Start saving while repaying your mortgage

Do you have a loan but no savings? Savings may come in handy, for example, when you need to cover unexpected expenses or you want to make your dream a reality. Are you thinking about starting saving but have doubts because of a housing loan? Fret no more, as saving alongside your loan repayments is possible.

Start saving while repaying your mortgage

When taking out a loan, the loan amount and monthly repayments should be calculated in a way that gives you leeway to build up your savings at the same time.

Many people think that you should first pay off your loan as quickly as possible before you can start saving. But when it comes to regular saving, the earlier you start, the better the results. 

  • The effect of compounding means that the total return from your monthly savings will grow year by year. The interest you earn on your savings is added to the principal. As well as earning interest on the savings, you also earn interest on the interest itself.
  • If you have earmarked a specific amount for repaying your loan each month, one option is to extend your loan period. This will allow you to set some of this money aside for your monthly savings. 
  • When you save money while repaying a loan, you are building a buffer against any unexpected expenses, which will grow over time. So you are getting more for the same monthly amount.

You can extend your loan period even if you are already repaying the loan. Simply apply for an extension in mobile bank or contact Nordea Customer Service.

You only need 7 minutes and 10 euros to get started

Try our digital savings adviser Nora if you want to start saving quickly and conveniently.

Start saving with Nora

Our calculations show why it’s smart to save during the loan period

The examples below illustrate the difference in the total value of your savings in the following scenarios:

  1. You extend your loan period from 20 to 25 years, which allows you to spend less money on your monthly loan payment and put it in your savings instead.
  2. You only start monthly saving after first having paid off your loan in 20 years and save for 5 years (25 years in total).

In both scenarios, you are saving 200 euros a month:

  • In example 1, the total value of your savings will be 117,625 euros in 25 years.
  • To reach the same outcome in example 2, you would have to save more than 1,700 euros a month for 5 years.

Example 1: Monthly saving during the loan period

Säästäminen laina-aikana - Kk-säästäminen laina-aikana

Example 1*
Loan principal200 000 €
Monthly loan payment754 €
Monthly savings200 €
Monthly total954 €
Loan period25 vuotta
Total interest of the loan26 123 €
Total investment60 000 €
Return on savings57 625 €
Value of savings at the end117 625 


*In this example, the customer saves money in a fund that is expected to yield a 5.00% return and the interest rate on the loan is 1.00%.

Example 2: Monthly saving after the loan has been repaid

Säästäminen laina-aikana - Kk-säästäminen lainanmaksun jälkeen

Example 2*
Loan principal200 000 €
Monthly loan payment920 €
Monthly total920 €
Loan period20 vuotta
Total interest on the loan20 749 €
Monthly savings once loan is repaid200 €
Total investment12 000 €
Return on savings1 619 €
Value of savings at the end13 619 

*In this example, the customer saves money in a fund that is expected to yield a 5.00% return and the interest rate on the loan is 1.00%.

Saving made easy – here’s how to get started

Digital savings adviser Nora

Saving should be easy. Try our digital savings advisor Nora if you want to start saving quickly and conveniently.

Start saving with Nora

Nordea's flexible housing loan

With a housing loan from Nordea you can realise your dreams – buy a home, build a house or purchase an investment property.

Read more about housing loans

Important information about fund saving

The information on this page is meant only to provide general product information and is not to be considered as advice. Please note that historical returns are not a guarantee of future returns. The value of your fund shares can both increase and decrease as a result of the market’s development, and you may not get back all the invested capital.

Information about savings and investment services

Read more about savings and investments related terms and documents hereOpens new window.