Example of an interest rate collar and the annual percentage rate of charge (APR)

Example: You take out a housing loan of 155,000 euros and the loan period is set at 24 years. The agreed reference rate is the 12-month Euribor and the margin is 0.55 % (October 2023). 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 3.73 % and the maximum level at 5,47 % (levels in October 2023). The APR is 4.9 % and includes an opening fee of 620 euros and a monthly fee of 2.50 euros for automatic debiting of loan payments. The number of payments is 288. The total amount of the loan plus credit costs is 261,757 euros. During the validity of the interest collar, the monthly payment (annuity) will be 904 euros. 

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

When buying a home, you also need to pay costs related to 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 cases where the bank cannot make a security appraisal of the home, the bank will agree with customer on a separate appraisal and charge the costs it from the customer.