Take housing company’s loan in your own name

Renovation coming up in your housing company? Does the financial consideration you are paying to the housing company seem too high? If you take your share of the housing company loan in your own name, you get two advantages: you can tailor the monthly payment to suit your finances and you get a tax benefit.

Housing company loan in your own name

  • Charge for the financing costs or a loan of your own?
  • Usually when a housing company takes out a renovation loan, the shareholders will repay it gradually to the housing company as a part of the financial consideration.
  • The terms and conditions for a housing company loan, however, are the same for all shareholders, and therefore you cannot influence the amount of financial consideration that you will eventually have to pay. 
  • By taking out a personal loan from Nordea for paying off your share of the housing company loan, you can decide on a loan repayment schedule that best suits your situation.

Features

A personal loan has many advantages compared to the housing company loan.

  • We tailor the loan period and interest and other terms and conditions in accordance with your needs. Compare: The terms and conditions of housing company loans are the same for everyone, and the financial consideration may become too high to manage for some shareholders.
  • The interest on a personal loan taken out for home acquisition and renovation is tax deductible. Compare: You cannot deduct the interest of a housing company loan in your personal taxation.
  • If your financial situation changes, you can change the repayment schedule by, for example, using instalment-free months. Compare: With a housing company loan a single shareholder’s situation cannot be catered to.

There are several options for converting a housing company loan into a personal loan. The property management company will give you information on the terms of the housing company loan, the amount of your share and the payment dates.

Prices

Most common prices for housing loans

ItemisationPrice
Arrangement fee *0,4 %; 300 € minimum
Arrangement fee, Check-in Customer *200 €

Increased arrangement fee when a loan is secured by a third-party pledge or a guarantee
The increase does not apply to interest-subsidised ASP loans

100,00 €
Partial drawdown30,00 €
Automatic debiting of a loan payment / per withdraw2,30 €
FlexiPayment for a housing loan. Including in FlexiPayment to an existing housing loan always requires automatic debiting of loan payments, which is subject to a fee in accordance with the bank's tariff.0,00 €
Advance notice of loan debiting by letter or through Netbank0,00 €
Loan payment, paper invoice, from 1.9.2019 4,10€4,10 €
Payment reminder to borrower, guarantor or third-party pledger (per reminder)5,00 €

Change in repayment schedule

200,00 €  
Change of the due date or loan servicing account (Minor change of the repayment schedule)40,00 €
Change of debtor or one of the debtors assumes liability for the loan alone**200,00 €
Change of the applied interest or margin200,00 €
Obtaining a guarantor’s or pledge owner’s consent to amend the loan terms, such as the repayment schedule or reference rate35,00 €
Transfer of a loan to another bank upon customer’s request. Charged to the receiving bank**120,00 €
When a credit document is sent to another bank for getting a guarantee or a signature, the debtor is charged, per sending. Does not apply to loans intermediated from government funds. 30,00 €
Certificates requested by the customer stating the amount of debt and paid interest (incl. postage)10,00 €
Charges related to unsecured housing loans drawn down after 1 September 2019
Payment reminder to borrower, guarantor or third-party pledger (per reminder)5,00 €
Transfer of a loan to another bank upon customer’s request. Charged to the receiving bank**120,00 €
Certificates requested by the customer stating the amount of debt and paid interest (incl. postage)10,00 €
*) Arrangement fee is charged in connection with the first drawdown and with a raise or renewal of a loan. 
**) Does not apply to loans intermediated from government funds.
Foreign currency credit

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