Interest rate collar

When your loan has an interest rate collar, you can be certain that the reference rate on your loan will not exceed the agreed maximum level during the validity of the collar. If the interest rates fall, the reference rate on your loan may fall to the minimum level of the interest rate collar. An interest rate collar can be added to a new loan as well as to existing ones.

Your benefits

  • The interest rate collar stabilises changes in the reference rates and you can be certain that the reference rate will not increase above the agreed level. 
  •  The interest rate hedge can be taken for a shorter period than a housing loan, as the amount of interest makes the most difference at the beginning of the loan period when the loan principal is high. 
  • During the validity of the interest rate hedge the reference rate will not exceed the agreed maximum level. If the interest rates fall, the reference rate of your loan may fall to the minimum level of the interest rate collar. 
  • The bank charges no separate hedging fee for the interest rate collar.
Korkoputki

Features

  • An interest rate collar can be added to both a new loan and existing loans.
  • You can take out an interest rate collar for a housing loan which has a reference rate of the 12 month EURIBOR.
  • The minimum loan amount is 15,000 euros and the minimum loan period 10 years.
  • The minimum and maximum levels are determined the day when you take out of your loan and they can deviate from the levels you have previously discussed with the bank.
  • When you wish to link an interest rate collar to an existing loan, you may do so when you have taken out the loan in full.

Interest rate collar: levels and fee

  • You do not pay any separate fee for an interest rate collar.
  • Call Nordea Customer Service to find out what the current day’s interest rate collar levels are.

Interest rate collar for your loan

You can agree on an interest rate collar for your new loan at your loan meeting.

If you want to add an interest rate collar to your existing loan, please call Nordea Customer Service.

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