Security is a form of guarantee for the repayment of a housing loan to the bank. In general, the standard security value is enough to secure 75% of the value of the home.
You may need further security for the rest of your loan:
- For the remaining part (maximum 20%) of a housing loan you can buy Nordea Own Gurantee. For the remaining 5% you need your own savings or other security.
- You can take out a partial state guarantee for a maximum of 10% of the housing loan, so besides that you need other security or own funds.
- The price of an OwnGuarantee and partial state guarantee depends on the amount of the guarantee. When you use your own funds to finance a home, the required additional security is smaller and the expense is lower.
- Real estate, flats, securities and other liquid assets can serve as additional security. In some cases a personal guarantee is possible.
- A free state guarantee is included in an ASP interest-subsidised loan up to 90%, i.e. once you have saved 10% of the price of the home, you will need no other security.
In cases where the bank cannot make a security appraisal of the home, the bank will agree with the customer on a separate appraisal and charge the cost for it from customer.