Nowadays, there are many different providers of mortgages in Finland, so your own bank may not be the one to grant the mortgage at the best price.
Finding a cheap mortgage is not difficult, but it’s a good idea to keep in mind the basic rules to get yourself the best mortgage on the market. We will return to these rules a little further in this article. So it is definitely worth checking out what the best mortgage tips are all about.
The housing market is getting hot
The housing market has been brisk during 2018. Mortgage loans have been raised even more than last year. So people seem to be less cautious about buying a home. In some years, when economic growth was a bit uncertain, it was also reflected in the mortgage market. Perhaps the fears that are causing the economic downturn are now over and people are buying homes in Finland again. Therefore, housing sales can be expected to accelerate further.
In Finland, interest rates on mortgages have been moderate. In particular, mortgage margins have been particularly low for many borrowers in recent years. Mortgages have seen margins as low as 0.50%. The average interest rate on mortgages has been below 1%. However, interest rates may rise in the future, so now may be a good time to pay down your mortgage.
A mortgage without savings attracts many buyers precisely because of low interest rates. Usually, however, even a small hatching egg is needed, and if you are thinking of a mortgage without collateral , you will usually need a certain percentage of the total price to buy a home.
From a financial point of view, it is a good sign that housing sales are so buoyant. Many homeowners are now on the move. If you are not yet convinced about buying your own home, you should read at least the following parts.
Is it worth buying my own apartment?
Many may be a little shy about buying their own home. However, there are many benefits to owning a home. First of all, the biggest benefit of all is that when a mortgage is paid off, many euros eventually end up in the homeowner’s purse. The apartment itself is a good investment, because later on you are almost repossessed. Everyone has to pay for housing anyway, so why not raise your own wealth at the same time. The rents are so high, especially in the Helsinki metropolitan area, that you pay the same amount for a mortgage.
If you haven’t started saving for your own apartment by now, you should do it by now. You can even make a personal payment plan with your bank and before you know it you may be a new homeowner. There are many forms of government support, especially for the young first home buyer. So it’s a good idea to take advantage of this opportunity before it’s too late. For example, you should keep in mind when considering a state guarantee for a mortgage loan , since it is possible for a first-time buyer to obtain a state guarantee for their loan.
It is also worth considering the interest rate of the mortgage and considering the size of the mortgage. The size of the mortgage should always be commensurate with your own financial situation and you should not take out a mortgage that is too large. However, nowadays oversized mortgages are not so easily granted. The need for one’s own dwelling should also be assessed.
That is, before applying for a mortgage, it is worth clarifying for yourself what kind of apartment you are applying for. It’s a good idea to make a realistic plan and then start looking at homes within your own metrics. It is usually not worth bidding on a home before you have a loan promise behind you. A mortgage calculator can help you calculate your loan rates and give you a better idea of the cost of your loan before you apply for a mortgage.
A first time home buyer
If you are a first time home buyer, you have a number of benefits. First, as a first-time home buyer, you do not have to pay any transfer tax. In addition, you can get a state guarantee for your mortgage and your mortgage interest is partially tax deductible. Reducing the interest rate on a home loan can be an appealing option for a first-time buyer, and owning a home can in fact often reduce your own housing costs, as rents are often expensive, especially in the Greater Helsinki area. That’s why many young adults end up buying their own home.
In Finland, efforts have been made to make it as easy as possible for a first-time buyer to buy a home. A popular way to raise funds to buy your own home has been the so-called ASP saving, which also allows you to get an interest subsidy. In ASP Savings, you need to get a certain amount of cash and the rest of the amount you get secured with your mortgage borrowing. It is a good idea to learn more about the benefits you can get when you first buy a home.