Add listing Log in

Mortgage in Finland

Right to obtain mortgages in Finland for Russians and citizens of the same country. However, for aliens imposed more stringent requirements and conditions than local residents.
27.08.2013
Author: Maria Cooper
342
A foreigner can obtain a mortgage loan in Finland against the security of the purchased property. After the 2008 crisis and due to the difficult economic situation in European countries, Finnish banks began to be reluctant to give mortgage loans to non-residents, but there is still a chance of getting it. According to Finnish law, a non-resident can obtain a mortgage loan in Finland without a residence permit in the country. For non-residents, the interest rate is higher, the loan term is shorter, and the requirements are stricter. For Russians, mortgages are usually provided for 50% of the value of real estate and for a period of 5-15 years. For comparison, the Finns are given a mortgage loan for 20-30 years. Mortgage rates in the country, floating and fixed, range from 4% to 5.5% per year for citizens of the country, and from 5% to 8% per year for non-residents. Loans to foreigners are issued not only by Finnish banks, but also by representative offices of banks of other countries in Finland. The borrower's credit history plays an important role in obtaining a mortgage in Finland. In addition, the likelihood of receiving a positive response from a bank on the provision of a mortgage in Finland may increase if the share of funds contributed for the purchase is high. Finnish banks give loans not only for the purchase of finished real estate, but also for the construction of cottages and summer cottages. To obtain such a loan, it is necessary to open a special credit account in the bank, from which all services for construction and building materials will be paid for at the request of the borrower. In this case, the bank pays about 50% of the construction estimate, and the annual rate is about 4.5%. Bank Requirements To obtain a mortgage loan, you must fulfill the formal requirements. Finnish banks carefully consider the credit history of the borrower, it can be supported by documents from the banks from which the loan was previously taken. Having a source of permanent income is also important. For foreigners, mortgage lending is limited to a period of 5-15 years, and the minimum loan amount must be at least 50% of the value of the property. To conclude a mortgage agreement, the borrower must be at least 21 years old and not exceed 65 years old. Sometimes the assessment of the borrower's solvency differs not only in different banks in Finland, but also in the branches of the same bank. Required documents A properly selected package of documents will help to increase the chances of obtaining a mortgage in Finland. Finnish banks require a standard list of documents: - international passport; -confirmation of income: form 2 personal income tax for the last two years (the borrower's monthly earnings must be at least twice as much as the mortgage payment); -preliminary contract for the purchase and sale of real estate; - a document confirming the existence of property in Russia, if any; - documents from banks proving the timely payment of previous loans, if any. The entire set of documents must be notarized and translated into Finnish. The documents are reviewed by the bank for about two weeks. Additional costs Any bank in Finland, when issuing a mortgage, requires an appraisal of the property. The cost of such an assessment will cost about 250 euros. Bank services for the issuance of a loan will cost from 500 to 1000 euros, and the cost of document translation and notarization will not exceed 500-700 euros. Insurance costs are not very high and depend on the location of the house in Finland, the chosen insurance company and the type of insurance. Mortgage payments As a rule, mortgage payments are made monthly or quarterly from the account opened with the bank from which the loan was taken. The amount specified in the agreement will be debited from this account. In Finland, early repayment of a mortgage is possible without imposing fines from the bank, if this is specified in the contract. HomesOverseas.ru
1
All articles by this country
All articles
Property in Finland
Discussion