Repayment method affects your monthly payment, loan period and interest expenses
The repayment method of your home loan means the way you will repay your loan. You will select the method when you negotiate on a loan with us. The interest on your home loan changes when the value of the reference rate changes, which will affect either your monthly payment or loan period, depending on the repayment method you have chosen.
Since the monthly payment always includes the instalment and interest in a certain proportion, the choice of repayment method also decides this proportion and affects the interest expenses accruing during the loan period.
Which repayment method should I choose?
When you’re choosing the repayment method, you should consider the choice from different aspects, such as whether you want to pay the same amount every month or whether you prefer to pay off the loan within a specific time period.
You will decide on the repayment method when we negotiate on the loan. We will introduce the various methods to you and help you choose the one that suits your circumstances and loan application the best.
Can I change the repayment method in my existing home loan?
If your situation in life changes, you may find that another repayment method would suit you better. For example, you may want to re-evaluate your repayment method with us if your costs jump, if you change jobs or if you change homes.
If you want to change your repayment method during the loan period, apply for a change to your loan in Nordea Netbank or Mobile. We will send you a message confirming the change, or if the change requires your signature, we will send you a new repayment schedule for digital signing.
You will need to pay a fee of 150,00 € for changing the repayment schedule as a self-service in Nordea Netbank or Mobile.