– We have looked back to 1820, and believe this will be the lowest mortgage interest rate in Norwegian history, says customer director Kjartan Reve in Sparebanken Øst to Dagens Næringsliv.
As is well known, the key policy rate has been lowered previously as a result of the corona crisis, and at the last interest rate decision, it remained at 0 per cent.
This has slowly but surely led to lower mortgage rates in the banks.
Now the competition is intensifying further, and on Friday Sparebanken Øst claims that their mortgages will have “the lowest interest rates in Norwegian history” – at 1.1 and 1.2 per cent, respectively. It was DN (requires login) who mentioned the case first.
Previously, the bank must have had a mortgage interest rate of 1.49 per cent.
– Through corona, we at Sparebanken Øst have chosen to be reticent when it comes to growth. But now is the time to use the competitiveness we have and challenge the big banks, says Reve.
Demand interest rate cuts
Great competition among the banks and low key interest rates are definitely good reasons to either change banks or demand interest rate cuts in our own bank, something the experts recommend – and which we have also tried ourselves successfully.
In July this year, the council from the Consumer Council said that everyone with a mortgage interest rate of more than 2 percent should change bank or negotiate with their bank, writes NTB.