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Interest Rate Cut in Norway – What Does It Mean and How Can You Manage Your Loans Better?

26.06.2025

On June 19, 2025, Norges Bank surprised everyone by cutting the key interest rate from 4.5% to 4.25% – the first rate reduction in five years. This is welcome news for people with loans in Norway, including many expats who have faced rising monthly payments and growing pressure on their family budgets over the past few years.

What benefits could you feel?

A drop in interest rates translates into real savings. For a typical family with a NOK 4 million mortgage, the monthly payment could decrease by around 800 NOK. That’s extra breathing room – more money for other expenses or savings.

What’s more, Norges Bank has signaled the possibility of further rate cuts in the coming year, potentially reducing the cost of loans even more – possibly down to 4% by the end of 2025.

 

Important: Banks don’t adjust your rates automatically

Keep in mind that banks don’t always update your loan terms right away. For example, DNB and Nordea announced that the lower rates will only take effect from August 25. This means you might not see lower payments immediately, even if the central bank cuts the rates. It’s worth following up and reminding your bank when the time comes.

 

How to stay in control of your debt?

This is where GjeldsMonitor can help – a practical tool that allows you to:

  • Gather all your loans and credit cards in one place,
  • Monitor your monthly payments and interest rates regularly,
  • Easily identify when it’s worth considering refinancing.

With a clear overview of your obligations, you gain full control over your finances and the ability to optimize your loan terms. That’s especially important now that rates are starting to drop – it could be the best time to renegotiate your loan conditions.


Thinking about extra financing for your projects? Now is a good time!

If you're planning a major purchase, renovation, or an investment in yourself or your business, now could be an excellent time to consider a consumer loan with the help of a broker. After the June rate cut, your creditworthiness may have improved – especially since you probably already received your tax settlement (skatteoppgjør), which banks take into account when reviewing applications.


By using a broker, you can quickly compare offers from multiple banks and choose the most favorable one. Remember – these services are completely free, and you get access to offers from various banks.


Apply for a consumer loan >>


If you’re thinking about a mortgage, a car loan, or refinancing your existing obligations with collateral – now may be one of the best times to take action.


Even if you’ve already tried before and were rejected by a bank or received an unfavorable offer – now is the time to try again, under better conditions.


However, it’s worth being prepared: review your loans and credit score in GjeldsMonitor – that’s the first step that increases your chances of getting approved and receiving better financing terms. Now – more than ever – smart planning makes the difference.

 

What should you do today?

  1. Check your current loans – contact your bank and ask when the lower interest rate will be applied.
  2. Log in to GjeldsMonitor to quickly see how much you’re paying and whether it’s time to refinance.
  3. If you're planning to take a loan or want to save money through refinancing, reach out to a broker to compare offers from banks in Norway. It’s crucial to stop overpaying on interest.

Plan responsibly: as rates start to fall, it's a good time to think about long-term strategy – perhaps it's time to reassess your budget, loan repayments, or investment plans.


A rate cut is an opportunity for real financial gains – but only if you take action. Don’t let banks decide for you – take control of your finances and act now.

 

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