The Riksbank's announcement that the repo rate is being raised has led many banks to act. All four major banks have raised interest rates for loans with a term of three months, one year and two years. The list interest rate for a floating loan at Handelsbanken, SEB and Swedbank is now at a maximum of 2.25 percent. Even actors such as SBAB and Länsförsäkringar have raised their mortgage rates.

The banks justify their increases as their own borrowing costs have increased as the short market rates have risen. The independent analyst Tor Borg nevertheless questions whether the banks' rapid actions are really necessary.

- Although it has even been higher, the banks' margin on mortgages is historically high. Now the margins could have gone down a little, but then you restore it instead, he says.

Lower average interest rates

Anyone applying for a mortgage should also be aware of the differences between the list rates that the banks market and the average interest rates that mortgage customers actually pay. The banks have been obliged for several years to report the average interest rates customers pay and they can usually be found in connection with list interest rates on the banks' websites.

In December, the average interest rates were between 1.3–1.6 per cent, about 0.5 per cent lower than the list rates. Although interest rate hikes have not been able to break through, average interest rates show that banks have margins.

- What is important to keep in mind is that the average interest rate is the average of everyone, even those who have not bargained. You can come lower than that, says Annika Creutzer.

And despite the long-term repo rate expected to continue to climb, there is still plenty of room to bargain in the prevailing market situation.

- It slows down the housing market and it also makes the banks anxious to continue to lend. I think the competition for mortgage borrowers will be tougher, which provides opportunities to push down interest rates. It will be a better negotiating position, says Annika Creutzer.

The tip: How to bargain on the mortgage rate

Annika Creutzer's best tips for getting a discount on your mortgage.

  • Both being loyal and cheating bank customer pay off. But as a help in the decision it is always good to talk to several banks. Talk to at least three banks twice each.
  • Arguments that can confirm that you are an attractive customer usually bite on the banks. It can be about having a regular income, regular savings, taking care of your bills and not borrowing too much. For example, if you are two on the loan, it is also an argument to highlight.
  • Anyone who is going to take out the loan alone can take someone with you at the hearing to help back up. “Only that can make you stretch. It's a lot about psychology, ”says Annika Creutzer.
  • Don't agree to move your pension. "It is important that you are well aware of what you refrain from if you change your bank," says Creutzer.
Increased competition

New mortgage players, such as Mortgage and Stabelo, which offer loans in collaboration with Avanza, have also started to emerge, which increases competition against the major banks. Their interest rates are slightly below those of traditional mortgage lenders.

"They have a different financing solution for mortgages compared to traditional banks and have built up a cost-effective management that allows them to have better interest rates," says Christoffer Cederschiöld, head of the mortgage brokerage service at the comparison site Compricer.

So far, these players have a small part of the market and have some other conditions. Among other things, they approve a maximum loan-to-value ratio of between 60 and 65 percent of the market value of the home.

The interest rate the bank offers is based on several factors. In addition to the repo rate, market interest rates and competition are also of great importance, as well as how the housing market looks in the place where you live. Just because the Riksbank raises interest rates, mortgage borrowers do not have to accept an equal increase in their mortgage rates, says Annika Creutzer.

- The average interest rate does not have to go up as much as the list rates, but it depends on the customers.