DNB adjusts interest rates on home mortgages

DNB has today decided to increase interest rates on home mortgages by up to 0.25 percentage points. “After a long period of historically low mortgage rates, it is not surprising that interest rates are now on their way up,” says Ingjerd Blekeli Spiten, head of Personal Banking in DNB. 

“A number of factors affect the interest rates customers pay on their home mortgages.
Norges Bank has long been expected to increase its key policy rate at its monetary policy meeting on 20 September, partly due to the signals given by the central bank itself. This has resulted in higher money market rates for some time,” says Ingjerd Blekeli Spiten. 

“Although interest rate increases raise borrowing costs, the current interest rate increase has been expected and announced for a long time. Consequently, we believe that most borrowers are prepared for this," says Ingjerd Blekeli Spiten. 

“We will still have competitive home mortgage rates after this adjustment and will continue to give priority to low interest rates for young people entering the housing market and customers with a home that qualifies for green home mortgages,” says Spiten.

For existing customers, the interest rate adjustments will become effective as of November 4th 2018. All customers whose interest rates will be adjusted, will receive a letter by regular mail or information in the Internet bank by the end of next week, explaining how their mortgage will be affected.

The new best indicative interest rate will be 2.30 per cent for first-time home buyers and customers with green home mortgages. 

For further information, please contact:
Even Westerveld, EVP, Corporate Communications, tel. no. (+47) 400 16 744
Rune Helland, Head of Investor Relations, tel. ( 47) 23 26 84 00 / ( 47) 977 13 250 

This information is subject to the disclosure requirements according to Section 5-12 of the Norwegian Securities Trading Act.