Äiti ja lapset

Interest rate cap

With an interest rate cap you can secure your finances when interest rates begin to rise.

Most affordable when the interest rates are low

The price of the interest rate cap is determined by the interest rate at the time of purchase. Purchasing the interest rate cap is most affordable when the reference interest rates are low – therefore, it is topical right now.

Low reference rate for many years to come

You can purchase an interest rate cap for a new or an old loan for a period of your choice: 5, 7, 10 or even 14 years.

Rein in your monthly loan repayments

By setting an interest rate cap for your home loan, you will know exactly how high your monthly payment amount can rise. The interest on your loan is kept in check even if interest rates were to rise.

It is sensible to take out an interest rate cap when interest rates are low

How an interest rate cap works

  1. We agree with you on a limit which the interest on your home loan will not exceed

  2. You can take out an interest rate cap for 5, 7, 10 or 14 years

  3. You can pay the interest rate cap either as part of your loan margin or on a one-off basis.

 

Interest rate cap protects your home loan against a rise in interest rates

As a home loan borrower, you can now repay your loan faster than ever before – thanks to low interest rates. It is pointless to start predicting future interest rates considering that you can enjoy low interest rates by choosing an interest rate cap for your loan.

The interest rate cap means a ceiling on your borrowing rate that will not rise above that ceiling during an agreed period. You can choose the interest rate cap for your loan for a period you prefer – for up to 14 years – and pay for it as part of your loan margin or in one go, depending on your choice. A special interest rate cap premium is determined by bond-market conditions and the level and the duration of the interest rate cap.

 

Interest rate cap is cheapest when interest rates are low

It is sensible to take out an interest rate cap before interest rates rise. The price of the interest rate cap is determined by the interest rate level at the time of signing the agreement. If interest rates are low when you sign the agreement, you will enjoy a cheap interest cap for many years to come. We offer an interest rate cap for a period up to 14 years.

With an interest rate cap you can plan your finances systematically. You will know the exact amount which your monthly home loan repayments will not exceed.

When it comes to your finances, it is wise to be prepared for external as well as personal risks. With an interest rate cap you can make sure that your monthly home loan repayments will not become too big even if interest rates rose steeply. Interest rates have been low for an exceptionally long time, so it is sensible to be prepared for a rise in interest rates.

 

Paying for the interest rate cap

You can choose to pay for the interest rate cap either as part of loan repayment or on a one-off basis:

  • When your interest rate cap payment is included in the margin, the interest rate cap premium is paid as part of the loan repayment, i.e. it is included in the loan’s margin. The interest rate cap can be cancelled early only when paying off the loan. If the loan with an interest rate cap is paid early during the interest rate cap period, the interest rate cap will also end.
  • If you pay for the interest rate cap on a one-off basis, it is subject to a one-off interest rate cap premium paid when the cap is established. If the loan with an interest rate cap is paid early during the interest rate cap period, the bank will return to the customer the going market price of the premium calculated for the interest rate cap on the present loan principal and for the remaining period of the interest rate cap, but no more than the original premium for the interest rate cap rate. The fee will not be returned if an agreed loan is left partially undrawn or that the party taking out the loan wishes to remove the interest rate cap during its validity.

Sleep tight without stressing out about higher interest rates

Thanks to the interest rate cap, you do not need to worry about the effect of higher interest rates on loan repayment. You can choose the interest rate cap for your existing home loan and a new one. When choosing the interest rate cap, you can also agree with the bank on other changes to your home loan, such as a repayment holiday.

Take out an interest rate cap

The interest rate cap is paid either as a lump-sum premium at the time of purchase (interest rate cap with lump-sum premium) or monthly as part of the loan margin during the validity of the interest rate cap (interest rate cap charged in the loan margin).

Paying the interest rate cap in the loan margin

Interest rate cap charged in the loan margin is paid as part of the loan payment amount, which means that it is included in the total interest of the period of validity of the interest rate cap. The interest rate cap cannot be cancelled early. If a loan protected with an interest rate cap is paid off early, the interest rate cap will end and no separate expense will be charged for that.

Paying the interest rate cap as a lump-sum premium

The interest rate cap with lump-sum payment is paid on a one-off basis at the moment of taking out the interest rate cap. The interest rate cap with lump-sum payment can be cancelled early, in which case the bank will return the interest rate cap premium calculated for the present loan principal and for the unused period of the interest rate cap. The bank will return the premium on the basis of the going market price at the time of the repayment and up to the maximum amount of the original interest rate cap premium. This also applies if a loan with an interest rate cap is repaid early.

In case you become unemployed, incapable of work or are on sick leave for a longer time, you should also protect your home loan in connection with protection against higher interest rates. Adjust your monthly loan repayment so that you can also save some money alongside repayments.against higher interest rates. Adjust your monthly loan repayment so that you can also save some money alongside repayments.
Take out home insurance for your new home conveniently under the same roof!

Owner-customer benefits

  • As an owner-customer, you get 45% off on a current account, OP eServices and OP-Visa card. For owner-customers, the cost is €3.95/month. Normal charge €5.45/month. If you are under 26 years of age, you receive our daily banking services free of charge.
  • As our owner-customer, you can choose a long-term fixed interest rate for your new home loan throughout the loan's term, up to 25 years. This is how you can ensure that your interest charges for your home loan will remain unchanged throughout the loan term.

OP bonuses

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

The interest rate cap is offered by the Group member bank.