Home loan

Loan costs consist of the reference interest rate, bank's markup and service fees related to loan repayment. In addition, the loan is subject to a processing charge when it is drawn down.

You can fill in a loan application online even if you were not yet our customer. When you fill in the loan application, you do not yet need to know, for example, the exact price of the new home. The loan application is nothing more than an invitation to make an offer ‒ it does not bind you to raise the loan.

In the loan application, we will ask you, for example, about:

• your income or income of other loan applicants, if there is any, expenses, debts and their monthly charges.
• information on your wealth.

Sufficient repayment capacity is required for granting the loan. We will check your credit history from the credit information register of Suomen Asiakastieto Oy when you apply for the loan.

Collateral is needed for a loan that secures repayment to the bank. The home you buy covers the majority (usually 70%) of your loan. Side collateral may be needed for the residual amount.

You can apply for a government guarantee for your home loan. You can also contact your local OP cooperative bank for a loan guarantee or ask another person to guarantee your loan.

Interest rates are exceptionally low for the moment. You can prepare for a rise in interest rates in advance by setting, for example, an interest-rate cap for your loan.

Long-term fixed interest rate

A Long-term fixed interest rate provides unequalled protection for your home loan interest throughout the loan term, up to 25 years. It is only available to OP’s owner-customers. If you wish, you can repay your fixed-rate home loan early without additional charges.

Interest rate cap

Interest rate cap means that you set an upper limit for your loan’s reference interest rate that will not be exceeded during the validity of the interest rate cap. By protecting your loan with the interest rate cap, you set a ceiling for your loan’s reference interest rate but you will also benefit from falling interest rates: if the reference rate is below the ceiling you set, your loan’s reference rate will be lower, too.

You can include the interest rate cap in new and existing Euribor-based loans. You can pay it as part of your loan margin or as a lump-sum payment. Factors affecting the price of the interest rate cap include the general interest rate level, your loan amount, and the level and duration of the interest rate cap.

You can apply for a repayment holiday for your home loan on OP eServices, during which you will pay only interest. You can also apply for a change to the repayment instalment and date. Such changes are subject to a charge based on the bank's list of service charges and fees.

Extra repayment

You can amortise your loan in addition to your normal monthly instalment. This extra repayment does not defer the next instalment or payment date. The extra repayment is not subject to a charge.*

To make an extra repayment, you need the number of your loan  that you can find in the Loans section. After that, go to "New payment" under the Daily banking services section and enter your loan's number in the "Payee's account or IBAN" field. Then proceed as instructed. The amount of your extra repayment is debited to your account on the same day.

* If you have a fixed-rate loan, please contact the bank that has granted the loan because extra repayment may be subject to a charge under the general loan terms and conditions.

We agree with you on a suitable monthly instalment and repayment method for your loan. The maximum recommended home loan term is 25 years. The monthly loan repayment instalment should account for a maximum of 35% of your monthly net income and your repayment capacity should also tolerate a rise in interest rates. It is advisable to determine the size of your monthly instalment in such a way that you can also save some money for your future needs. If needed, you can also have a repayment holiday during which you will pay only interest on your loan.

The total home loan interest rate is made up of the reference interest rate and the bank's markup on the loan (margin). If you choose, say, a 12-month Euribor as the reference rate for your home loan, you will always know your total borrowing rate for the next 12 months.

The most common loan repayment methods are equal payments and variable annuities.

Securing loan repayment

Anything unexpected can happen during a long loan term. A loan payment protection insurance is the most important insurance for home loan borrowers.  You can take it out for both a new or existing loan – as an individual cover or, together with your co-borrower, a joint cover.

The insurance helps you cope with paying monthly loan repayment instalments if your become disabled or lose your job. The insurance pays off the loan if the insured person dies.

The ASP scheme (housing saving and support scheme) is a scheme established by the Finnish government aimed at encouraging first-time home buyers and make it easier for them to buy their first home. Through the ASP scheme, you get a good interest on your home saver's account and a loan on favourable terms.

You are entitled to a 10-year government interest subsidy on your ASP loan or part of it. If the borrowing rate exceeds 3.8% during the interest subsidy period, the government will pay 70% of the interest above that rate. The interest subsidy loan has its maximum amounts by locality.

In many cases, a home and government guarantee are eligible as ASP loan collateral.

We provide a flexible and customised home construction loan.

It is a normal home loan but, as distinct from the normal home loan, the plot of the house to be built is usually the primary collateral for the loan.  The house's collateral value increases as the construction work progresses, and the loan is drawn down in portions. During the construction project, you can pay only interest on your loan, for example, during one year, in which case costs do not increase too high.

Thinking about shopping for a new home loan or refinancing your existing one? Learn how to get the best deal on your home loan.

OP cooperative bank owner-customers earn OP bonuses from:

• Funds in savings accounts

• Home loans, student loans and secured bank loans

• Mutual funds and unit-linked insurance assets

• Insurance premiums paid, such as home and motor vehicle insurance and continuous travel insurance

 OP bonuses are used for the bank’s service charges and insurance premiums.

Take a look at the terms and conditions governing loans, pledges and guarantees, and forms. You will accept the terms and conditions of the loan and collateral agreement at the time of signature.