Check what the banks require for your best terms.
Looking for a mortgage and unsure how to get the best conditions?
Well, you may not meet the top conditions no matter how much you try. Simply because you do not earn enough or have enough money on account.
Treats all customers equal
But one bank is virtually uninterested in how much you earn as long as you can pay your loan. And they do not care if you try to negotiate the best conditions.
It just does not help. The only thing to decide is whether you can pay your installments and how much security you can put behind the loan.
– With us, all customers are equally good, writes communications manager at Skandiabanken, Leif-Kjartan Bjørsvik, in an email to Click. no, and elaborate:
– This means that our prices, which are open and accessible to everyone through the webpages, apply to everyone. Nor is it possible to discuss better prices with us. Everyone is treated equally.
Common people are best
At Sparebanken 1 SMN, they also have a fairly flat price structure. They do not deliberately hunt customers with high income.
– More banks are particularly interested in high-income customers, but it’s not with us, says the bank economist, Change Jo Reite, to Click. no.
– We look at common people as the best patrons. They rarely smell a smell, says Reite.
In Click. nos survey is Nordea and DnB the only banks that explicitly set minimum requirements for income and wealth to provide the best conditions.
Best rate for kidza and academics
In addition, several of the banks provide their best terms for borrowers under 34 years.
– Customers under the age of 34 have the best interest because it is a customer we can follow for many years, writes communications manager at Nordea, Unni Strømstad, in an email to Click. no.
Three of the banks have special conditions for customers who are members of employee organizations. Danske Bank has an agreement they call the Academic Agreement, Sparebank 1 has an agreement with LO members, while Gjensidige gives members of YS, Tekna or NITO 0.1 percentage points lower interest rates.
Poor service ability, higher interest rate
The dynamics of the financial market are thus consistent so that the best conditions are given to those with the best operating ability, and in some cases also the highest salary.
Could you imagine a reverse model, assuming that it would be easier for a poor economy to operate a mortgage, the better the conditions are?
– The only possibility, I think, to achieve such a model would be through political decisions, says editor and general manager Elisabeth Realfsen in the Financial Portal to Click. no and emphasizes that banks price their loan terms, among other things, from a risk assessment.
– And there is simply more risk associated with lending to those who have poor income and ability to work. That’s how the economic laws are.
She states that both risk and profitability assessments and government orders impose financial market leadership, which, among other things, leads to loans being issued from individual assessments.
– In such a situation, the collective agreements are interesting. They represent a counteract to the individual focus. So if you are a member of an employee association or the like, you should check which loan terms you can get.
The bank must explain
Reite explains that if a bank would choose to provide good conditions to one with poor payability, the bank would have to explain to its lender.
– Such a reverse model will be beyond a bank’s management practices, but at the same time, it is seen that banks try to find good solutions for those who fall outside the norms.
He adds that there may be as big challenges for those who have high income and large loans.
– In a situation where there is a marked and rapid change in service capacity, it can mean a heavy change for him, “Reite explains..
– Use the digital tools
In today’s market with very low interest rates, it may be longer between the particularly good conditions. But they exist and the tools to find them are easily available.
– My advice is to use the digital tools that exist, and in terms of the Financial Portal, banks are required to register their loan terms there, says Realfsen.
– Many may show that they have got better conditions using the digital tools, and, for example, ask their own bank the question of whether they can meet the best conditions. If they can not, one should consider whether to switch banks.
In BNBank, it is the mortgage security and the customer’s ability to control which determines the price.
In order to get the best price, it means in practice a loan amount of more than two million kroner, which is within 75% of the value-added tax (maximum 60% for home loans) and that the customer’s overall credit rating is good.
“We want to live the trend where some customer groups actually subsidize lower interest rates for others. Our customers should know that they have a bank that does not come with lock offers exclusively reserved for selected customer groups, “writes Director of Retail and Communication, Eli Ystad, in an email to Click. no.
BNBank’s lowest rate is currently 2.85 percent nominal and 2.91 percent effective.
