As a customer, you are interested in getting the best market conditions. Especially when it comes to borrowing rates, which is by far the most important banking service you have. Interest rate barriers and price comparisons are therefore useful tools when choosing a bank.
Banks are skeptical about showing off their loan rates
Both Bank Central Norway, some small banks and now North Bank, prefer to come by the bank and ask for a loan offer before they will give you the loan interest rate.
One may wonder why North Bank does not advertise with its terms if they are so sure that you will be satisfied? Either way, it must mean that they actually have good conditions, but only want those customers who are curious enough to attend customer meetings.
The fact that leading banking players are hiding their price list is fully in line with a trend that has been going on in recent years. In competition with the Internet banks, more and more of the traditional branch banks are investing in personal service and individual pricing. This is a business strategy aimed at justifying high-interest margins and large fees, ”says CEO Sve in a comment.
All banks also offer car loans. Here it is natural that you check up on the bank you usually use. Very many banks are not interested in just giving you a car loan with a mortgage in the car.
The difference between nominal and effective interest rates can be large because car loans have high fees. Term fees are often NOK 75 a month (NOK 900 a year).
Pause for Norwegian loan rates
In a short period of time, the US central bank raised its key rate three times. However, there is little evidence that euro area countries will follow suit, writes the Financial Industry Main Organization (FNH) in a comment.
The economic upswing in the euro area countries is still moderate.
Thus, it appears that Norwegian borrowing rates may remain below the trading partners for a long time to come.
A frequently asked question about loan interest rates is as follows: How do loan rates work? What does 7% interest mean?
The interest rate is on a per annum basis, ie you pay X% interest for each year. For year number two, you then pay interest on the original amount plus accrued interest minus what you have already paid.
Moving to another bank in a situation where it is impossible to say which banks are the best is not advisable. Then you risk moving to another bank which, a little later, turns out to be more expensive than the one you have
Interest rate barometers not to be trusted
In the fall it has been very difficult to make a correct barometer, because the situation has been so unstable.
Goat’s on the road to becoming historic. – The worst is ahead of us, says senior portfolio manager Olav Chen in Storebrand Asset Management to NA24.
Borrowing rates are rising
Innovation Bank raises interest rates by up to 0.25 percentage points.
After North Bank decided in mid-August to raise interest rates by 0.25 percentage points, Innovation Bank has also decided to increase interest rates by up to 0.25 percentage points.
The interest rate change is made with effect from 11 September for new loans and 1 November for current loans.