Interest rate cap

Features

• A loan with an interest rate cap is flexible because its reference rate is the Euribor. This means you can make changes to the repayment schedule and other details of your loan under the same principles as with other Euribor-linked loans.
• You can take an interest rate cap with a validity of 3, 5, 7 or 10 years. There are also multiple alternatives available for the interest rate cap level, i.e. for the upper limit of the interest rate.
• You can get an interest rate cap for a loan if the reference rate is the 12-month Euribor.
• You can add the interest rate cap fee to your loan principal to be amortised.

Prices and interest rates

When you take out the loan, you pay a fee for the interest rate cap depending on the amount of loan, the validity and level of the cap and the market interest rates. The fee charged for the interest rate cap can also be included in the loan principal.

The fee charged on the interest rate cap changes daily according to the market fluctuation of the interest rates. You can find out the daily rate for the fee by calling Nordea Customer Service or visiting one of our branches.