Banks can raise mortgage rates in the future, even though the interest rate is kept unchanged so far.
Norwegian central bank, Norges Bank has kept its key interest rate at record low 0.5 per cent since March 2016, and experts expect it to remain low, so far.
Nevertheless, banks will soon be able to increase mortgage rates because it will be more expensive for banks to borrow money, writes NTB.
“When the borrowing cost of the banks rises, we expect this to affect their customers, so the mortgage interest rates increase,” says chief economist Kari Due-Andresen in Handelsbanken to NRK.
Although interest rates may rise both in Norway and internationally, it is still historically cheap to take loan.