Fana Sparebank Raises Mortgage Rate – E24

The case is updated.

Vana Sparbank is the first bank to raise interest rates after the Norges Bank raised its key rate to 0.5 per cent on Thursday.

Based on this, Vana Spary Bank decided to increase the lending rate by 0.25 percentage points. The interest rate change will take effect from December 17 for new loans, and from January 31 for existing loans, the bank writes in one stock market announcement.

At the same time, the bank stated that it will raise the deposit rate by up to 0.25 percentage points.

Interest cost increases 2500 per million

For every percentage point that the interest rate on your bank loan increases, your annual interest costs will increase by NOK 10,000 for every million you have in a loan.

If banks follow Norges Bank and increase interest rates for loan customers by 0.25 percentage points, your annual interest costs will increase by 2,500 NOK for every million you have in loans.

Thus, a NOK 3 million loan would get NOK 7,500 in increased interest costs annually, not including tax cuts. Including tax deductions, the increased interest cost will be NOK 5,840.

DNB was the first before

The DNB was the first to look for the last three rate hikes, and rate adjustments at other banks often come quickly after that. After the Norges Bank raised the interest rate from a record low of 0 per cent in October, banks raised the lending rate more than the deposit rate.

Higher interest rates mean that it will be more expensive to borrow money.

– But in reality, the cost was now zero, so I think it’s right that it costs something to borrow money, Bård Folke Fredriksen, director of the Norwegian Housing Association, told E24 after Thursday’s rate hike.