{"id":8417,"date":"2022-06-30T14:06:33","date_gmt":"2022-06-30T11:06:33","guid":{"rendered":"https:\/\/nordichypo.ee\/frequently-asked-questions\/"},"modified":"2026-02-26T15:02:07","modified_gmt":"2026-02-26T13:02:07","slug":"frequently-asked-questions","status":"publish","type":"page","link":"https:\/\/nordichypo.ee\/en\/frequently-asked-questions\/","title":{"rendered":"FAQ"},"content":{"rendered":"\t\t
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Frequently<\/i> asked questions<\/strong><\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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How long has Nordic Hypo been operating?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The company has been operating since 2010, but our team has over 20 years of experience in the financial sector.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Are loans from Nordic Hypo secure?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Security and confidentiality are essential factors in financial matters, and there can be no compromise on these issues. The Nordic Hypo team has many years of experience working in the financial sector, so our clients can rest assured that their personal data and loan information are protected. The Nordic Hypo team uses a modern and thoroughly tested IT system, with special attention paid to data protection.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Who are Nordic Hypo\u2019s main clients?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Nordic Hypo finances both natural and legal persons in need of flexible financing solutions. Many of our clients are small businesses in need of additional financing to branch out into a new line of business or to finance their existing business.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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How high is Nordic Hypo\u2019s loan interest rate?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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We offer loan products to our clients where interest is calculated on the actual loan amount (similar to banks). Our interest rates start from 9% per annum. Individual loan offers depend on the desired loan period, payment schedule, collateral offered, and the client\u2019s creditworthiness. For a specific offer, please contact our client service representatives.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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How risky is a loan against real estate collateral?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Each loan is a financial obligation. Nordic Hypo\u2019s goal is to make sure that clients make informed loan decisions and that the financing solutions offered fully meet clients\u2019 needs and possibilities. We value long-term and trust-based client relations and do everything we can to help clients choose a suitable and affordable financing solution.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Does Nordic Hypo refinance existing loans from other financial institutions?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Many clients have used our mortgage loans to refinance their existing high-interest commitments and reduce the interest and fees they pay on them. With our mortgage loan, you can significantly reduce your ongoing payment obligations by consolidating existing high-interest commitments, while also raising additional capital if necessary.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Is it possible to repay the loan earlier, and is there a penalty?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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You can repay the loan early. There is no penalty if you give three months\u2019 notice of early repayment.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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What percentage of the value of the real estate is taken into account for a mortgage loan?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Nordic Hypo offers loans against real estate collateral, where the loan amount and conditions depend on the value of the collateral and the client\u2019s solvency. For business clients and real estate developers, mortgage loans may be available for up to 90% of the value of the real estate, but the exact percentage will be determined on the basis of a case-by-case assessment.<\/span><\/p>\n

The company has been operating since 2010, but our team has over 20 years of experience in the financial sector.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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What is the difference between a mortgage loan and a loan against real estate collateral?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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A mortgage loan is a loan granted specifically against a <\/span>mortgage<\/span><\/i>, i.e. real estate collateral (usually long-term and related to real estate financing).<\/span><\/p>\n

A loan against real estate collateral is a broader concept, referring to <\/span>a loan<\/span><\/i> that\u2019s backed by real estate but can be used for various purposes (such as renovations, investments, or other major expenses). Both products offered by Nordic Hypo are based on the value of the collateral, but a mortgage loan refers specifically to the more traditional form of real estate loan.<\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Are there any income tax incentives or restrictions related to mortgage loans?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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In most cases, taking out a mortgage loan in Estonia does not automatically result in income tax incentives when using the loan money \u2013 taxation depends more on how you use the loan money (for example, investing in real estate may later affect the taxation of profits) and the tax laws in force. <\/span><\/p>\n

If you need specific tax advice, we recommend consulting a tax adviser or accountant.<\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Can mortgage loans be taken out even if the real estate is partially unrenovated or in poor condition?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Yes! You can get a mortgage loan even if your real estate needs renovation or isn\u2019t finished yet. The potential amount and conditions of the loan depend on the assessment of the value and condition of the collateral, as determined by an independent appraiser. Assessment is important because it influences the size and conditions of the loan. Generally speaking, unrenovated properties are often valued more conservatively, which may limit the maximum loan amount. <\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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What documents do I need to submit to apply for a loan for starting businesses?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Nordic Hypo\u2019s application form calls for company details such as the business name, registry code, and a representative\u2019s contacts, so you must submit proof of company registration and personal details (given names and last name, and personal identification code). <\/span><\/p>\n

