Home loan

Apply for a home loan online and sign the agreements electronically

Pakollinen otsikko (piilotettu)

  • You will earn OP bonuses

    Gain up to hundreds of euros a year from OP bonuses earned through the home loan.

  • Calculate the maximum loan amount and request a loan offer

    You can get a home loan offer from us conveniently online. OP’s customers can also calculate the maximum loan amount using a pre-filled loan application.

  • Interest rate cap

    Choose an interest rate cap to prepare for higher interest rates.

  • Smooth service for all banks' customers

    When you have decided to take out OP’s home loan, we can also take care of switching banks on your behalf if you wish. Requesting a loan offer does not cost anything or bind you to draw down the loan.

Request a home loan offer

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Calculate how much your loan would cost per month.

Calculate your home loan

Steps towards a home of your dreams

  1. Contact us to apply for home loan

  2. Home loan offer

  3. Loan negotiation over the phone, online or at a bank branch

  4. Purchase of a home

 

Use the loan application to test your loan amount and ask for a loan offer

You should check how large a home loan can be granted to you before visiting any flat showings. As OP’s customer you can find out the maximum loan amount by filling in a loan application, after which you can request the actual loan offer. You can also sign the loan agreements electronically using your user ID – you only need to visit a bank branch for signing the deed of sale. You can file the loan application online even if you are not OP’s customer. The loan offer is effective for three months and does not require drawing down a loan.

 

Choose a loan that adapts to your life situation

Buying a home is the biggest investment of many Finns. We can offer you a safe home loan that can be adapted to your life situations. If needed, you can have a loan repayment holiday and, for example, save money for future purchases alongside with repayment.

 

As an owner-customer, you earn OP bonuses through your home loan

Our home loan stands out from other banks' loans because it brings value-for-money OP bonuses to you as owner-customer. For example, a loan of 250,000 euros may generate bonuses worth over 600 euros a year. They will be used, for example, to pay a real estate agent commission or to set off, say, the insurance premium for your new home!

 

Contact us

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.

Loan-to-value ratio Loan-to-value ratio

The act governing the loan-to-value ratio came into force on 1 July 2016. The ratio applies to loans granted for the purchase or renovation of a home for which the home is lodged as collateral. The purpose of use of the home is of no significance, i.e. the law applies not only to loans taken out to buy one's own permanent home but also to those taken out to by a buy-to-let home and a holiday home.

The loan-to-value, or LTV, ratio means the ratio of the loan to the current value of the collateral lodged as security for the loan at the time of its granting. In calculating the LTV ratio, all real security placed by the debtor or another person, such as homes, deposits and securities, can be taken into account as collateral. A personal guarantee, for instance, cannot be taken into account.

The LTV ratio is a macroprudential instrument that helps the authorities to curb excessive household leverage and to prevent an increase in home prices and mortgage lending considered excessive, or other risks threatening the stability of the entire financial system.

In a normal situation, a loan may account for a maximum of 85% of the collateral's current value. For a home loan taken out by a first-time home buyer, the maximum is 95%. The Financial Supervisory Authority may reduce above maximums by no more than 10 percentage points to limit an exceptional increase in risks to financial stability. 

For example, if a home buyer secures his/her home loan only with the home to be bought, he/she must now have saved at least 15% (5% for first-time home buyers) of the purchase price. It is possible to reduce the need for personal savings by providing other real security in addition to the home.

Nevertheless, the LTV ratio is based on the law and thus binding on banks – it can be exceeded only in cases specifically permitted by the Financial Supervisory Authority, such as temporarily in situations where homes are exchanged. In addition to the LTV ratio, the bank’s own collateral requirements may affect the amount of collateral needed for the loan.
 
Example of calculating the LTV ratio: The home sales price is 100,000 euros. The home buyer's self-financed amount is 20,000 euros. He/she needs a home loan worth 80,000 euros. In this case, the LTV ratio is 80% (80,000/100,000 *100), which is compatible with the law.
 
As the bank normally accepts 70% of the home’s current value as collateral, the collateral shortfall after pledging the home is 10,000 euros (80,000-70/100* 100,000), which usually has to be covered with additional collateral. OP’s loan guarantee, for example, could be used as additional collateral in this case.

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.

Preparing for a rise in interest rates Fixed interest rate, interest-rate cap

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.

Loan costs Reference interest rate, markup, service fees, effective interest rate

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.

When you compare loan offers made by other banks, please note that our home loan may generate OP bonuses that are used, for example, for loan service charges and the payment of home insurance premiums.

A portion of your home loan interest is tax-deductible, which reduces your taxes.

When you think of the amount of loan you wish to raise, you should reckon with not only the purchase price but also any other costs that you may incur, such as moving costs and transfer tax related to home buying. For instance, home buying is usually subject to such a tax (2% of the purchase price on shares in a housing cooperative and 4% of real properties).

Loan repayment holiday and other changes Repayment instalment, payment date, extra repayment

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.

ASP loan Government interest subsidy, saving for a home under the ASP scheme

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.

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Home construction loan Construction, cost estimate, construction costs

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.

Repaying the loan and securing repayment Loan term, repayment method, payment protection insurance

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.

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

As an OP cooperative bank owner-customer, you get OP bonuses that decrease your banking and insurance service charges. In 2024, you will earn 40% more OP bonuses than normal.

OP bonuses come from

  • funds in savings accounts
  • home loans, student loans and secured bank loans
  • mutual fund units and unit-linked insurance
  • paid insurance premiums, such as home and motor vehicle insurance and continuous travel insurance.

OP bonuses are tax-free. Because of that they are automatically used for loan service and origination fees and insurance premiums, among other things.

Read more about OP bonuses

As an owner-customer, you also get significant benefits and discounts. For example, you will get daily banking services without monthly charges until the end of 2024 and interest on your Current Account. Furthermore, you'll enjoy lower saving and investing costs than usual.

See all owner-customer benefits

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.

Loan terms and conditions

The home loan is granted by the OP cooperative bank.