Academic agreement gives advantage.
They offer their best interest rate, 2.8 percent nominally, to members of the so-called Academic Agreement.
Other customers receive a nominal interest rate of 3.15 percent.
“Of course, we look at both security, payability in terms of income, willingness to pay and the total customer relationship when we meet all our customers one-on-one,” explains Stian Arnesen, communications director, in an email to Click. no.
Favor customers that earn over one million a year.
DnB yields its best interest rate to those who are part of their SAGA customer program, as well as to young borrowers under 34 years.
The requirement to get the SAGA program is a minimum income of one million or a plausible fortune of two million.
In an email to Click. no, communications advisor Marit Elisabeth Giske writes that the conditions are generally expressed in terms of safety, ability to operate and risk, and the size of the loan, and whether the client has customer programs or not and which customer program.
“In addition, we also do individual reviews, and often the final prices will differ from the price list because different people have different security, income and ability to pay. Other conditions can also be included, for example, where you live and what kind of housing you will buy, “she adds.
DNB’s best interest rate is currently 2.9 percent nominal and 3 percent effective.
Members of YS, Tekna and NITO get better interest rates.
In order to get the bank’s best interest rate, the loan-to-value ratio can not exceed 50 percent of the value of the home by ordinary mortgages.
For home loans, the loan rate for best interest rates is set at 85 percent. It is also assumed that you create customer relations with the bank.
In addition to this, the bank provides an additional 0.1 percent lower interest rate to members of YS, Tekna or NITO.
Your lowest interest rate, 2.7 percent, is granted to members of these organizations. The effective interest rate is 2.79 per cent.
Higher loans have better interest rates.
Nordea gives its best terms to its Premium customers and customers under 34 years.
To become a member of this client program, you must have a minimum income of 800. 000 (1. 200. 000 for the household) or a plausible asset of at least 500. 000 kroner.
Customers with lower earnings can get top conditions if they can prove they are good payers.
In general, the bank uses the following parameters to make an individual assessment of terms:
- Mortgage size (higher loan has better interest rate)
- Proportion of mortgage vs.. housing value (above and below 75%)
- Savings. Good savers are more likely to manage their loan in a safe way.
- Work situation and education.
- Are you paying a five percent increase in interest rates? This is important in order for you to be able to live with your loan in the long term.
The best terms of the bank are 2.9 percent nominal interest rate and 3 percent effective.
All are treated equally.
At Skandiabank they have what is called product pricing, unlike customer pricing. This means that it is the borrower’s ability to pay for the loan amount in question and the amount of the loan amount in relation to the valuation rate that determines.
“This means that our prices, which are open and accessible to everyone through the webpages, apply to everyone. Nor is it possible to discuss better prices with us. Everyone is treated equally, “says Leif-Kjartan Bjørsvik, communications manager in an email to Click. no.
The lowest rate of the bank is 2.86 percent nominal and 2.9 percent effective.
Sparebank 1 Midt-Norge
LO members under 34 have the advantage.
The bank provides the best terms for borrowers under the age of 34 and who are members of the benefit program LO-Favør.
In general, the Bank considers the terms in relation to the collateral that is put behind the loan, that it is a punctual pay and how high the income is in relation to the debt.
The lowest interest rate of the bank is 2.85 percent nominal, granted to members of the benefit program LO benefit and under the age of 34.
Favors those under 34.
To get the best conditions in Storebrand Bank, you must either be under 34 or have a company pension in the company.
The latter implies that your employer has the occupational pension for his employees located at Storebrand.
The lowest interest rate is given to borrowers under 34 years. They receive a nominal interest rate of 2.7 percent on up to 85 percent of the value of the property. This corresponds to an effective interest rate of 2.78 per cent.
The employees with occupational pensions receive a nominal interest rate of 2.87 per cent and an effective interest rate of 2.95 per cent, within 75 per cent of the value of the housing. For regular customers, interest rates start at 3.55 per cent.