Norway's biggest bank DNB raises mortgage interest rate

Robin-Ivan Capar
Robin-Ivan Capar - [email protected] • 19 Dec, 2022 Updated Mon 19 Dec 2022 13:51 CEST
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DNB has decided to increase its interest rate on mortgages and deposits. Photo by Noah Myhre Pedersen / DNB / Press

DNB, Norway's biggest bank, is raising its mortgage interest rate by up to 0.25 percentage points. The decision comes after the central bank (Norges Bank) announced it would increase its key interest rate last week.

DNB is the first among the major banks in Norway to raise mortgage interest rates as a result of the central bank's move.

"Based on Norges Bank's decision to raise the key interest rate by 0.25 percentage points at the interest rate meeting on December 15th, DNB has decided to increase the interest rate on mortgages and deposits by up to 0.25 percentage points," Ingjerd Blekeli Spiten at DNB announced on Monday.

The bank's best floating interest rate for young people who plan to buy their first home now stands at 3.89 percent.

When do the new rates start to apply?

The new interest rates apply from December 20th for new mortgages and deposits. When it comes to existing mortgages and deposits, the new rates apply from January 30th, 2023, the bank added in a press release.

Norwegian banks usually follow Norges Bank's lead.

Sparebank 1 Ringerike Hadeland raised interest rates just hours after the central bank's announcement on Thursday, and several savings banks followed suit on Friday.

On Monday, Sparebank1 SMN is also set to raise its mortgage interest rate by up to 0.25 percentage points.

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Robin-Ivan Capar 2022/12/19 13:51

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