Euribor (Euro Interbank Offered Rate) is a euro-area money market reference interest rate that indicates the price at which large banks lend each other euro loans. Euribor rates are quoted for periods of varying length, such as 12, 6 and 3 months.
Learn more about Euribor rates
OP-prime is a reference rate used by OP cooperative banks. It is affected by general interest rate trends and financial outlook, among other factors. OP-Prime is more stable than Euribor rates and tracks market interest rates at a steady pace.
OP-Prime does not have a pre-announced adjustment date. OP Cooperative's Executive Management Team decides on any changes to the rate instead.
What is the home loan margin?
The interest on a home loan consists of the reference rate selected by the customer and a customer-specific margin. The margin depends on the collateral for the loan and the borrower’s repayment ability and customer relationship as a whole. The home loan interest rate, margin and effective annual interest rate are listed in the loan offer.
Instead of the reference rate and margin, you can also select a fixed interest rate for your home loan. Read more about fixed rates
We also offer long-term fixed interest rates for OP cooperative bank owner-customers. Read more about long-term fixed rates
Effective annual interest rate includes all costs of the loan
The interest on a home loan forms a part of the loan costs. In addition to the interest, the bank charges fees for drawdowns and management fees. The effective annual interest rate includes the full costs of the loan over one year. The effective annual interest rate allows you to compare the true costs of different loans.
The effective annual interest rate calculation is based on the interest rate at the time of calculation. For this reason, when comparing loan prices, it is important that the calculations compared be based on the same point of time.
OP cooperative bank owner-customers earn OP bonuses on OP loans. OP bonuses are not included in the effective annual interest rate calculation but may lower the total loan costs significantly as bonuses are used to pay loan management fees.