The interest difference compensation is the fee that the banks charge from those who want to pay off a fixed mortgage early.

The Financial Supervisory Authority announced earlier this year that the government should review the rules, which according to the authority favor the banks at the expense of mortgage borrowers.

Now the government has tasked Albin Kainelainen, director general of the Norwegian Economic Institute, to analyze the design of the compensation and investigate whether it affects whether bank customers choose a variable or fixed interest rate.

"Can be felt by households"

"The rising interest rates and inflation are hitting Swedes' wallets hard.

Households can feel it.

As we now move towards economically tougher times, it is important that we review what we can do in the longer term to strengthen both individual households and the economy as a whole," says Financial Markets Minister Max Elger (S) in a statement.

The hope is to achieve greater mobility in the mortgage market.

"The interest difference compensation could be a factor that makes many people choose loans with a short fixed interest period when they had wanted to fix their interest for a longer period.

It is important that banks are not overcompensated through this fee," says Max Elger.

Javascript is disabled

Javascript must be enabled to play video

Read more about browser support

THE INTEREST: Several households risk a double whammy when mortgage rates rise