The Nurses' Association's agreement with the DNB is the worst among Norway's largest trade unions, according to a survey.
Consumer service Renteradar investigated the average mortgage interest rates for 2023 for the largest trade unions in Norway.
The trade unions are led by Unio, YS and Econa, which have an agreement with Nordea. The Norwegian Nurses Association, one of DNB's clients, fared worst.
– If it is true that we face worse conditions over time compared to other associations, then it is clear that we have to do something about it, says Randi Moan-Ripper, head of the insurance office section at the Norwegian Nurses Association (NSF).
She was surprised by the results of the Renteradar survey and said they did not match her impression of the agreement.
– We have a clear dialogue with DNB that we cannot have worse conditions than other unions. “We are very cautious and follow the interest rate all the time,” she says.
In the Renteradar survey, the average interest rates are based on the weekly price list from Finansportalen, which are the interest rates reported by the banks themselves. So 52 observations for each bank and product.
Worst in two categories
A benchmark mortgage customer who was a member of Unio, YS or Econa earned an average effective interest rate of 4.638 per cent in 2023. The Norwegian Bar Association obtained an average interest rate of 4.666 per cent with Handelsbanken.
The nurses' union's average interest rate was 4.813 percent with DNB Bank, according to the survey.
The picture is also similar for younger mortgage customers. Juristforbundet, Unio, YS and Econa are at the top. Below we find the Nurses' Agreement.
Nurses received 0.17 percentage points and 0.12 percentage points higher benefit rates, respectively, in 2023 than radiographers, physical therapists, and occupational therapists, for example.
For an average loan of three million kroner, this means respectively an additional 5,100 kroner and 3,600 kroner in interest expenses in 2023, according to Renteradar.
– I want our members to get the same interest rate as others, says Moan Riiber at the Nurses Association.
She wants to speak to DNB to check if the numbers are correct.
DNB: – Coming out well
– A comparison like this would only be valid if you varied your mortgage interest by taking out a new mortgage from different banks every week during 2023, but most of us have long term mortgage agreements so the DNB interest for NSF members comes out pretty good compared to Other partnership agreements.
That's what head of personal market Ingerd Bleikley-Speten wrote for E24, when asked how she responded to the Renteradar survey.
– With the rates announced by the banks in February and March, DNB will offer the lowest interest rate among the partnership agreements for mortgages over $2 million, and the same rate offered by four out of five competitors for young borrowers and first-home borrowers, says Spitten.
She believes that the figures in the survey nevertheless confirm how difficult it is for loan customers to know what conditions apply with frequent increases in interest rates.
– In 2024, we hope that it will be easier to get an overview again, and it will be an advantage for everyone. “We are proud to sign an agreement with such an important association as NSF at DNB, and it is only natural that we would want to have a good offer for members there,” says Spitten.
Renteradar has business collaborations with Nordea and Danske Bank, two of the five banks included in the survey.
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