customers, and effective January 28, 2022 for existing customers.

On Friday afternoon, Nordea will follow too. The bank raises interest rates on mortgages by as much as 0.25 percentage points. The interest rate is correspondingly increased on the deposit side. New interest rates will apply to existing loans from January 28, 2022, and for new loans, interest rates will be applied from December 20.

– In light of Norges Bank’s decision to raise its key rate at a rate meeting on December 16 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, in a press release.


Vana Spary Bank is the first bank to issue: Mortgage rate hike by 0.25 percentage point

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Track smaller banks

When big banks like DNB raise interest rates, smaller banks often follow quickly.

Shortly after the DNB announced the withdrawal, Sparebanken Vest announced that it was adjusting its lending and deposit rates by up to 0.25 percentage points. For existing customers of the bank, the interest rate change is effective from 1 February.

Sparebank 1 Østfold Akershus soon followed, and decided to increase the interest rate on loans for private and corporate markets accordingly. At the same time, the bank announces that it will adjust the interest rate on deposits in the private market by up to 0.15 percentage points. According to the bank, the best indicative mortgage rate would be 1.74 percent for first home loans after termination.

Sparebanken Sogn og Fjordane is also raising mortgage rates by up to 0.25 percentage points, and deposit rates by up to 0.20 percentage points.

Sparebank 1 Ringerike Hadeland, Sparebank 1 SMN and Sparebanken Møre are raising interest rates on loans and deposits by up to 0.25 percentage points.

Sparebank 1 SR-Bank is adjusting mortgage rates by 0.25 percentage point. Sparebank 1 Nordmøre does the same.

In line with the improvement in the economy this fall, money market interest rates have also risen. This means that the bank’s own costs of borrowing money have gone up. So we adjust mortgage rates, says Roger Lund-Antonsen, executive vice president of retail at Sparebank 1 SR-Bank.

Sparebank 1 Østlandet not only raises the interest rate on loans, but also by 0.25 percentage points.

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New high in March

Norges Bank’s prime rate is crucial to what you have to pay on your mortgage. This is the interest rate that banks pay on their deposits with Norges Bank and will be the leader in relation to the interest rates that the bank offers you. Quite simply, when the central bank adjusts the interest rate, mortgage costs will rise and vice versa.

During the pandemic, interest rates were slashed to a record low as a result of the economic downturn that followed the coronavirus outbreak. The key rate was raised for the first time to 0.25 in September, and a new hike was announced in December in December.

However, there was a lot of uncertainty over whether the Bank of Norway would implement a rate hike on Thursday, as higher electricity prices and the spread of the new omikron virus variable created greater economic uncertainty.

But there was a rally, and at the same time, the Norges Bank indicated that the key policy rate could rise further as early as March. Towards the end of 2024, the Bank of Norway estimates that the interest rate will be 1.75 percent. This will happen through three increases in 2022, two increases in 2023 and a final increase in 2024.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.

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Worked until Norges Bank rate meeting – agreed to raise interest rates

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