Interest rate cap

• An interest rate cap can be added to new and existing home loans alike.
• You can add an interest rate cap to a home loan with 12-month Euribor as the reference rate. 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.
• You can choose an interest rate cap that is valid for 3, 5, 7 or 10 years. 

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

• The actual level and price of an interest rate cap are determined when you draw down the loan, which means that they can deviate from what you have previously discussed with us.
• The interest rate cap is subject to a separate hedging fee.
• Contact us to get an offer for an interest rate hedge.

You can add an interest rate cap to your loan to set a maximum level for the reference rate during the validity of the interest rate cap.

Example: You take out a loan of 150,000 euros and the loan period is set at 24 years. The agreed reference rate is the 12-month Euribor and the margin is 0.53% (April 2024). You choose an interest rate cap of 3.75% for 10 years. This means that the total interest rate of your loan cannot rise above 4.28% during the validity of the interest rate cap. The APR is 4.4%, including an opening fee of 600 euros and a monthly fee of 2.50 euros for the automatic debiting of loan payments. Any fees for the interest rate cap have not been taken into account in the calculation of the APR.  The number of payments is 288. The total amount of the loan and loan costs is 240,585 euros. The monthly payment (annuity) is 830 euros and does not include the interest rate cap fee which is paid separately.

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.