Buying a home

Pregnant woman with partner 

Moving plans

Apply for a loan proof before going to viewings

Read more about loan proof
First home Changing homes Housing loan products Interest rate hedging Insurance First home

We will go through your situation and tailor you a housing loan that suits your needs. The housing loan will be granted according to your income, expenses and security for the loan. When the housing loan is scaled to your repayment ability, you can afford to enjoy life - in the best case you will also be able to put some money aside. To live your everyday life without worries, turn to us for advice in housing loan matters. Contact us already today.

"What is the maximum I can afford to pay for a new home?"

Loan payments are not the only costs you need to consider when adding up your monthly housing expenditure. Your overall financial standing is decisive, and first of all you should go through your monthly expenditure: how much can you afford to spend on housing and still live a full life? 
Make a budget with our calculatorOpens new window .

"Would a loan promise help me?"

If many people are interested in the same home, you should act fast. With the loan promise you are one step ahead of other buyers, as it allows you to make an offer right away when you find "just the right one".

"The home of my dreams - did I miss something?"

Consider all your monthly housing costs: your loan, maintenance charge or possible charge for financing costs and the water, electricity and heating costs. You should also find out about future renovation plans and assess their effect on the housing costs. It is advisable to consider if you should pay your share of the housing company loan (charge for financing costs) with a housing loan. By doing so, you will have the power to affect the monthly payment and the payment terms. When you are prepared for possible changes, such as a rise in interest rates, you get leeway for the unexpected changes in your life. Be sure to have your home insured.

As an owner-occupier you will accrue your wealth. You can repay your housing loan nicely with an amount corresponding to a monthly rent.

ASP ("asuntosäästöpalkkio" in Finnish, i.e. home saving bonus) is an easy and safe means of saving for young people. It is a government-subsidised scheme intended for purchasing a first home.

"For whom is ASP saving meant?"

If you are aged 18 - 39 years and planning to buy your own home, you should consider saving in an ASP account. You can start saving by making an agreement with the bank on ASP saving.

"How much will I have to save?"

To be eligible for an ASP loan, you must make at least eight deposits of 150 euros at minimum to your ASP account at three months' intervals. In practice, this means that you will have to save at least 50 euros a month during a period of two years. Did you know that your saving can also be supported by others? Your parents, for example, may make deposits to your ASP account.

ASP account accrues tax-exempt interest of 1%. You will also get an additional interest of 4% for the opening year and for the five following years. The objective is that you would save 10% of the purchase price of your future home.

If your life situation changes, you are not required to spend your ASP savings for purchasing a home. 

"What is an ASP loan like?"

As a first home buyer you get beneficial loan terms. When you have saved 10% of the purchase price of your future home to your ASP account, we will lend you the rest. The interest on an ASP loan is lower than on corresponding new housing loans. If the interest exceeds 3.8%, the state will pay part of the loan interest as subsidised interest during the first ten loan years.

"What kind of security do I need?"

You will get a free guarantee from the state for your ASP loan, and you will not need any other security besides the home you buy. 

Read more about the ASP loanOpens new window.

A housing loan is usually repaid monthly. Besides the loan instalment, you pay interest that consists of the reference rate you have chosen and the margin.

The reference rate options for a housing loan are: 

  • 12-month Euribor
  • Nordea Prime
  • Fixed rate for 3, 5, 10 or 15 years (quoted on the drawdown date)

     

Repayment methods

You can repay your housing loan in many ways: in equal payments, equal instalments or fixed equal payments. The choice of the repayment method depends on many things, such as whether you want to pay the same amount every month or whether you prefer paying off the loan within a specific time period.

Equal payments if you want to know exactly what your loan period will be

When you choose equal payments as your repayment method, your loan period will not change but the monthly payment will change according to the reference rate. The shares of the instalment and interest will be the same at first. As the loan period passes, the share of the instalment will increase.

Equal instalments if you want to speed up your repayment 

When you choose equal instalments as your repayment method, the share of the instalment will remain the same. With time, the euro amount of the interest will decrease as the loan principal becomes smaller. The monthly payment will change according to the reference rate.

Fixed equal payments if you want your monthly payment to remain the same

When you choose fixed equal payments as your repayment method, all the payment amounts will be the same. The interest rate will affect your repayment pace: if the reference rate rises, the loan period will become longer, but if the reference rate falls, the loan period will shorten.

Flexibility for your loan repayment with FlexiPayment

 

FlexiPayment can be added to a new loan as well as to existing ones. When you have FlexiPayment linked to your housing loan, you can decrease or increase the monthly instalments on your loan – or even skip them without notifying us. However, you will always have to pay the interest. The use of FlexiPayment requires that the payments are debited from your account automatically. 

