Right now we are in a low interest rate environment, this is a situation we have never had before with such low interest rates. The question one can ask is whether the banks have room to make some money on mortgages when interest rates are so low.
The banks have increased their margins
I saw this short video from SVT that sums up the situation very well, the movie is 1 minute long.
Thus, when interest rates have gone down, the banks have succeeded in increasing their margins, without us as borrowers noticing that much for our interest costs have nevertheless fallen. But this means that there is more room to squeeze interest rates now compared to before.
One reason why banks succeed in raising their margins is that we as borrowers do not expose banks to competition by comparing interest rates between different banks. There is also inherent resistance from some to switch banks just to lower their interest costs. We have changed banks once to get better interest rates. It requires some paperwork and you change some debit cards etc. but it is not very difficult actually. Especially not if you know you will save money doing it!
I wrote a little neighbor about what you can do in my post increase your savings on the home.
It is repeated that a first step is to make a survey of the banks’ average interest rates on Compricer, for example. Not satisfied with the interest rate you have today and your current bank not willing to give you a better offer? Then I would take the help of Good Finance that helps you ask several other banks what they can offer you for interest. You fill in an application on Good Finance’s website and their service is free.
So you don’t have to call yourself. Otherwise, you can of course call around yourself and ask several different banks what they can offer you. When Good Finance receives answers from several different banks, you get an offer with the best interest rate and you can now consider if you are interested in moving your mortgage.
If you do not want to change your bank, you can always use the offer you received from Good Finance to bargain with your current bank. Show that you can get better elsewhere and challenge your bank! Good Finance is super-flexible, requires minimal time and the potential to save a lot of money is great!
Lowering your mortgage costs
You may not want to change your bank or are interested in lowering your mortgage costs. The alternative to still winning from the match might be to buy the banks’ shares on the stock exchange to take advantage of their profits? Then you get to take advantage of their increased margins.
Good luck! Hope you can succeed in lowering your fixed expenses to be able to get more money from investing in your cash machine!