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Which Norwegian banks are raising interest rates? 

Frazer Norwell
Frazer Norwell - [email protected]
Which Norwegian banks are raising interest rates? 
These are the banks in Norway raising interest rates. Pictured are homes in Bergen. Photo by Lieuwe Terpstra on Unsplash

Interest rates in Norway are increasing, and several banks have announced hikes, meaning more expensive repayments for loans and mortgages. Here are the banks that have announced raises. 

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Last week, Norway’s central bank, Norges Bank, announced that the key interest rate was being raised 0.5 percentage points to 1.75 percent. 

The double rate hike, the second since June, was announced to try and slow down inflation. Norway’s consumer price index (CPI), which measures inflation, increased by 6.8 percent between last month and July 2021, figures from national data agency Statistics Norway (SSB) show.  

For many households, however, the most immediate impact of the key rate being raised will be banks raising interest on loans and mortgages. 

Several banks in Norway have already announced that they’ll raise rates following Norges Bank’s decision.

Norway’s largest bank, DNB, has announced that it will raise interest rates on mortgages by 0.5 percent. The interest on deposit and saving accounts will also be raised by 0.5 percent. Customers with a BSU account will receive an interest rate of 4.05 percent.

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The new interest rates will apply to new mortgages and deposits with DNB from August 23rd and existing loans and mortgages from October 6th.

Fana Sparebank has announced rates would be raised too. The bank has already raised interest by 0.5 percent for new loans and mortgages, with rates for existing customers rising from October 5th. 

SpareBank 1 Østlandet, Sparebanken Sør, Sparebank 1 Østfold Akershus and Jæren Sparebank have announced rates will be raised by up to 0.5 percentage points. Like other banks, changes will take effect from October for existing customers, the reason being that banks need to give customers sufficient notice following a key rate hike. 

Sparebanken Vest has also followed suits and raised rates

SpareBank 1 SR-Bank and Sparebank 1 Nordmøre also noticed that loans and mortgages would be going up. It said it would contact customers to let them know how much mortgage rates were rising. 

Nordea has announced that interest rates will be adjusted upwards by up to 0.5 percentage points on all mortgages also. 

What does it mean for my finances? 

If you were to have a mortgage or loan of 4 million kroner at an interest rate of 2.5 percent over 25 years and your bank has issued a notice that it will raise interest rates by 0.5 percentage points, then your monthly repayments will increase by 996 kroner. 

Looking further ahead, Consumer economist Thea Olsen at Danske Bank Norge told Norwegian newswire NTB last week that she expects the rate for a mortgage to be around four percent by the end of the year. 

A rate of four percent would mean yearly repayments of 40,000 kroner for every million owed. A mortgage for 4 million would equate to interest repayments of 16,000 kroner per year. 

READ MORE: What Norway’s latest double interest rate hike means for your finances

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