Homeowner loan

Live your dreams by freeing up your home’s value into cash. Your home remains yours to keep!

Make use of your home equity

If you have a debt-free or nearly debt-free home and need cash to supplement your pension, for example, you can get a reverse loan from OP for up to 50% of your home’s value. You will continue to own your home.

You get access to the funds in the manner that best suits you

You can draw down the loan monthly or all at once, for example. The maximum loan term is 10 years.

During the loan term, you only pay the interest

The loan is repaid all at once at the end of the loan term, typically with funds received from the sale of the home used as collateral for the loan. During the loan term, you only pay the interest.

For whom is a Homeowner loan suitable?

If you own an owner-occupied home that is debt-free or nearly debt-free and it is located in a growing city, you can apply for a Homeowner loan. The loan is repaid all at once at the end of the loan term. When taking out the loan, you must have a repayment plan and an idea of your own future plans. In most cases, the home is sold and the loan repaid with the proceeds of the sale.

What is the loan for?

A Homeowner loan allows you to free up your equity to pay for day-to-day expenses or finance your larger purchases and dreams. For example, you need steady extra income to supplement your pension or cash for home improvements.


Is Homeowner loan a reverse loan?

Yes. Homeowner loan is a so-called reverse loan. A reverse loan, or reverse mortgage, is a loan in which the home is used as collateral and the entire loan amount is repaid to the bank at once. In other words, you only pay the interest on the loan during the loan term.


Homeowner loan details

  • The entire loan amount is always drawn down at once.
  • If you want access to the loan in instalments, the loan is drawn down to a Homeowner account set up for you. The loan is then transferred to your account in agreed instalments.
  • The maximum loan amount is 50% of the value of the home set as collateral for the loan.
  • In order for the bank to approve the home as collateral, it must be owned by you and be debt-free or nearly debt-free.
  • We mainly accept homes located in growing cities as collateral.
  • The loan price includes the handling fee, monthly loan servicing costs and interest.
  • Interest is paid monthly for the entire loan amount.
  • The loan is repaid all at once at the end of the loan term, typically by selling the home used as collateral.
  • To prevent abuse, the account cannot be connected to a payment card. If necessary, we may also restrict online bank transfers between accounts.

If you do not have OP eServices user identifiers or are not yet our customer, book an appointment at your nearest bank branch or call our customer service. Customer service contact information

Leave a contact request with your bank
You can leave a contact request with your bank with an online form. When filling out the contact request, you do not yet need to know the exact loan amount you need. Leaving a contact request does not obligate you to take out the loan.

Why is collateral needed?
Banks require collateral to ensure that loans are repaid on time.
What can be used as collateral?
As collateral, you can use a home that you own and occupy or have let out.

How much collateral is needed?
The collateral value of your collateral is always calculated on a case-by-case basis. Different types of collateral often have different collateral values.
Ask more about collateral
You can discuss the collateral with our expert. We’ll help you determine the value of your collateral, if needed.

The loan must always be drawn down all at once, but you can make use of it in the manner that best suits you. If you want to receive the loan in instalments, we will set up a Homeowner account to store the loan and automatically transfer it to you in instalments. The amount of the instalments is adjusted to suit your needs. You can raise or lower the instalment at any time or draw down the entire remaining loan at once.

During the loan term, you pay only the interest on the loan. The loan is repaid at the end of the loan term, typically with funds received from the sale of the home used as collateral for the loan. However, you can repay the loan prematurely at any time or repay it before the agreed due date without additional fees. Contact your bank if you wish to make an additional repayment or agree on repayment of the loan.

The loan costs include a fixed interest and monthly loan servicing fees. In addition, the bank charges a fee for the loan drawdown in accordance with its list of service charges and fees.

Our loan offer shows you the effective interest rate of the loan which you use to compare any other possible loan offers. The loan drawdown and servicing costs are taken into account in the effective interest rate.

Example calculation
The loan term is 10 years and the amount of loan is up to 50% of the value of the home used as collateral. The entire loan is always drawn down at once. In the example calculation, the funds are transferred for use as monthly instalments.
  • Loan term 10 years
  • Total loan amount €50,000
  • Handling fee €120 (paid at once when the loan is drawn down)
  • Monthly sum transferred to you from the Homeowner account: €416.67
  • Interest on the loan: €252.16/month (Fixed rate 5.964% [as of 19 May 2023]. The fixed rate will be determined on the drawdown date)
  • Loan servicing fee: €2.50/month
  • Monthly sum remaining after interest and fees: €162.01
The amount of loan and its price are always customer-specific.
Effective annual interest and total amount repayable have been calculated with the following values: loan amount €50,000.00, loan term 10 years, fixed interest rate 5.964% (19 May 2023), service fee €2.50/month, handling fee €120.00. In the example calculation, the effective annual interest rate is 6.315% and the total amount repayable is €80,258.77.
Changes in the presumed values may result in a different total amount to be repaid and effective annual interest rate. The example calculation is not a loan offer and is not binding on the bank.
The loan is granted by OP cooperative bank.

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

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
The loan is granted by OP cooperative bank.