Nordea now offers 35-year housing loans

Nordea bank has started offering housing loans for a maximum period of 35 years to its customers, said the bank in a statement.

The extension of the loan period is aimed at encouraging Finns to accumulate more assets, besides owning a home.

“Owning a house is a good and supportive way of prospering. Even better is to accumulate other assets. We have seen that Finnish wealth is tied too much on housing,” said Nordea Mortgage Bank CEO Tom Miller.

Miller emphasized that the idea is not to offer larger loans to applicants, but the loan repayment will be calculated in a way that a customer will still basically be able to pay it back in 25 years.

However, at present, a part of the monthly loan repayment may be directed to other investments, while the same housing loan repayment may be extended for a maximum of 35 years.