There is always a lot to keep in mind when taking out loans. That’s why we give you some good advice along the way. You should know that the advice we give you here applies specifically to mortgages, but also fits well with other types of loans. For most people, however, it is the mortgage that is the largest expense item.
Let’s start with the interest rate :
Probably the most important selection criterion is the effective interest rate you will get on the loan. Today’s level is therefore most important, but you must not forget how the lender has done it historically. A long period of favorable interest rates makes it likely that the lender will be favorable in the future as well. We have often seen that a lender has a low interest rate for a period, and then fall back later.
Loan size : One can safely say that it has become quite common to differentiate the size of the loan. The most common distinction goes to NOK 500,000, and in some cases 1 million. The difference is usually 0.2-0.3% between the steps. Among those who distinguish in this way, we find heavy players such as DnB, Gjensidige NOR and Storebrand. If your security is good enough, it pays to borrow 500,000 and then repay. Because then you want to keep the lower interest rate.
Fees : When the money is to be paid out
it is deducted from a processing fee and possibly a custody fee. A deposit fee is intended to cover the work on the security, but in practice it is an ordinary fee. We always combine these two fees. In addition, there is a registration fee of NOK 1,840. It is the State that accepts this and is not included in the calculation of effective interest rates.
Every time you pay off your loan, it will normally incur a termination fee (not everyone has it). The size of this may depend on how you pay the loan. Charging an unassigned account is the cheapest. Term fees are more important the smaller the loan, because the fee’s share of the loan cost increases.
More and more banks are creating their own customer programs. A customer who collects several different customer relationships (loans, payroll account, high interest account, fund shares) in a bank can get better terms on the mortgage. Most often, having a payday account next to the mortgage keeps getting better terms.
Options : Here you will look at the possibilities of choosing the payment method. How easy it is to make extra repayments on the loan, or make other changes along the way. The vast majority of lenders have become quite flexible in this area in recent years.