Survey: One in ten Norwegians will not be able to make mortgage payments if the interest rate reaches 4%

KronerPhoto: Gorm Kallestad / NTB
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Around 300,000 Norwegians will have to sell their homes or other larger assets if the interest rate rises to 4%, according to a new survey from Danske Bank.

The survey, which YouGov has carried out on behalf of Danske Bank, will be published before Thursday’s interest rate meeting at Norges Bank. The bank is expected to further raise the key interest rate in an attempt to stem rising inflation.

The survey shows that one in ten Norwegians will not be able to afford to pay the interest and repayments on their loan if the interest rate increases to 4%, the newspaper Nettavisen writes. 

Furthermore, around 300,000 Norwegians will have to sell their homes or other larger assets if the interest rate rises to 4%.

“It is a very real scenario we are facing. The vast majority of people will not only have to deal with interest rate increases but also high price growth, such as increased food prices,” consumer economist Thea Olsen at Danske Bank warned.

Olsen pointed out that Norwegians are at the top of the world in debt measured as a share of income, close to 250%, according to the OECD. 

According to the organization’s pre-summer figures, the average debt in a Norwegian family is around NOK 3.4 million.

Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance

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