You must visit a Nordea branch to conclude a FlexiPayment agreement. After that you can change the loan instalment amount in Netbank within the limits agreed in advance. The usual maximum FlexiPayment amount is 10% of the loan. 

You must visit a Nordea branch to conclude a FlexiPayment agreement. After that you can change the loan instalment amount in Netbank within the limits agreed in advance. The usual maximum FlexiPayment amount is 10% of the loan.

FlexiPayment cannot be linked to an ASP loan. 

Ease your repayment with a payment holiday

You must agree on a payment holiday with the bank in advance. For example, you can send an application through Netbank. During the payment holiday you only pay interest and do not amortise the principal. This will extend your loan period or increase future payments. Changing the repayment schedule is subject to a fee set in our tariff.

Interest rate collar suits you if...

  • you want to ensure that the interest expenses on your loan stay within certain limits  
  • you appreciate the possibility to make flexible changes to the loan's repayment schedule  
  • you do not wish to pay separate fees or cancellation costs.

     

Interest rate cap suits you if...

  • you want to choose a short reference rate 
  • you want to hedge at least part of your loan against rapid changes in the reference rate. 


Fixed interest suits you if you want to know the amount of the monthly payment in advance

It is recommendable to fix the interest on half of the loan amount and to hedge the rest with an interest rate cap or interest rate collar, if necessary.

You may have to pay cancellation costs.

Security secures the repayment of a loan to the bank. The standard security value is 75% of the value of the home.

You may need further security for the rest of your loan: 

  • For the remaining part (20% at maximum) you can take an OwnGuaranteeOpens new window. In addition, you will need your own savings or other security for the remainder.
  • You can take out a partial state guarantee for a maximum of 10%, so besides that you will need other security or own funds.
  • The price of an OwnGuarantee and partial state guarantee depends on the amount of the guarantee. When you use your own funds to finance a home, the required additional security is smaller and the expense is lower.
  • Additional security may consist of real estate, flats, securities and other assets that can easily be converted into cash. In some cases a personal guarantee is also possible.
Changing homes

We will go through your situation and tailor you a housing loan that suits your needs. The housing loan will be granted according to your income, expenses and security for the loan. When the housing loan is scaled to your repayment ability, you can afford to enjoy life - in the best case you will also be able to put some money aside. To live your everyday life without worries, turn to us for advice in housing loan matters. Contact us already today.

When it is time to change homes, your first thought may be the location of your future home and the number of rooms, a balcony or a garden. Next you should think about a suitable price range and a housing loan.

Tips before you take a housing loan: 

  1. Apply for a loan amount according to your repayment ability. 
  2. Remember that interest rates may rise. 
  3. Also note that the repayment method will affect the total costs of your loan. 

Seize the opportunity

When you hit the right home, you should act fast. Contact us, we are happy to help.

A housing loan is usually repaid monthly. Besides the loan instalment, you pay interest that consists of the reference rate you have chosen and the margin.

The reference rate options for a housing loan are: 

  • 12-month Euribor
  • Nordea Prime
  • Fixed rate for 3, 5, 10 or 15 years (quoted on the drawdown date)

     

Repayment methods

You can repay your housing loan in many ways: in equal payments, equal instalments or fixed equal payments. The choice of the repayment method depends on many things, such as whether you want to pay the same amount every month or whether you prefer paying off the loan within a specific time period.

Equal payments if you want to know exactly what your loan period will be

When you choose equal payments as your repayment method, your loan period will not change but the monthly payment will change according to the reference rate. The shares of the instalment and interest will be the same at first. As the loan period passes, the share of the instalment will increase.

Equal instalments if you want to speed up your repayment 

When you choose equal instalments as your repayment method, the share of the instalment will remain the same. With time, the euro amount of the interest will decrease as the loan principal becomes smaller. The monthly payment will change according to the reference rate.

Fixed equal payments if you want your monthly payment to remain the same

When you choose fixed equal payments as your repayment method, all the payment amounts will be the same. The interest rate will affect your repayment pace: if the reference rate rises, the loan period will become longer, but if the reference rate falls, the loan period will shorten.

Flexibility for your loan repayment with FlexiPayment

 

FlexiPayment can be added to a new loan as well as to existing ones. When you have FlexiPayment linked to your housing loan, you can decrease or increase the monthly instalments on your loan – or even skip them without notifying us. However, you will always have to pay the interest. The use of FlexiPayment requires that the payments are debited from your account automatically. 

You must visit a Nordea branch to conclude a FlexiPayment agreement. After that you can change the loan instalment amount in Netbank within the limits agreed in advance. The usual maximum FlexiPayment amount is 10% of the loan. 

