Home loan

When you request a home loan offer, we will ask you about your income and current debts. We use this information to evaluate how large of a loan you would be able to repay while having enough money for living expenses. 

In addition to sufficient repayment ability, a home loan usually requires collateral or guarantors as well as some savings, as the entire price of the home typically cannot be financed with a loan.

In most cases, the purchased home can be used as collateral for the loan to up to 70% of the home’s value. If you need to borrow more than 70% of the home’s value, the bank will usually also need some additional form of collateral.

Possible forms of additional collateral include a home loan guarantee by Garantia or a loan guarantee by the OP cooperative bank. You can also apply for a state guarantee for your loan. If your loan has a guarantor, the guarantor’s property can also be pledged as collateral.

If you want to reduce your monthly repayment amount of take a repayment holiday, you can apply for a change in your repayment plan. Submit the application well in advance, at least 15 days and not earlier than 90 days before the date on which you wish the change to take effect. The change is subject to a service fee according to the price list. If you are our owner-customer, OP bonuses can be used to pay the fee. If you don’t have OP bonuses, the service fee is charged with the next instalment of the loan. 

As a rule, extra repayments and advance repayments of a home loan are free of charge. If your loan has a fixed interest rate, the bank may charge for the extra repayment.

You can shop around for home loans by asking for comparable offers from different banks and financing institutions.

If your home loan is currently at another bank, ask us for a loan offer. Once you have submitted the loan application, our expert will be in touch with you to go over the terms of the loan offer, OP owner-customer benefits on home loans and the collateral required for the loan.

Home loan is a one-off loan. Let's look at a home loan where the loan amount is 170,000 euros. The loan term is 20 years. The loan margin is 1.00%. Calculating with the 12-month Euribor of 2.679% (valid on 17 Oct 2022), the effective interest rate of this home loan will be 3.871%. In addition, a loan servicing fee of 2.50 euros will be charged each month. When the loan is drawn down, a one-off origination fee of 680 euros will be charged. The estimated total cost of the loan is 242,835,33 euros.

In this calculation, we assumed that the entire loan was drawn down at once, that the loan interest rate, fees and charges stay the same throughout the loan term and that the loan is repaid in equal payments of 1010.71 euros every month. The home loan is granted by an OP cooperative bank.