Norway’s largest bank cuts interest rate to below two percent – OBI Online

Norway’s largest bank, DNB, cuts Friday its fixed-rate loans for young people under 34 years and SAGA clients to under two percent.

The new stats are as follows:

Fixed interest period	Nom. rate	Eff. rate
3 years	1.99%	2.07%
5 years	2.30%	2.38%
10 years	2.95%	3.05%

– We have noted lackluster interest tying the loan for a period, and we believe that is because many now have expectations that interest rates will be even lower, says Marit Giske DNB to E24.

the country’s economists are agreed that there will be new rate cut in March, and that the probability that we get zero interest rate during the year is growing.

“with lower oil prices, weaker growth in the second half of last year, higher spreads, lower interest rates and more uncertainty there may we surmise that a March cut to 0.5 percent is as good as given, “wrote chief analyst Erik Bruce of Nordea Markets after recent figures showed sharper fall in oil investments on the Norwegian shelf than expected earlier this week.

According to DNB is the first time in recent years that the bank offers fixed rates below two percent.

– The downside by choosing fixed rates are less than ever before, says person marketing manager at DNB, Trond Bentestuen. He can not remember that “insurance” against higher mortgage interest rates have been cheaper.

Bank is not alone in such a low interest rate. Among other things also Storebrand fixed rate offer of 1.99 percent.

OBOS bank cut on his side the floating interest rate on mortgage Young and Nyboliglån to 1.99 percent earlier in the week.

Facts about fixed rate loans:
After selecting fixed rate you know exactly how much to pay each month in the time period, regardless of how interest rate changes out elsewhere in the market.

you can move with you, fixed rate loan if you move houses. It is also possible to break a fixed rate deal. If you go out on the course, you must pay extra. If you go out on the course, you get left money.

There will be loss of interest (share) if the interest rate on customer loans is higher than the current level for similar fixed-rate loans with respect. remaining duration. The difference amounts to a loss of interest for the bank. This loss of interest is called the loss of interest and must be paid by the customer.

It is purely profit (discount) if the interest rate on customer loans is lower than the current level for similar fixed-rate loans with respect. remaining duration. DNB pays interest rewards to customers who go out on the course provided that they have kept the agreement on fixed interest rates for at least twelve months.

For the customer’s loss of interest deductible by tax assessment, while interest gains are taxable capital.