In addition, we require a description of the collateral (e.g. real estate details) and information about the collateral. Nordic Hypo\u2019s consultant will give you a more detailed list of documents after reviewing your initial application.<\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Can a company take out a loan for the purchase of real estate or for making investments?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Yes. Nordic Hypo offers business mortgage loans that can be used to purchase or improve  real estate or to finance investments. The loan amount and conditions depend on the value of the collateral and the financial situation of the company.<\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Can a business loan be without collateral, or is collateral always required?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Nordic Hypo offers loans collateralised by real estate, such as mortgage loans or credit lines against real estate collateral. This means that we do require collateral, especially for larger amounts or higher risks. <\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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What is refinancing?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Refinancing means replacing existing high-interest loans with a new loan with more favourable conditions in order to lower interest costs and harmonise payments. Nordic Hypo allows you to refinance several smaller loans into a single loan collateralised by real estate.<\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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How does loan refinancing work?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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  1. You submit a refinancing application to Nordic Hypo.<\/span><\/li>\n
  2. Our loan managers assess your existing commitments and needs.<\/span><\/li>\n
  3. If the conditions are right, a new loan contract will be signed to repay the old loans.<\/span><\/li>\n
  4. Now you have a single loan with a better interest rate and payment schedule.<\/span><\/li>\n<\/ol>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    How does refinancing against real estate collateral work?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    Refinancing uses your real estate as collateral for the loan. Nordic Hypo will pay off your existing obligations with a new loan, and you will then continue to pay off a single loan with better and more transparent conditions.<\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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    Is refinancing an option if my company has a history of defaulting on payments?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    Nordic Hypo assesses each situation individually and may allow refinancing against real estate collateral even if banks have turned you down in the past.<\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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    Do I always have to get a new appraisal report when refinancing?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    Whether or not you need an appraisal report depends on the conditions of the loan you\u2019re refinancing and the collateral provided. If the loan being refinanced is collateralised by real estate, it\u2019s usually necessary to have the property appraised again to determine its value and the amount of the new loan.<\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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    How long does the refinancing process take?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    The speed of the process depends on the availability of documents and the appraisal of the real estate, but it usually takes anywhere from a few days to a couple of weeks from submitting an application to receiving a loan. The specific duration of the process depends on how quickly we receive all the necessary documents. <\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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    What should I do if my bank rejects my loan application?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    Banks can be less flexible than other financial institutions. This means you can still come to us even if your bank turns you down.<\/span><\/p>\n

    In addition, if the bank rejects your application: :<\/span><\/p>\n

      \n
    • Look into the reasons for rejection<\/b> \u2013 this may determine what can be improved (e.g. solvency, income, documentation).<\/span><\/li>\n
    • Improve your credit history or financial situation<\/b> before reapplying.<\/span><\/li>\n
    • Consult a financial adviser<\/b> or review alternative refinancing options with other financial institutions.<\/span><\/li>\n<\/ul>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

      Frequently asked questions How long has Nordic Hypo been operating? The company has been operating since 2010, but our team has over 20 years of experience in the financial sector. Are loans from Nordic Hypo secure? Security and confidentiality are essential factors in financial matters, and there can be no compromise on these issues. The […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-8417","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/nordichypo.ee\/en\/wp-json\/wp\/v2\/pages\/8417","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nordichypo.ee\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/nordichypo.ee\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/nordichypo.ee\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nordichypo.ee\/en\/wp-json\/wp\/v2\/comments?post=8417"}],"version-history":[{"count":1,"href":"https:\/\/nordichypo.ee\/en\/wp-json\/wp\/v2\/pages\/8417\/revisions"}],"predecessor-version":[{"id":8419,"href":"https:\/\/nordichypo.ee\/en\/wp-json\/wp\/v2\/pages\/8417\/revisions\/8419"}],"wp:attachment":[{"href":"https:\/\/nordichypo.ee\/en\/wp-json\/wp\/v2\/media?parent=8417"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}