Interest rate protection for housing company

Do you want to make your housing company’s financial planning and budgeting easier? Interest rate protection for your housing company loan. Protecting against rising interest rates is an important part of a housing company’s long-term and responsible financial management. Through protection, you fix interest rate expenses in the coming years and ensure that a rise in interest rates will not affect charges for financial costs.

Protection for housing company loans against rising interest rates

Benefits for the housing company:

Protection against rising charges for financial costs due to higher interest rates
Easier financial planning and budgeting in the housing company
Flexible repayment scheme: possibility for shareholders to make extra repayments and repayment holidays are also possible if required.
Customised interest rate protection takes the special needs of a housing company into account
No separate charge for the protection

An interest rate protection is a supplementary feature to housing company loans granted by OP Financial Group, which enables converting floating-rate loans to fixed-rate ones for a chosen period. The total interest rate for a protected housing company loan is based on the fixed reference rate plus the agreed markup.

Interested?

Please make an appointment for a meeting at your nearest OP cooperative bank to discuss with us. Let's build together an optimum solution for you.

OP Financial Group member cooperative banks offer interest rate protection for housing companies.

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Read more about interest rate protected loans

An interest rate protection is a supplementary feature to housing company loans granted by OP, which enables changing floating interest rates to fixed rates for a chosen period.

The total interest rate for a protected housing company loan is based on the fixed reference rate plus the agreed markup.
Interest rate protection can be included in a new or existing housing company loan for new construction or renovation.
Ownership needs to have been transferred to the housing company’s shareholders before the loan can be protected.
Interest rate protection cannot be included in interest subsidy loans.
The loan must be linked to a Euribor rate and amortised in equal instalments.
The reference interest rate cannot be changed during the period of interest rate protection.
An interest rate protection can be cancelled only when repaying the loan.
There is no charge for cancelling interest rate protection in the case of early repayment through shareholder amortisations.

Read also about financing renovations and interest rate risks and their management