You must visit a Nordea branch to conclude a FlexiPayment agreement. After that you can change the loan instalment amount in Netbank within the limits agreed in advance. The usual maximum FlexiPayment amount is 10% of the loan.

FlexiPayment cannot be linked to an ASP loan. 

Ease your repayment with a payment holiday

You must agree on a payment holiday with the bank in advance. For example, you can send an application through Netbank. During the payment holiday you only pay interest and do not amortise the principal. This will extend your loan period or increase future payments. Changing the repayment schedule is subject to a fee set in our tariff.

Interest rate collar suits you if...

  • you want to ensure that the interest expenses on your loan stay within certain limits  
  • you appreciate the possibility to make flexible changes to the loan's repayment schedule  
  • you do not wish to pay separate fees or cancellation costs.

     

Interest rate cap suits you if...

  • you want to choose a short reference rate 
  • you want to hedge at least part of your loan against rapid changes in the reference rate. 


Fixed interest suits you if you want to know the amount of the monthly payment in advance

It is recommendable to fix the interest on half of the loan amount and to hedge the rest with an interest rate cap or interest rate collar, if necessary.

You may have to pay cancellation costs.

Security secures the repayment of a loan to the bank. The standard security value is 75% of the value of the home.

You may need further security for the rest of your loan: 

  • For the remaining part (20% at maximum) you can take an OwnGuaranteeOpens new window. In addition, you will need your own savings or other security for the remainder.
  • You can take out a partial state guarantee for a maximum of 10%, so besides that you will need other security or own funds.
  • The price of an OwnGuarantee and partial state guarantee depends on the amount of the guarantee. When you use your own funds to finance a home, the required additional security is smaller and the expense is lower.
  • Additional security may consist of real estate, flats, securities and other assets that can easily be converted into cash. In some cases a personal guarantee is also possible.
Housing loan products

Housing loan

Apply for a housing loan that suits your needs from Nordea

With Nordea's housing loan you can realise your dreams – buy a home, build a house or purchase an investment property.

ASP loan (ASP account)

Save 10% of the price of a new home in an ASP account, and we will lend you the rest

You can open an ASP account if you are aged between 18 and 39.

OwnGuarantee

An OwnGuarantee helps you to acquire a home with a small start capital

With an OwnGuarantee, you need less savings for financing a new home, and you may not need any other security for your housing loan.

FlexiPayment

FlexiPayment can be added to a new loan as well as to existing ones

When you have FlexiPayment linked to your housing loan, you can decrease or increase the monthly instalment on your loan – or even skip the instalment for a month without notifying us.

HomeFlex

Large purchases with a small monthly payment

Is your home in need of refurbishing or is your housing company planning to renovate its plumbing? HomeFlex will free up your home equity so that you can realise your.

Pay your own share of a housing company loan

Does the charge for financial costs you are paying your housing company seem too high?

If you take your share of the housing company loan in your own name, you get two advantages: you can tailor the monthly payment to suit your finances and you get a tax benefit.

Interest rate hedging

Rising interest rates may increase your loan servicing costs. Have you thought about keeping them under control with an interest rate hedge? See below three different ways to hedge rising interest rates. We will be happy to help you to find the one that suits you best.

Interest rate collar

Stability to reference rate changes without a separate fee

The interest rate collar is a new kind of interest rate hedging product with which you ensure that the reference rate on your loan stays within the agreed limits and will not exceed the agreed maximum level during the validity of the hedge. You can link the interest rate collar either to a new loan or your existing loan.

Interest rate cap

Don't let the interest on your housing loan get out of hand

With an interest rate cap, you can make sure that the reference rate on your loan will never exceed the agreed maximum level. An interest rate cap can be taken for an old or a new loan.

Fixed interest rate

When your loan has a fixed interest rate,

you will know the exact amount of your monthly instalments during the fixed interest period.

Insurance

Have your new home insured with Nordea If Home Insurance

Nordea If Home Insurance helps you in unexpected situations at your home and holiday home. You will always get a customised insurance solution with adequate cover against accidents. 

Nordea If Home InsuranceOpens new window 

  • Covers all it should, and you will not pay for anything you do not need.
  • Valid during removals and travels throughout the world.

You can also use your home insurance to have your pet insured against an illness or accident.

Advice on housing

Man sitting thinking by house 

Interest rate hedging makes life secure

With the right interest hedging products, you can protect your finances even when market interest rates change drastically.

Woman looking out of window 

Two alternatives

FlexiPayment gives you leeway for your monthly loan repayment. Another alternative is to extend your instalment-free period. See which one suits you better.