That is why it is so important to clean up your tax return before the New Year
If you are thinking of refinancing, building on your house, buying a holiday property or simply borrowing more money, it is very important that your tax return is as tidy as possible.
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If you currently have several different small loans and credit cards under “debt” on your tax return, it makes sense to combine these into one loan. When you apply for a new loan next year, your new tax return will look much better to the bank that will receive your application. If you have many small loans, it is easy for the bank to think that you do not have financial control. Then they may choose to say no to the application, instead of saying yes. If you have combined these small loans into one consumer loan, your finances will look much tidier.
The other advantage is that you can save a lot by combining different credits into one consumer loan and refinancing the interest. Then the interest rate is often lower, up to 10% lower. In addition, you will have fewer bills to deal with, and you will save a lot on all the installment fees small loans have. A customer will get a much higher mortgage if the expenses for consumer loans and credit cards are reduced.
Four different credit cards with a balance of 50,000 on each, with an effective average interest rate of 22.90% cost approx. NOK 4,306 every month for 10 years. By pooling together a loan of NOK 200,000 with an average interest rate of nom. 14.15% / eff. 15.52%*, the same money will cost you approx. NOK 3,167 per month for 10 years, or you can reduce the term by more than four years. In total, over the loan’s term of 10 years, you will save NOK 136,636 by refinancing!
*term fee NOK 30, establishment fee NOK 900.
When refinancing, the term must be equal to or shorter than the one you have today, up to 15 years. The maximum term for new loans is 5 years.
NOK 225,000 over 9 years with eff. interest of 14.17%, cost NOK 162,347 Total NOK 387,347. Max. effective interest rate 35.5%.
Repayment period for refinancing: up to 15 years, depending on the repayment period of the loan to be refinanced.