Euribor (Euro Interbank Offered Rate) is a euro-area money market reference interest rate. It indicates the price at which large banks lend each other euro loans. Euribor rates are quoted for periods of varying length, such as 12, 6 and 3 months.
Learn more about Euribor rates
OP-Prime is OP's own reference rate. It is affected by general interest rate trends and economic outlook, among other factors. OP-Prime is more stable than the Euribor rates and tracks market interest rates at a steady pace.
OP-Prime doesn't have a pre-announced adjustment date. Instead, changes to it are decided by OP Cooperative's Executive Management Team.
What is the margin of a home loan?
A home loan's interest rate has two components: a reference interest rate, which is selected by the customer, and the bank's margin, which is customer specific. The margin of a home loan depends on the collateral for the loan and the borrower’s repayment ability and customer relationship as a whole. You can see the home loan's interest rate, margin and annual percentage rate of charge in our loan offer.
Alternatively, you can select a fixed interest rate for your home loan, instead of a reference rate and margin. Read more about a fixed interest rate
For OP cooperative bank owner-customers, we also offer a long-term fixed interest rate. Read more about a long-term fixed interest rate
APR shows all loan costs
The interest on a home loan forms part of the loan costs. In addition, the bank charges fees for loan drawdowns and loan management. The full costs of the loan, over one year, are included in the loan's annual percentage rate of charge (APR). By looking at the APR, you can compare the true costs of different loans.
Note, however, that the calculation of the APR is based on the interest rate level at the time of calculation. For this reason, when comparing loan prices, it is important that the calculations compared be based on the same point of time.
OP cooperative banks' owner-customers earn OP bonuses on their loans from OP. OP bonuses aren't included in the APR calculation, but they may lower the total loan costs, because OP bonuses can be used to cover loan servicing costs.