Combination Loan

The advantage of a fixed-rate loan is primarily that your finances are not affected if interest rates rise.

You know exactly what your home loan expenses will be for a period ahead. The disadvantage is that your expenses do not decrease if interest rates fall. It is important to be aware that you have committed to paying the fixed interest rate for the entire agreed fixed interest rate period, even if the general interest rate level drops.

Therefore, consider a fixed-rate loan if you are thinking long-term and want predictability in your finances. Alternatively, you can combine fixed and variable interest rates. This way you achieve predictability on the fixed-rate loan, whilst also benefiting from movements in the variable rate, and full flexibility for extra payments or full early repayment on the variable rate loan.

If you break out of the agreement before the fixed term has expired, you risk having to pay a premium, which in turn will result in increased total costs.

A fixed-rate loan has special terms that make it slightly less flexible than a standard mortgage. If you terminate the loan during the fixed term, this may incur costs, and you cannot increase or repay the loan as it suits you.

If you make changes or terminate the fixed-rate loan before the agreement period is over, the bank will perform a calculation that may result in you having to pay the bank a so-called premium. This is done so that the bank does not lose money on the change. This will be the case where the interest rate level for new fixed-rate agreements has fallen below the fixed rate you have on the loan during the fixed interest rate period. In the opposite case, you may receive money back from the bank (discount).

The right to any interest rate gain (discount) only arises when the loan has had a fixed interest rate for an uninterrupted period of one year before the time of calculation of the interest rate gain. The limitation does not apply in the event of sale of the customer's mortgaged property, debtor change due to relationship breakdown, or the borrower's death.

If you wish to make extra repayments on the fixed-rate loan portion during the agreement period, you should contact us first to check whether there is a premium or discount on the loan.

On the variable rate portion of the loan, you can make payments whenever you wish.

Premium and discount may arise if you make changes to the loan - settle the loan, make an extraordinary payment, receive interest-only period(s) or extend/shorten the repayment period - before the fixed interest rate period has ended.

Premium (interest loss):If the interest rate on new fixed-rate loans is lower than the interest rate on your fixed-rate loan, the difference represents a loss for the bank. In the comparison, we look at new fixed-rate loans with a fixed-rate period that corresponds to the remaining lock-in period you have on your loan. If you break the fixed-rate agreement before the fixed interest rate period is over, you must pay the interest loss. The same applies if you make extra repayments on the fixed-rate loan or make changes to the repayment plan.

Discount (interest gain):If the interest rate on new fixed-rate loans is higher than the interest rate on your fixed-rate loan, the difference represents an interest gain. In the comparison, we look at new fixed-rate loans with a fixed-rate period that corresponds to the remaining lock-in period you have on your loan. The main rule is that you receive the interest gain if it has been more than one year since you fixed the interest rate.

You can deduct interest loss/premium on your tax return, whilst interest gain/discount is subject to tax.

No later than six weeks before the end of the fixed interest rate period, you will receive information from us that the fixed period is about to expire. If the loan has not been repaid, you can choose between switching to a variable rate or entering into a new fixed-rate agreement.

We reserve the right to change the interest rate until we have received a signed offer.

Complete terms and conditions are shown in the loan documents you will receive upon ordering. In most cases, you can sign.

In most cases, it is possible to transfer the fixed-rate loan to a new property if you move house. The criterion is that the loan-to-value ratio for the fixed-rate loan in the new property must be the same or lower than when the loan was granted.

When you apply for a mortgage, we process information about your income, debt and assets. We obtain information directly from you, from our internal systems and from public registers.

From our systems, we retrieve information about application, payment and transaction history for loans, credit and accounts that you hold with us. We can connect you to Altinn (the Norwegian digital portal for dialogue with public agencies) so that the Norwegian Tax Administration receives your consent to disclose information about income, debt and assets.

We may also obtain an overview from the Debt Register of your unsecured debt, information about property details from the Norwegian Mapping Authority, as well as taxable income from the previous year and payment remarks from credit reference agencies. You will receive information from credit reference agencies when the information has been obtained from them. Our processing of the aforementioned information forms part of an automated risk assessment process.

The processing is necessary to comply with both regulatory requirements and safeguards our own legitimate interest in managing our own risk and hedging a sound economy and payment capacity among our customers. In addition, we are legally obliged to protect ourselves against money laundering and financial crime. If you object to our processing, we cannot process your loan application, but you always have the right to correct information that is incorrect.

When we grant loans, DNB is an obliged entity to the authorities. When we decline loans, we register this with us in order to be able to notify about the rejection and possibly subsequently document the matter. Registered information about a rejection may affect your future applications.

DNB Bank ASA (the Bank) and DNB Boligkreditt AS (Boligkreditt) have joint data controller responsibility for personal data. This means that your information will be available to both the Bank and Boligkreditt during both the application process and after the loan has been established.

The Bank and Boligkreditt are obliged to comply with requests for correction of any errors and on their own initiative delete information that is no longer necessary. The Bank is obliged to assess objections to the processing of personal data and must always comply with reservations against direct marketing. Boligkreditt does not have marketing as a purpose when processing personal data.

Read about how you can exercise your data protection rights in our privacy notice / What are your rights" and contact information under "Questions and complaints".

DNB's Data Protection Officer (DPO) can be contacted by email at personvernombudet@dnb.no or by regular post: DNB, c/o Data Protection Officer (DPO), PO Box 1600 Sentrum, 0021 Oslo