OwnGuarantee

For the borrower, an OwnGuarantee, i.e. Nordea’s guarantee for a housing loan, is an additional security. For the bank, it is a form of insurance.

OwnGuarantee is subject to an additional fee which raises the total price of your housing loan, but it may be of great help if you face payment difficulties at some point.

In practice this means that if the borrower is no longer able to repay the housing loan and the selling price of the home pledged as security does not suffice to cover the remaining debt, an insurance company will pay the bank compensation amounting, at most, to the size of the OwnGuarantee purchased. 

The insurance company, however, has the right to collect the compensation it has paid to the bank from the borrower.