Interest rate collar

Interest rate hedge without a separate fee

When your loan has an interest rate collar, you can be certain that the reference rate on your loan will not exceed the agreed maximum level during the validity of the collar. If the interest rates fall, the reference rate on your loan may fall to the minimum level of the interest rate collar. An interest rate collar can be added to a new loan as well as to existing ones.

Interest rate collar Features Prices Terms and conditions Credit Information Interest rate collar

Your benefits

  • The interest rate collar stabilises changes in the reference rates and you can be certain that the reference rate will not increase above the agreed level. 
  •  The interest rate hedge can be taken for a shorter period than a housing loan, as the amount of interest makes the most difference at the beginning of the loan period when the loan principal is high. 
  • During the validity of the interest rate hedge the reference rate will not exceed the agreed maximum level. If the interest rates fall, the reference rate of your loan may fall to the minimum level of the interest rate collar.
  • The bank charges no separate hedging fee for the interest rate collar.Interest Rate Collar
Features
  • You can take out an interest rate collar for a housing loan or some other loan the reference rate of which is the 12  Euribor.
  • The minimum loan amount is 15,000 euros and the minimum loan period 10 years.
  • The minimum and maximum levels are determined finally at the time you draw down the first instalment of your loan and they can deviate from the levels you have previously discussed with the bank.
  • When you wish to link a reference rate collar to an existing loan, you may do so when you have drawn down the loan in full.
Prices
  • You do not pay any separate fee for an interest rate collar.
  • Contact Nordea Customer Service or any Nordea branch to find out at which reference rate the current interest rate collar on sale is offered.
Terms and conditions Credit Information

Standard European Consumer Credit Information

To make comparing easier, the applicant has the right to receive the key information on the credit on a Standard European Consumer Credit Information form before signing the credit agreement. The information on the form may be calculated with the details given by the customer or on typical values. The form on this page is calculated with typical values, which means that a typical euro amount for this credit type is applied.

The form specifies the lender's contact information, the main features of the credit product, the costs, other important legal aspects and, if needed, the additional information required for distance selling.The information on the form may be binding or unbinding on the lender. A binding form requires a positive credit decision.

Standard European Consumer Credit Information (pdf, 192 KB)Opens new window

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.