Norway’s key policy interest rate has been raised from 0.5 percent to 0.75 percent by Norway’s central bank, Norges Bank.
As a result, several banks and lenders have raised their interest rates meaning higher repayments for those with loans and mortgages. For every quarter a percentage point, the interest rate on your bank loan rises, your annual interest costs will increase by 2,500 kroner for every million you owe.
An interest rate of 0.75 percent means yearly repayments of 7,500 kroner per million of debt. So, for example, if you have a loan or mortgage of four million, the annual interest costs will be around 30,000 kroner per year.
Two of Norway’s biggest banks, Nordea and DNB, have said that they will be raising interest rates.
DNB will be hiking rates by 0.25 percent from April 4th for new mortgages and from May 13th for existing mortgages. The bank will also be raising its deposit rate by 025 percentage points. The bank said that its best floating interest rate was for those on its BLU start offering, a mortgage for first-time buyers under 34. You can check out DNB’s interest rates here.
Nordea has said that it is increasing rates by the same amount. The changes will happen for those who already have a mortgage from May 9th or March 29th for new mortgages.
Sparebank 1 Nord-Norge was the first bank to raise mortgage rates. As with the other banks, it will be raising rates by 0.25 percentage points. The changes are effective from March 28th for new customers and May 6th for existing ones.
Sparebanken Sør also said it was raising rates. The new terms apply for new mortgages and loans from March 30th. The rates for existing customers will change on May 11th for Mortgages.
Sparebank 1 Nordmøre said it would raise Mortgage rates from 0.25 percent.