Loan Refinancing

When is loan refinancing advantageous?

Loan refinancing is transferring of the existing financial obligations to another bank. This option is used is cases where the terms of the existing financial obligations are less favourable than those offered by Nordea.  Also if you want to change the contract terms: the loan amount, interest rate, or duration, but the bank does not show an understanding attitude, refinancing can be the solution. Upon refinancing, often also the consumer loans and credit lines are added to the total amount of the financial obligations.

It is to be noted that refinancing is possible only if the customer receives regular income, executes his or her loan repayments in good faith and without delays, and conforms to the bank's lending policy.

What are the most typical cases of refinancing?

• The bank towards which the customer has his or her financial obligations does not agree to amend the contract or applies an excessive commission for the contract amendments and increases the interest rate substantially.
• The customer wants to change the credit terms by choosing the floating interest rate instead of the fixed rate, since the former is lower at the moment, but the terms offered by the bank are unfavourable.
• The bank changes the added loan interest rate unilaterally, using the terms of the contract concluded with the customer previously.
• The bank does not allow increasing the loan amount or agrees to increase it only on the condition that also the added interest rate is increased substantially.
• The bank does not agree to combine the customer’s financial obligations (such as, the consumer loan, student loan, credit card limit, leasing and mortgage loan), although the customer could thereby reduce his or her total monthly payments.

In cases of refinancing the examination of the application for a loan and granting of the loan is free – find out if the terms offered by Nordea Bank are more advantageous than those of your current bank! 

Nordea Bank invites to borrow responsibly and evaluate the abilities to repay the loan. By granting the loan, the customer’s income, credit history and other liabilities are taken into account. The bank from which you want to transfer the loan may apply different commissions for contract changes or termination.  More detailed information is available from the bank which has issued the loan.