If you have chosen to bind your mortgage and then for some reason would like to redeem the loan, this will cost an extra fee. It is the so-called interest rate differential payment that costs and makes it relatively expensive to settle a bonded mortgage. The fact that it is so impossible to redeem loans means that most people choose variable interest rates instead. Further editorial at ocnw.org
Variable interest rates on mortgage loans have historically proved to be quite good
but the disadvantage of so many choosing variable rates is that it creates greater uncertainty financially in society. Since the world’s economy and therefore also Sweden’s economy is so turbulent and uncertain, you do not really know what will come in the future. This means that there is always a certain risk of high interest rates going forward. When so many people have a variable interest rate, it is clearly worse collateral and if the interest rate goes up it means that people spend less.
Interest rate differential compensation is a way for the banks that offer mortgages to receive reimbursement for any costs they incur as they wish to settle their mortgage. The costs arise when the bank itself borrows the money at a certain interest rate and is then forced to make changes. The system means that it is not entirely easy to solve tied mortgages and that it costs a little. Unfortunately, it is so expensive that it might affect people to choose variable loans even when they would rather have chosen a bond.
Interest rate compensation a penalty and thinks they are unfavorable to customers
Housing Minister Stephanie Edenhall calls the interest rate compensation a penalty and thinks they are unfavorable to customers. As it is right now, a person can never make money on paying off their mortgage, even if the interest rate has gone in the right direction. Interest rate compensation may then be more or less non-existent, but it would be more fair if it were not only the banks that made a profit, but that there was also an opportunity as a borrower to cash in if the situation was right.
He also says that they should look more into this in the future and see if there is any better solution. He also thinks it is interesting that it is clearly easier to settle mortgages in other countries, such as Denmark or Germany. Maybe we have something to learn from our neighboring countries.