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Financial security with an interest rate cap

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

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. 
  • A loan with an interest rate cap is as flexible as any other home loan, and you can increase or decrease your monthly payment without asking us first. 

For first-time home buyers, an interest rate cap may have different features than for other home buyers. This includes the validity period and cap level, for example. The exact level and validity period of the interest rate cap are determined when you draw down the loan. This interest rate cap is valid for about 4 years and the arrangement fee is 0.4% or a minimum of 300 euros.

See an example calculation of a free interest rate cap for first-time home buyers

Learn how the interest rate cap works 

You will get the free interest rate cap for a home loan for first-time home buyers when:

  • you draw down the loan between 8 Sep and 30 Nov
  • you draw down the full loan amount in one go 
  • your regular income, such as salary, is paid to your account with Nordea
  • you have never owned a share of 50% or more of a home. 

The reference rate of the loan will be the 6-month Euribor, and you won’t be able to change it during the validity period of the interest rate cap.

Frequently asked questions about the interest rate cap for first-time home buyers

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Example calculation

During our interest rate cap campaign, you will get a free interest rate cap for your home loan if you are a first-time home buyer. An interest rate cap means that the reference rate of your loan won’t exceed the agreed cap level.

Example: You take out a loan of 150,000 euros and the loan period is set at 23 years. The reference rate of your loan is the 6-month Euribor and the margin is 0.6% (5 September 2025). You get an interest rate cap of 3.5% for 4 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 2.77%, 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 202,800 euros. The monthly payment (annuity) is 732 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.

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