How is the loan's interest rate determined?
The interest rate on a housing loan comprises a reference rate and a margin. The reference rate is a publicly quoted interest rate. You and the bank will agree on the margin. You can choose the 12-month Euribor, Nordea Prime, or a fixed interest rate as the reference rate. During the loan negotiation, we can find out which interest alternative suits you best.
How to hedge against rising interest rates?
A low interest rate level is the housing loan borrower's friend. When the interest rates are low, you can amortise your loan quicker. Even if the rates were low when you obtain a loan offer, you must still prepare for a rise in the interest rate level. Therefore it is important that your housing loan is sized so that your repayment ability can tolerate a possible increase in interest rates. If you take out an ASP loan, the state’s interest subsidy will hedge you against rising interest rates for 10 years. If you do not have an ASP loan, you can also buy a hedge against rising interest rates.
Read more about the interest rate hedging offered by Nordea
Determining a suitable repayment plan
When you take out a housing loan, a repayment plan will be drawn up for the loan. You must consider how long you want the repayment period to be and the size of monthly payments you are prepared to commit to. Select a suitable repayment method for your loan: fixed equal payments, equal payments, or equal instalments.
Read more about the housing loan repayment methods
What if life surprises you?
You never know in advance what is going to happen, but luckily you can be prepared for unexpected things. If you become unemployed or fall seriously ill, how would your economy handle these surprising events? Nordea MyLife is a flexible personal insurance for your own and your family’s finances in the event of unemployment, serious illness, accident and death. You can take out one type of insurance cover or compile a cover package that suits your personal circumstances.
Read more about Nordea MyLife insurances.