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Swedish leads the Nordic in terms of high mortgage rates
Monday, 28 May 2012
Swedes pay about twice as high on variable mortgage rates by households
in the Nordic countries right now. In Denmark, the short term interest
rate is well below two percent.
According to the Swedish National Housing Credit Guarantee Board, BKN
which presented data that was comparable with other Nordic countries,
mortgage rates for up to one year terms in Sweden, Finland and Denmark
since the first January 2008, show a marked variation in their
The report shows that Sweden has the highest variable mortgage rates.
The Swedish interest rates drop an average to 4.15 percent in March.
This compares with 1.67 percent in Denmark and 2.11 percent in Finland.
"The figures are broadly comparable. Denmark has a slightly different
system for the long-term maturities, but for short-term rates, it does
not matter, "said Bengt Hansson of BKN.
Statistics show that interest rates can vary quite considerably between
the three countries. In 2009 and early 2010, Sweden had the lowest
interest rates. But since the fall of 2010, the Swedish interest rates
took off and increased by more than 4 percent, while the Danish and
Finnish have consistently been below 3 percent.
A reason for this difference is partly due to the Swedish banks with
higher funding costs. While the Swedish repo rate is 1.5 percent,
Denmark and Finland, have their key rate at 0.6 percent and 1 percent
By scancomark.se Team
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