How to prepare for a loan negotiation

To prepare for a loan negotiation, all you need to do is fill in your loan application carefully. You should enter the information on your household, including your monthly budget, which consists of your earned and other income and your regular bills and expenses. 

When filling in the application, you can also make sure that you’re aware of the overall situation with your finances. Our application and calculators allow you to assess in advance how much you can borrow, but you should remember that often the numbers will be finalised in the loan negotiation.

Once you have submitted your home loan application, we will call you as soon as possible to book a meeting. 

If you haven’t filled in a home loan application, read more about it and then fill one in. 

Book an online or in-branch loan negotiation

An online meeting is a convenient way of having a loan negotiation. All you need for this is a phone or computer and Nordea access codes. During the meeting, our home loan adviser will show you calculations and other relevant content on your device’s screen.

Read about online meetings

After the loan negotiation, you will receive a preliminary loan offer as a summary of the meeting, which will make it easier for you to explore the market and search for your future home. 

If you wish, you can also apply for a loan by having a loan negotiation with one of our home loan advisers in branch.

Finding the most suitable interest rate in the loan negotiation

The purpose of a loan negotiation is to find a flexible loan that suits your household’s finances. That’s why we will discuss your financial details which you have entered on the application. 

“In a loan negotiation, we discuss all matters relating to taking out and repaying the loan,” says Teemu Hiltunen, a home loan adviser at Nordea. 

“For instance, the interest rate is a key element in a loan, as is the interest rate margin. We also perform a stress test to see how your finances would hold up if the interest rate increases to 6% with a repayment period of 25 years.”

The majority of Finnish borrowers have tied their loans to the 12-month Euribor, but in today's changing interest rate environment, borrowers are increasingly interested in the Nordea Prime rate and the 3-month Euribor. 

Read more about Euribor rates and other reference rates.

“In a loan negotiation, we also ensure, together with the homebuyer, that they are sufficiently protected against changing circumstances. This includes discussing interest rate hedges as well as health and unemployment insurance.”

Some of the things we discuss in a loan negotiation:

  • the loan amount 
  • your savings 
  • collateral for the loan
  • reference rate and margin
  • hedging against rising interest rates
  • loan period and repayment method.

Saving while paying off your loan is worth it

When you negotiate with us on a loan, you will receive tips on how to plan your finances. One important thing to keep in mind is preparing for the future. This includes saving up a buffer for future expenses and planning your wealth over the long term.

“Often our conversation with prospective homebuyers begins with their income and lifestyle. And how much they can save,” says Teemu Hiltunen.

There is no deadline for saving, as you can start with something like 10 euros a month and increase the amount over time.

Read more about saving while repaying a loan

Säästäminen asuntolainan ohessa

Three out of four are savers

A total of 75% of Finnish mortgage-holders save while repaying their loans, a survey conducted by Nordea (9/2023) indicates. The most typical forms of saving are a savings account, investment funds and stocks, and the amount saved is 150 euros a month on average.

Before negotiating a loan, it’s good to have a plan

Jussi Pajala, the CEO of Nordea Mortgage Bank, says that you can never emphasise the importance of good planning too much in a successful home purchase. When home hunting is based on a well-executed plan and saving in advance, you will have time to figure out your personal preferences.

“Every homebuyer should spend a little time on thinking about what their dream home would be like. They should also consider whether their personal finances make this dream possible and, if not, what path they should follow in order to make it possible,” says Jussi Pajala.

“Young people often get the idea of buying a home from their parents who think it’s important to have your own home. And often the recommendation to start saving in an ASP account also comes from home,” says Teemu Hiltunen.

Finns negotiate their home loans every seven years on average. People often switch homes because of their family situation or a new job, and usually this takes place when people have small children. “Nowadays, the proliferation of remote working is placing new requirements on the size of a home, as people are increasingly looking for a home with an extra room that can be used as an office,” says Jussi Pajala.

50% off life insurance, the offer is valid until 17 June

Protect your family's financial future with life insurance. If you have a home loan from us, you get a continuous discount of 15% on new insurance policies and now an extra 50% off for six months.

Read more and calculate price

Wondering about the effect of rising interest rates?

Protect your loan and finances against rising interest rates and costs by saving or with interest rate hedging.

Read about how you can protect your finances against higher rates

Loan promise

A loan promise negotiated with the bank will help you buy your new home. A loan promise in your pocket makes home hunting easier.

Read more about loan promise