Six out of seven banks reduced their margins during the third quarter. This marks the third consecutive quarter of declining bank margins. On average, the margin for a standard loan with a 3-year term and 50 percent loan-to-value stands at 208 basis points, down by 12 basis points from the second quarter.

Despite the recent increase in long-term rates over the past week, the 5-year rate remains 40–50 basis points lower than in the second quarter. For the bulk of new loans, the total interest rate—including a 5-year fixed rate—is now 5.8 percent, which is 0.6 percentage points lower than in the second quarter.

Do you want to know more about the findings from the banking survey? Please contact Robert Nystad at nystad@union.no or 906 19 758.