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OJSC Nordea Bank announced new special terms under its mortgage programs (to be effective till 01 November 2012). As a result the interest rate will depend not only on the period for which the interest rate is fixed but also on the amount of a down payment. Thus, the higher a down payment, the better the terms and conditions. An interest rate under the loan with a down payment higher than the minimum one will be by 0.5 percentage point lower than an interest rate under a loan with a minimum down payment.
A borrower will also have a wide choice while fixing the interest rate of a mortgage loan. At present she/he may fix it for any period up to 10 years (always multiple of one year) or for the whole life of the loan agreement. Under new terms and conditions it is possible to fix the interest rate for 15 or 20 years (the most popular terms among the Bank’s borrowers). In case of a 40% down payment and the term of 15-20 years the interest rate under a mortgage loan offered by OJSC Nordea Bank will be equal to 12.25-12.5% (for loans in Roubles) and 9.25-9.5% (for loans in any currency other than the Rouble).
‘We closely examine the current market situation, focus on the needs of our customers and do our best to be able to offer to them a wide range of flexible and attractive terms and conditions. In many cases down payments made by our customers are higher than the minimum threshold set by the Bank. Many loans are taken for a purchase of a new flat carried out simultaneously with a sale of an old one. In such cases a down payment may be equal to 50-70% of the purchase price. Now mortgage loans will be even more attractive for such customers,’ said Andrei Maltsev, Deputy Chairman of the Management Board of OJSC Nordea Bank.
Other attractive terms of mortgage programs offered by OJSC Nordea Bank to its customers are as follows: a preliminary estimation of the amount of a mortgage loan may be made by the Bank on the basis of just three documents submitted by the potential borrower ; the minimum level set for a down payment is just 10% of the purchase price; the maximum term of a mortgage loan is 30 years; no commission is charged for prepayment of the loan; the right of the borrower to choose the type of the loan repayment plan: either in differentiated payments (i.e. in stepped down installments) or annuity payments (i.e. in equal periodic installments); the right of the borrower to secure her/his obligations under the mortgage loan by a pledge of commercial real estate or a pledge of land plots; no drawdown fee is charged by the Bank under its mortgage loans; a borrower has the right to use covered irrevocable letters of credit for the repayment of a mortgage loan, etc.