Since 2018, banks' gross margin on mortgages, that is, how much they are withdrawing on the loan, has fallen slightly, from 1.71 percentage points in December 2017 to 1.37 two years later. This is the lowest figure since 2014, according to the Swedish Financial Supervisory Authority. But from a historical perspective, it is still high. According to Frida Bratt, the high gross margin opens for increased competition in the mortgage market.
- What is a bit nice is that the interest rate hike in December became a water divider where large players raised mortgage rates, while the small players did not increase to increase their competitiveness.
Biggest expense
Housing costs are often a household's largest single expense. According to the comparison site Compricer, Avanza / Stabelo has the lowest mortgage rate with an average interest rate of 1.27% over three months. At most, Länsförsäkringar has 1.82% in three months.
According to Fredrik Nordquist, a lawyer at the consumer organization Consumer Banking and Finance, one should not just think about the interest rate when choosing a mortgage.
- First you have to think about what kind of consumer you are. Do I want everything under the same roof, or am I so that I can easily divide this into different actors? If you have everything gathered in the same place, it may be easier to negotiate favorable terms. If, on the other hand, you divide it up into different players, you can benefit from a start-up with good offers on individual products.
Follow the market
Fredrik Nordquist says it is important to be observant of what is happening in the market.
- You can look at how comparisons of banks' average rates on mortgages are. If you pay more than the average interest rate, you can ask why. Is there a reason or is there an opportunity to negotiate it down or change supplier?