4% interest loans ends at Totalkredit

From Wednesday, Totalkredit is removing the 4 percent interest loans with repayments as the price went above 100. Now, borrowers have to opt for the newly introduced 3.5 percent loan, says Brian Friis Helmer of Arbejdernes Landsbank. The move is good for first-time homebuyers and existing homeowners with higher rate loans, allowing for cheaper borrowing. Homeowners with 5 or 6 percent loans could benefit from a rate fall. A notable rate dip is needed, however, for it to pay off for those on 4 percent loans to refinance – known as conversion. Despite 2022’s higher rates prompting many to switch to more expensive monthly payments to reduce their debt, Helmer doesn’t foresee a surge in refinancing to 3.5 percent until the price gets closer to 100.