When you take out a mortgage, it is obviously quite important that you fix a good deal with the bank when it comes to interest rates. Mortgages cost a lot of money over time, so it is important to try to get a low interest rate. At the same time, it is not always easy to know what is good and how to go about getting good terms for your mortgage.
The interest rate map gives you a check on people’s mortgage rates
SvD has a somewhat interesting service called the Interest Map. It is basically a map of Sweden where people have had to add their own mortgages. You fill in how big a loan you have, your interest rate, when the loan was taken and some such. The loan then ends up as a marker on the map and anyone who wants to can go in and look at what people have for interest on their loans, for example in the area where they live.
The interesting thing about this service is that it allows people to compare their conditions with others and see what a reasonable mortgage rate is for them. What high interest rate do others have in the same area where I want to buy houses? What high interest rate do others who have borrowed as much money as I need to borrow? With the help of such information you can get better prepared for the bank and you have the opportunity to bargain on your mortgage.
Lucky to bargain on his mortgage
Clearly more people are bargaining on their mortgage now it has been before. This year alone, this figure has risen quite substantially, from 1.2 million bargains last year to 1.9 million (according to a SIFO survey). We Swedes bargain for a total of USD 3.7 billion on our mortgages. Which is a pretty big increase from last year when we bargained “only” 2.5 billion.
What is perhaps most interesting is that as many as 9 out of 10 actually manage to bargain on their mortgage. So it’s not as hard to bargain as one might think. It is often possible to negotiate with the bank on a lower interest rate and one should always discuss that.
But even though it almost always works out to bargain on their home loan, not everyone is trying
In fact, only 6 out of 10 actually bargain at all. Young people do it more often, while older people do not feel quite as comfortable with bargaining. It may well have to do with the fact that today there is a slightly different mentality and that today’s young people have a different view of this in comparing and chasing the best prices.
So the summary is that you should always bargain and negotiate when you take out a mortgage, it almost always goes the way. If you want some tips and help to find out how interest rates look in your area and in your size class, you can use the smart service Interest Map.
If you want to see what mortgage rates the ordinary banks and other lenders have and compare them, you can check out our own comparison of mortgages, then you get some help and can find a good bank.