DNB adjusts interest rates on home mortgages

DNB has today decided to increase interest rates on home mortgages by up to 0.2 percentage points. “After a period of historically low mortgage rates, there are many indications that the bottom has been reached," said Trond Bentestuen, head of Personal Banking Norway in DNB.

“A number of factors affect the interest rates customers pay on their home mortgages, and our considerations reflect both the competitive situation and money market rates. Both these factors now indicate that the bottom might have been reached after a period of historically low interest rates on mortgages in Norway,” says Trond Bentestuen.

“We have recently noticed changes in the market, and some banks have already raised their floating mortgage rates. We will continue to offer competitive interest rates after this adjustment and we are experiencing a high level of activity in the housing market many places in the country. We see that customers request fast processing of loan applications as there is strong competition in the housing market in certain areas in Norway,” says Bentestuen.

For existing customers, the interest rate adjustments will become effective as of 9 January 2017. A letter will be sent to all customers whose interest rates will be adjusted, either by regular mail or in the Internet bank, by the end of next week, explaining how their mortgage will be affected.

The best indicative interest rate will be 2.05 per cent for first-time home buyers.

Press contacts:
Even Westerveld, EVP, Corporate Communications tel. no. (+47) 400 16 744
Thomas Midteide, group executive vice president, Corporate Communications, tel. no. (+47) 962 32 017