The interest on your home loan is composed of a reference rate and a margin

The total interest rate on a home loan consists of the customer-specific margin and the reference rate. The reference rate can be 

  • the 3, 6 or 12-month Euribor rate, 
  • a fixed interest rate or 
  • the Nordea Prime rate. 

Your margin will remain the same throughout the loan period, whereas the reference rate will fluctuate according to the market interest rates. However, if you have a fixed rate, it will remain unchanged. The most commonly used reference rate in home loans is the 12-month Euribor. 

You can check the reference rate on your home loan easily in Nordea Mobile or Netbank under your loan details. 

What factors affect the home loan margin?

The margin we charge for your home loan depends on your circumstances, including the collateral you can provide and your repayment ability. From our point of view, the margin covers the risk we take by granting the loan and our expenses.

We agree on the margin separately with each customer and for each loan, and record it in the loan agreement. You can check the reference rate and margin applied to your home loan easily in Nordea Mobile or Netbank under your loan details.

Annual percentage rate of charge also accounts for other loan servicing costs

Besides interest, your home loan includes other loan servicing costs, which are taken into account in calculating the home loan’s annual percentage rate of charge.

That’s why we recommend that you check the annual percentage rate of charge when you compare home loan offers.

Home loan interest is always stress tested

When you negotiate with us on a home loan, we will perform a stress test on your loan costs. We calculate how your total loan costs would change if the loan interest rose to 6%. This is one way for us and for you to ensure that you will have enough money left to service your loan after your other expenses.

We also recommend that you save while you repay your loan to ensure that you can cover rising interest rates or other unexpected expenses without losing control over your finances.

Flexibility for your home loan

You can apply for a payment holiday for your loan or for a change of interest rate or repayment method, for instance. FlexiPayment is a feature that allows you to easily adjust your monthly loan payment in Nordea Mobile or Netbank.

Explore your options

Relevant questions about home loan interest rates