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So much can you save by swapping a bank

Correct mortgage rate.

So much can you save by swapping a bank

PAY FOR MORE: – Most people pay too much in interest, says Rune Brunborg, General Manager of Money. no. Photo: Money.com

– People marry “with the bank and throw thousands of flaps out of the window,” says Rune Brunborg, General Manager of Money.. no.

According to a recent analysis from Money. No, it appears that we pay 0.52 percent on average on interest rates on the home loan.

The findings are based on information from users of Money. No, its interest rate calculator in the last six months, where 10. 739 people have provided information about their mortgage in the period 16. May to 16. November 2015.

Can save thousands of dollars

– Most people pay too much in interest rates. It is time that Norwegians wake up and take on the negotiating hat. If people were aware of what they could save, I think more had exchanged a bank or made a better deal with their bank. Many can save 10. 000-20. NOK 000 a year, says Brunborg.

On average, users have a rate of 2.98 per cent for the period as a whole, while the average level for the same period should be 2.46 per cent based on information they have submitted. That means they pay 0.52 percent too much compared to what they potentially can get as interest, without negotiating. Since they have an average loan of 2.4 million kroner, this gives an annual saving of around 13. NOK 000 per household.

Get Exchange Bank

However, it appears that few are willing to exchange banks. According to a survey by Norstat for Money. No, it’s only 4 out of 10 that have already exchanged a bank or are willing to swap.

Interest rate per county

Oslo 2.84

Rogaland 2.89

Hordaland 2.91

Akershus 2,91

Aust-Agder 2.96

Sør-Trøndelag 2,96

West Agder 3.03

Sogn og Fjordane 3,05

Vestfold 3.06

Telemark 3.07

Østfold 3.07

Buskerud 3.08

Troms 3.09

Møre og Romsdal 3,11

Nord-Trøndelag 3,16

Hedmark 3.19

Finnmark 3.21

Oppland 3,21

Nordland 2.23

Source: Interest rate, Money. no

Should we believe Elin Reitan, Consumer Economist in Nordea, there are several reasons for this.

– One reason is that for many, there are more conditions than just interest rates that are important in choosing a bank. For example, the Bank’s expertise and ability to offer clients good advice is considered so important that it is appropriate for the customer to continue as a customer – despite opportunities for lower interest rates from other loan institutions, Reitan explains..

She points out that good customer service is also a factor that many value highly and make many customers loyal, while others fail to trade banks because they think it’s very laborious. Something that often is not, according to the consumer economist.

There are also those who remain loyal because they have had close relationships with the bank, and specific advisors, over time.

– Others simply are not aware that they can get better conditions elsewhere. The latter illustrates the importance of having an active relationship with the terms and conditions of the agreement, whether this applies to mortgages, insurance, mobile subscriptions, electricity and so on, reitan points out.

  • Check which age group has the highest interest rate.

Slim relationship with own economy

The survey also reveals that half of respondents also do not know what rate they have and that more than 1 in 10 can not explain how much they have borrowed.

Reitan believes that many Norwegians have a somewhat bad relationship with their own finances.

– We have lagged a period of high wage growth and low interest rates. This prosperity increase has meant that many Norwegians have a somewhat slim relationship with their own finances. Despite the opportunities for big savings, many people do not take the time to check if they have the best conditions, she points out.

Should we believe the consumer economist, it’s also not uncommon to have a bad overview of your own finances and what goes in and out of the account. Get writing a budget and many people waste a lot of everyday life without being fully aware of it.

– With a little more awareness about personal finance, and some simple steps, many have a huge savings potential, Reitan believes.

How to proceed

She recommends having a chat with your bank for advice on how to make your home loan cheaper. In some cases it is possible to renegotiate interest rates.

– Many, however, do not avail themselves of this opportunity, and therefore pay higher interest rates than necessary. It can be a lot to save on having an active relationship with its terms of interest and I recommend people to review their agreements at least twice a year to make sure they do not pay more than necessary, she points out.

Brunborg agrees.

– Although the rate is much lower than a few years ago, there is no reason for this to be a sleeping pillow.

He believes you do not necessarily need to move the loan, but use what you know about interest rate differentials as a negotiation card. Often, you will get better terms, as most players stretch a lot to keep you as a customer.

– If I did not change my bank, he says.

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