Unfortunately, the economic outlook for spring 2023 is not very optimistic. Electricity prices, council taxes, interest and food prices – everything grows. Is it enough to just tighten the belt? Huseierne gives you 5 specific areas of the economy where you should take action. Maybe it's a good time to review your own finances?
1. Get the best home loan interest rate
Recent rate increases interest rates mean that you pay much more for a loan than a few years ago. That's why it's more important than ever to make sure you don't pay more than you have to!
Here you can see how much more expensive your mortgage has become since September 2021. – when the price increases started Stop percentages:
- 1 million in loans: NOK 21 per year - NOK 450 per month
- 2 millions credits: NOK 42 per year - NOK 900 per month
- 3 million credits: NOK 64 per year - NOK 350 per month
- 4 million credits: NOK 85 per year - 800 per month
- 5 million loans: NOK 107 per year - NOK 250 per month
All figures are after calculating the tax deduction
Although banks raise interest rate following an increase by Norges Bank its key interest rate, there is wide variation in the amount each borrower must pay. Homeowner Interest Rate Barometer informs you from month to month which banks are doing the best, so it's worth following here!
Read also: Real Estate Agent in Norway – Eiendomsmegler
Changing bank is easy. The bank you transfer to will be happy to accept you as a customer, and therefore will easily handle the vast majority of matters if you want it. Many banks have equipped their websites with a simple button that you press to start the loan transfer process.
If it still feels like a chore, remember that you may not even need to change. If it turns out that you can get better terms elsewhere, you have a very good card in your hand and you can negotiate with your own bank. They will probably do their best to keep you as a customer.
Also, keep in mind that you don't necessarily have to have all the services in the same bank.
At the end : if it's been a long time since you received a home appraisal, it's worth getting one. If house prices in your area have increased, your loan-to-value ratio may have decreased. This, in turn, can affect the amount of interest on the loan.
2. Save on groceries
Grocery prices have increased over the past six months and new prices have been announced food price increases. That's why it's more important than before to be aware of how much you spend at the grocery store.
Others manage by shopping once a week . Many of us don't live a structured enough life to achieve this, but remember that two trips to shopping a week with a shopping list is still better than six such trips!
If you want to proceed carefully, you can also think about which products you choose. Private labels have been on the rise recently for a reason – they are consistently cheaper than other brands.
In addition to shopping, we should all go through our food waste. Can it be reduced? Every eighth shopping bag is thrown away! This is money down the drain.
Pay special attention to the purchase of bread, fruit and vegetables, i.e. those things that are thrown away most often!
3. Remove unnecessary insurance but keep the important ones!
The New Year is a good time to review your insurance policies. For example, is the mileage of the car correct? Do you have the correct insurance value? innboforsikringen? Check whether you have the necessary insurance, and at the same time whether you have too much of it. For example, do you have insurance through your employer, meaning you don't have to take out equivalent coverage privately?
Be sure to check what you have before buying individual insurance for travel, buying electronics, etc. - here you can save a lot.
Feel free to call and see if you can get better terms with other insurance companies. Then you can negotiate with your own insurance company or switch. Just remember to compare terms so you don't get worse terms than you want.
4. View all subscriptions and automatic payouts
Are you a supporting member of a fitness network? Or maybe you pay a monthly fee for Netflix, even though you pretty much only watch HBO? Do you have an audiobook subscription that you only really used on long summer drives?
Telephone plans also change constantly and it may be a good idea to check if you have one that suits your use and needs.
5. Save on electricity costs
Obtaining the lowest possible costs electric energy is triple. You should:
1) Secure the best possible energy contract. Many energy companies sponsor the first month to make it extremely cheap, but then they increase the price in the form of subsidies. Therefore, check what is written about surcharges in the contract and choose the contract with the lowest surcharge after the introductory period.
2) Make sure you don't use too much power at once. This way you will avoid a jump up one power cell step in your net rent.
3) Remember to save on electricity. Shorter and fewer showers may be the easiest measure for many of us, but it's not always easy to get the whole family involved! If you have an older water heater, you can save money by replacing it with a new smart water heater.
The most effective way to save electricity is to reduce the need for heating. Or living in a room with a slightly lower temperature than usual, or to see if the house could be improved in any way to retain heat better.
Like us on Facebook and share our post with others. Thank you.
Source: Huseierne
Read and learn more: Support for heat pumps for beneficiaries of the housing allowance
