Lisäluotot

Lisäluotot, a Finnish term, translates to "additional loans" or "supplementary credits." In essence, it refers to any loan or credit facility that is taken out in addition to an existing primary loan. This concept is most commonly encountered in the context of mortgages or other significant secured loans.

When a borrower has an existing mortgage, a lisäluotto might be a separate loan taken out against the same property, often with the same lender. It could be used for various purposes, such as home renovations, consolidating other debts, or covering unexpected expenses. The terms and interest rates of a lisäluotto can differ from the original mortgage, depending on the lender's assessment of the borrower's creditworthiness and the loan's purpose.

The primary function of a lisäluotto is to provide additional financial flexibility without the need to refinance the entire original loan. However, it's important for borrowers to understand that taking out a lisäluotto increases their overall debt burden. This means higher monthly payments and a greater total amount of interest paid over time. Lenders typically assess the borrower's ability to manage the increased debt before approving a lisäluotto. The collateral for the lisäluotto is usually the same property that secures the original loan, meaning the property is encumbered by multiple loans.