Investor Presentaiton
Underwriting criteria - common
common Nordea policy
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Residential mortgage loans
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Nordea's credit decision is based on the borrower's payment capacity and collateral is always taken.
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Collateral must be in the form of mortgages in real estate or in shares in housing companies.
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Repayment ability of borrowers is calculated using stressed scenarios.
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Credit bureau check is always conducted (Suomen Asiakastieto).
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Individual valuation of property based on market value.
Commercial mortgage loans
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Borrowers with strong EBITDA/debt and cash flow based on e.g. long-term high quality lease contracts and
adequate interest rate hedging.
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Individual credit decision based on credit policy and rating.
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An evaluation of all property-related commitments is performed in the ordinary annual review against a
background of quality issues/risk factors regarding the property itself, the lease, the management, the long-
term cash flow and -strength of balance sheet/gearing. The analysis focuses on the repayment capacity.
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Nordea
Individual valuation of property based on market value.
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