Free interest rate cap for your new home loan

Financial security with an interest rate cap

The interest rate cap protects your monthly payment from rising interest rates and helps keep your finances stable right from the start. If your loan has an interest rate cap, you can focus on your new home without needless stress.

Benefits of an interest rate cap

Protects your loan from a sharp rise in the reference rate. The interest rate will not exceed the agreed cap level even if the reference rate rises above it.
On the other hand, you will benefit whenever the Euribor rate goes down – all the way to zero per cent.
A loan with an interest rate cap is as flexible as any other home loan, and by using FlexiPayment, for example, you can increase or decrease your monthly payment without asking us first.

The free interest rate cap for a new home loan may have different features than other interest rate caps. This includes the validity period and cap level, for example. The loan period and repayment schedule can be agreed freely, but the loan period must be at least as long as the validity of the interest rate cap.

We will agree with you on a free interest rate cap during the loan negotiation, but the precise level and validity of the cap will be set when you draw down the loan. This interest rate cap is available for up to 3 years.

See an example calculation of a free interest rate cap

You qualify for the free interest rate cap for a new home loan when:

you draw down the loan on or before 31 May 2026
you draw down the full loan amount in one go
your regular income, such as your salary, is paid to your account with Nordea.

The reference rate of the loan will be the 12-month Euribor, and you won’t be able to change it during the validity period of the interest rate cap.

Submit a home loan application easily online, after which we will invite you to a loan negotiation. Submitting an application doesn’t commit you to taking out a loan.

Here’s how the interest rate cap works

If you include an interest rate cap in your loan, you will ensure that the reference rate of your loan won’t rise above the agreed level while the cap is in force. The interest rate cap makes sure that your monthly loan payment won’t exceed the defined maximum level even if the reference rate rises above the interest rate cap. The monthly payment comprises the loan instalment, the reference rate and the loan margin.

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Example calculation

During our interest rate cap campaign, you will get a free interest rate cap for a new home loan. This means that the reference rate of your loan won’t exceed the agreed cap level during the validity of the cap.

For example: You take out a loan of 150,000 euros and the loan period is set at 23 years. The loan margin is 0.6% and the reference rate is the 12-month Euribor (27 January 2026). You get an interest rate cap of 3.5% for 3 years. This means that the total interest rate of your loan can’t rise above 4.1% while the interest rate cap is valid. The annual percentage rate (APR) is 2.92%, including an arrangement fee of 600 euros and a monthly fee of 2.50 euros for the automatic debiting of loan payments. The number of payments is 276. The total amount of the loan and loan costs is 205,936 euros. The monthly payment (annuity) is 744 euros.

The loan amount, the loan period and the interest are a representative example for the home loans offered by Nordea.
The example is indicative and has been calculated using certain assumptions.
The example does not necessarily correspond to the actual APR charged on the granted loan.

When buying a home, you also need to pay the costs related to the registration of ownership and pledging of your home. You also need to see to it that your home insurance is up to date. In case of a property, you will need fire insurance at the least. In some cases, we need the help of a real estate agent to determine the value of your home. We will charge a fee for this service.

Find out when you should buy your first home, how much you could borrow, and more

Changing homes?

Read our tips and instructions for changing homes

Thinking about switching your banking to Nordea?

Here’s how you switch banks and transfer a home loan

Frequently asked questions about the free interest rate cap

Why do interest rates fluctuate?

Fluctuations in interest rates are a normal part of economic cycles. Inflation, economic growth and global events influence rate movements, and the European Central Bank (ECB) adjusts its policy rates to the current economic environment. The policy rates, in turn, influence market rates, such as the Euribor rates, which are familiar to people who have a home loan.

How can I get the free interest rate cap if I already have a preliminary loan offer or a loan promise?

We can agree with you on the free interest rate cap in the meeting we will hold after you have found a suitable home. Use the “I have found my new home” form to let us know that you have found one. We will call you and book a meeting with you.

If you already have a loan promise from us, you can send us a message through Nordea Mobile or Netbank or through Nordea Omaposti so that we can update your loan promise with the free interest rate cap.

Let us know that you have found a home