Combination loan

The advantage of a fixed-rate loan is that your finances are not affected if the interest rate rises.

You can predict for the agreed period exactly what your home mortgage will cost you. The disadvantage is that your expenses will not go down if the interest rate goes down. It is important to be aware that you have committed to paying the fixed interest rate throughout the agreed lock-in period, even if the base interest rate is reduced.

Therefore, consider a fixed-rate loan if you’re think long-term and want predictability for your finances. Alternatively, you can combine fixed and variable interest rates. This gives you the predictability of a fixed rate loan, while also giving you exposure to movements in the variable rate, and full flexibility to make extra payments or fully pay off the variable rate portion of the loan.

If you come out of the agreement before the end of the lock-in, you risk having to pay a premium (or penalty), which in turn will lead to increased total costs.

Fixed-rate loans have special conditions that make them a little less flexible than ordinary home mortgages. If you terminate the loan during the lock-in period, charges may apply, and you cannot increase or pay off the loan as it suits you.

If you make changes or terminate the fixed-rate loan before the agreement period ends, the bank will make a calculation which may mean that you have to pay the bank a so-called premium (or penalty). This is done to ensure the bank does not lose any money as a result of the change. This would be the case when the interest rate level for new fixed rate agreements falls to below the fixed rate you have on the loan. On the other hand, you may get money back from the bank (discount).

The right to any interest rate gain (discount) only arises when the loan has had a fixed interest rate for an uninterrupted period of one year before the date of calculating the interest rate gain. This restriction does not apply to the sale of the customer’s mortgaged home, change of debtor due to a relationship break-up or the death of the borrower.

If you wish to make extra payments against the fixed-rate portion during the agreement period, you should contact us first to check whether there is a premium or discount on the loan.

You can make additional payments against the variable part of the loan at any time.

A premium or discount may arise if you make changes to the loan - redeem the loan, make an extra payment, get an interest-only period or extend/shorten the payment period - before the interest rate commitment period is over.

Premium (loss of interest): If the interest rate on new fixed-rate loans is lower than the interest rate on your fixed-rate loan, the difference constitutes a loss for the bank. In this comparison, we will look at new fixed-rate loans with interest rate lock-in periods that correspond to the remaining lock-in period you have on your loan. If you break the fixed-rate agreement before the interest rate lock-in period is over, you’ll have to pay the interest rate loss. The same applies if you make additional payments against the fixed-rate loan, or make changes to the repayment plan.

Discount (gain of interest): If the interest rate on new fixed-rate loans is higher than the interest rate on your fixed-rate loan, the difference will constitute an interest rate gain. In this comparison, we will look at new fixed-rate loans with interest rate lock-in periods that correspond to the remaining lock-in period you have on your loan. The main rule is that you will get an interest rate gain if it has been more than one year since you fixed the interest rate.

You can deduct any interest loss/premium from your tax return, while any interest gain/discount is taxable.

No later than six weeks before the expiry of the interest rate lock-in period, we will inform you that the lock-in period will soon expire. If the loan has not been paid off, you can choose to switch to a variable rate interest rate, or a new fixed rate agreement.

We reserve the right to change the interest rate until we have received a signed offer.

Full terms and conditions are shown in the loan documents you will receive when ordering. In most cases, you can sign.

In most cases, it’s fine to take the fixed-rate loan to a new home, if you move homes. The criterion is that the loan-to-value ratio for the fixed-rate loan in the new home must be the same or lower than when the loan was granted.