This spring, short-term Euribor rates (such as the 3 or 6-month Euribor) have been more popular choices for home loans than in recent years. The 12-month Euribor is now being chosen for about four out of ten new home loans at OP Pohjola, compared to seven out of ten at the start of the year.
"During the spring, markets were predicting higher inflation. Accordingly, they priced in several ECB rate hikes for 2026. This soon led to a rise in the 12-month Euribor, in particular. The differences between Euribor rates widened, affecting rate choices by home loan customers," says Laura Hakamies, Head of Corporate Lending and Capital Markets Financing at OP Pohjola.
However, interest-rate preferences may soon change, since the 12-month Euribor's slide in popularity has already slowed slightly.
"The difference between the 3 and 12-month Euribor tends to be fairly small in the long term. As the difference narrows, the 12-month Euribor is likely to become more popular. In any case, Finns value predictability in home loans," Hakamies continues.
OP Pohjola's economists believe that the markets expect one more rate hike from the ECB this year. Euribor rates are expected to remain at around 2.5%–3% in the latter half of 2026.
One factor is often overlooked in price comparisons
Customers compare the costs of homes loans carefully. However, their comparisons may miss some factors that affect prices.
As well as the interest rate reference base, total borrowing costs can be affected by items such as customer benefits of various kinds. An OP cooperative bank's owner-customer can accumulate OP bonuses of up to €12,100 over 30 years on a home loan of around €250,000 from OP Pohjola.
"The margin does not tell the whole truth about the cost of a home loan. For longer loans in particular, OP bonuses can be very significant for the customer," says Hakamies.
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OP Pohjola Communications, tel. +358 10 252 8719, viestinta@op.fi