Interest rate collar

• The hedging period is 3, 4, 5, 7 or 10 years.
• In loans with an interest rate collar, the reference rate is the 3-month, 6-month or 12-month Euribor. This means you can make changes to the repayment schedule and other details of your loan on the same basis as with other Euribor-linked loans.
• The interest rate collar is also available for secured consumer loans.

The minimum loan amount is 15,000 euros and the loan period is at least as long as the interest rate collar period. You can’t add an interest rate collar to an existing loan until the loan has been drawn down in full.

• You can agree on an interest rate collar for your new home loan at your loan meeting.
• If you want to add an interest rate collar to your existing loan, please contact us.
• You can protect the whole loan or half of it, for example.

• You don’t pay any separate fee for an interest rate collar.
• The actual levels of an interest rate collar are determined when you draw down the loan, which means that they can deviate from what you have previously discussed with us.
• Contact us to get an offer for an interest rate hedge.

Example: You take out a home loan of 161,000 euros and the loan period is set at 23 years. The agreed reference rate is the 12-month Euribor and the margin is 0.6% (April 2025). You choose to add an interest rate collar to your loan for 5 years, which will set the minimum level of the reference rate at 2.71% and the maximum level at 3.31% (levels in April 2025). The APR is 3.1%, including an opening fee of 644 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 224,074 euros. The monthly payment (annuity) is 840 euros at drawdown.

The loan amount and interest are a representative example for home loans offered by Nordea. The example, however, is only 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.