Many taking loans for housing under the Corona crisis

Living roomLiving room.Photo:Pixabay

Low rent has led to an increase in the demand for housing and refinancing loans, as reported by Norges Bank in its lending survey for the second quarter. 

The report from Norges Bank was made public on Thursday afternoon. The banks are reporting an increase in the demand for Housing loans after they first expected a significant decrease after precisely this in the first quarter, which was characterized by the Corona outbreak and the restrictions that were introduced to limit the spread of infection. 

At the same time, the interest rate has significantly declined  and Norges Bank’s key interest rate is now at 0 percent.  In Thursday’s report, Norges Bank wrote that margins on mortgages has increased. 

-” increase focus on low interest rates have also led to an increased demand for refinancing loans and bank changing,  as it states in the report.”

In parallel with the increase of lending, the use of installment exemptions also increased, especially at the beginning of the quarter and for people who were laid-off or lost their jobs due to the Corona situation. However, this demand diminished as many returned back to work. 

© NTB Scanpix / #Norway Today


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