An average household with two children will have NOK 3,000 less to travel with per month next year, according to a calculation from Nordea. Mother of small children Tuva Helene Aaslid and her family have already started to notice the price increase, and have started preparing for a 2023 with less to worry about. The family must make some financial priorities in the coming year. A total mortgage of NOK 5 million will become significantly more expensive with all the interest rate increases. With the mortgage alone, the family gets between NOK 6,000 and 7,000 in extra expenses per month. – It will be tough. We do what we can to be economical, says Aaslid to news. Interest calculator The calculator uses the formula for annuity loans to calculate your monthly costs. Nominal interest is used here. This means that there will be an additional transaction fee which will vary from bank to bank. Today’s interest rate is taken from DNB’s mortgage interest rate for young people, and different banks will have different interest rates. The figures given here will therefore be approximate for you. Monthly expenses are interest and repayments combined. Read more about sources and reservations here. See how much you have to pay if the interest rate increases. Randi Marjamaa, head of the personal market at Nordea, says that many Norwegians will face a tough economic year. – Many people will have to adjust their consumption to be able to handle the situation, she says. Doubling in the number of applications for interest-free installments Several have taken measures to try to deal with the situation, including by applying for interest-free installments. This year, Nordea has had a doubling of customers who have applied for exemption from instalments. – It had doubled since last spring, and has gradually increased over the autumn, says Marjamaa. Free installments means that for a period you do not pay installments on the loan, only interest and costs. In other words, you only pay the costs of having a loan, and postpone the repayment of the loan itself. Marjamaa believes it is not always the right solution. Freedom of installments should ideally be used in a situation where you have a temporary increase in expenses, or an urgent situation occurs, for example being made redundant. – If there is a permanent increase, as interest rates now indicate, then one should ideally adjust consumption, and rather save the grace period, says Marjamaa. Policy rate in percent The policy rate is set eight times a year by Norges Bank. The policy interest rate governs the interest rates in the banks, and affects your housing costs. The aim of raising the interest rate is for the high prices to come down again. The forecast tells us how Norges Bank thinks interest rates will develop in the future. Read more about the electricity charges and when you get electricity support here. Higher interest rates mean increased expenses if you have a mortgage I think we can overcome inflation In 2023, consumption will decrease. Norges Bank, which raised the interest rate on Thursday, thinks so. Consumer economist Hallgeir Kvadsheim points out that with the interest rate increases, it may appear that inflation has been overcome. – I think we are facing a tough winter and spring, but then I think the end of the year 2023 will be easier, says Kvadsheim. He also does not think it is wise to apply for exemption from installments if it is to keep consumption up. – It can be a bad resting pillow for people.
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An average family can get NOK 3,000 less a month – news Norway – Overview of news from different parts of the country
