– We often get questions about whether it helps to change banks. The answer is yes. And the higher the loan you have, the more you can save. That’s what Inger Lise Blyverket says. She is director of the Consumer Council. To the surprise of many, Norges Bank raised the key interest rate once again on Thursday. It is now at 4.5 percent. This means that most people will experience a mortgage interest rate of around 6 per cent. – This was not the pre-Christmas gift everyone with a mortgage had believed and hoped for, exclaimed chief economist Kyrre Martinius Knudsen at SR-Bank. 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 sources and reservations here. A higher policy rate means increased expenses if you have a mortgage But there is no automatic mechanism in the bank, the interest rate must be raised because the central bank does it. Several banks have announced that they will not increase the interest rate for customers. This applies to Askim & Spydeberg Sparebank, BN Bank and Sparebank 1 Hallingdal Valdres. – We expect that many banks will follow suit and not raise the interest rate. There are several people who think Norges Bank is taking it too hard, says bank manager Emil Inversini. Recommends New Year’s resolution It has been 15 years since the last time interest rates were as high as they are now. The Consumer Council now hopes that more banks will follow suit and drop interest rate hikes, so that there can be better competition between the banks. – It will give us consumers better conditions, says Blyverket. The Consumer Council believes that more people should consider switching banks, because there can be a lot of savings. Director of the Norwegian Consumer Council Inger Lise Blyverket thinks people should make it a New Year’s resolution to review the agreements they have with their bank. Photo: John Trygve Tollefsen For many people, it is precisely the mortgage that takes a particularly big bite out of their income. The Consumer Council’s Switching Survey for 2023 shows that only one in four switched or renegotiated banking services in 2022. – You can save some money by choosing affordable items in the grocery store. You can save a lot of money by getting better terms on the mortgage, says Blyverket. As an illustration, the director points out that if you have a mortgage of NOK 3 million, you save NOK 15,000 a year on an interest rate improvement of 0.5 per cent. – That is a lot of money for most of us. – A good and profitable New Year’s resolution can be to sit down and go through the agreements you have with your bank, she continues. 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. The banks can hijack customers The Norwegian Consumer Protection Authority encourages everyone with a mortgage to use their consumer power. – Contact the bank and demand better conditions. If you get a negative answer, you should consider switching. For the bank, there may therefore be customers to gain by not raising the interest rate. At least according to Sparebank 1 Hallingdal Valdres, which also dropped the interest rate hike in September. They are open about the fact that the bank is now noticing an influx of new customers, including to Finansavisen: – We have had a large influx of new customers in recent months, and that is great, says CEO Knut Oscar Fleten.
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– Stupid to pay more than you have to – news Norway – Overview of news from different parts of the country
