Home construction loan

You can fill in the loan application online even if you are not yet our customer. When you fill in the loan application, you do not yet need to know the exact price of the new home or other such details. The loan application is nothing more than an invitation to make an offer ‒ it does not bind you to draw down the loan.

In the loan application, we will ask you the following information:

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

After you have sent your application, we will contact you the following day.

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

The collateral for a loan for building a detached house is usually the property being built, or the lease on the plot and the detached house located on the plot.

Although the collateral value of the property being built increases as the construction work progresses, you will initially usually need other collateral too, such as your current owner-occupied home, investment assets or other assets. You can apply for the bank's loan guarantee or a government guarantee as side collateral.

You can apply for OP’s credit guarantee to be used as side collateral for your home loan. The maximum amount of a loan guarantee is 50,000 euros per borrower(s) and home. It is valid for a maximum of 15 years.

Loan costs consist of the reference interest rate, the 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 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.

We agree with you on a suitable monthly instalment and repayment method for your loan. The recommended maximum loan term is 20 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, the 12-month Euribor as the reference rate for your home loan, you will always know your total loan interest rate for the next 12 months.

OP-prime is another option for your loan's reference rate, the changes of which we announce to our borrowers at least 14 days before the change takes effect.

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

Securing loan repayment

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

The insurance helps you meet loan repayment instalments if your fall ill or lose your job. The insurance pays the remaining loan in full if you die prematurely.

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.