A guarantee is always needed for a housing loan. OwnGuarantee is an additional security that you can take for your housing loan when the amount of loan you need exceeds the security value of the home. By taking out an OwnGuarantee, you will not necessarily need guarantors or any other security for your housing loan.

You can take out an OwnGuarantee for you housing loan if you intend to

  • buy a home in Finland for permanent residence by you or your family
  • renovate a home currently used as a permanent residence by you or your family
  • renegotiate your existing housing loans; for example, to release guarantors or other security from an old loan.


For the borrower, an OwnGuarantee is an additional security. For the bank, it is a form of insurance. 

In practice this means that if the borrower is no longer able to repay the housing loan and the selling price of the home pledged as security does not suffice to cover the remaining debt, an insurance company will pay the bank compensation amounting, at most, to the size of the OwnGuarantee purchased. 

The insurance company, however, has the right to collect the compensation it has paid to the bank from the borrower.


The cost of an OwnGuarantee depends on the amount of the housing loan and the additional security required. 

For example, if you have saved 15,000 euros, you will need to borrow 85,000 euros. The security value of the new home will be 75,000 euros, so you will need an OwnGuarantee for 10,000 euros. The cost of such a guarantee is 246.50 euros. 

You can obtain the precise price for the OwnGuarantee you need from our nearest branch or by calling Nordea Customer Service. 

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