Interest rates

The variable interest rate on a loan consists of the reference rate you have chosen for the loan, i.e. the market rate, and the margin set by us. As the name suggests, the variable rate changes in line with market interest rates.

Read more about the home loan interest rate

Margin

The margin of a loan is agreed separately with each customer and for each loan. The margin covers our expenses and the risk we take by granting the loan.

Euribor and Nordea Prime are variable reference rates

A reference rate is a market interest rate that’s used to set a price on loans, such as home or student loans. The value of a reference rate is publicly available to everyone. The reference rate in the eurozone is the Euribor, and Nordea Prime is our own reference rate.

The fixed interest rate remains unchanged for a set period, and protects you against fluctuations in interest rates.

You can also protect yourself from rising interest rates with an interest rate collar or an interest rate cap if your loan has a Euribor rate.

The nominal interest is determined by the reference rate you choose and the margin we add to it. The nominal interest rate doesn’t include costs related to the loan, such as the arrangement fee or other possible costs.

The annual percentage rate of charge accounts for all of the loan’s costs, including the opening fee and account management fee. Therefore, when comparing the prices of loans, you should use the annual percentage rate of charge.

Read more about comparing loans