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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. And if interest rates fall, you will benefit from their decline down to the minimum level. An interest rate collar can be added to a new loan as well as to existing ones.

Why take an interest rate collar?

With an interest rate collar on your loan, you no longer have to worry about interest rates rising, as you will have secured your loan against large fluctuations in its reference rate. It is actually worth locking in an interest rate collar at the current favourable interest rate levels while they are still low. This will allow you to continue to enjoy the current low rates in the future, securing the monthly payment on your loan for years to come!

Your reference rate will stay within the agreed limits 

You can be sure that there will be no unexpected changes in the monthly payment on your housing loan, as it will remain within the agreed limits throughout the hedging period.

No separate fee  

If you opt for an interest rate collar, you won’t have to pay a separate hedging fee like with other hedging products.

Stability against a rise in reference rates

The monthly payment on a housing loan is typically the largest individual expense in a household. By hedging against the interest rate risk, you can keep your monthly payment under control.

Flexibility for your loan instalments

If your loan has an interest rate collar, you can flexibly change your loan’s repayment schedule. This means that you can add instalment-free months to your loan, for example.

Features of the interest rate collar

  • 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 at 0200 700 00 (service hours on banking days 8.00 - 18.00)  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 at 0200 700 00.

Interested in interest rate collar or want to hear about its alternatives?

Just fill in your contact information and we will call you. Your contact information will be forwarded to an expert in interest rate hedging. Let’s secure a low interest rate for your loan!

Contact Nordea Customer Service  

Mon-Fri 8.00 - 18.00

0200 70000 (lnc/mcc*)

* local network charge/mobile call charge