Laina (Loan)

Detailed explanation

Finnish banks offer various loan products, but the mortgage is by far the most common and important. Finnish mortgages are typically linked to the Euribor interest rate plus a bank margin. Loan terms can extend up to 25–30 years, and banks generally require a down payment of at least 15% of the property value (5% for first-time buyers after certain conditions).

To obtain a loan, banks evaluate your income stability, employment type (permanent contract strongly preferred), existing debts, and credit history. For international residents, having a permanent employment contract and several years of Finnish work history significantly improves your chances.

How it affects expats

• •Permanent contract preferred: Banks strongly favor applicants with a permanent (toistaiseksi voimassa oleva) employment contract

• •Income verification: You need payslips and tax records, typically from the past 1–2 years in Finland

• •Credit history: Finnish banks check your record with Suomen Asiakastieto; a clean record is essential

• •Residence permit: A continuous or permanent residence permit improves your eligibility

• •Language: Loan documents are typically in Finnish or Swedish, so consider having them reviewed by someone fluent

Key details

• •Asuntolaina (mortgage): 15% down payment typically required, terms up to 25–30 years

• •Opintolaina (student loan): Government-guaranteed loan for students, currently up to €650/month

• •Kulutusluotto (consumer loan): Higher interest rates, shorter terms, used for purchases

• •Interest deduction: Limited tax deductibility of mortgage interest

• •check current rules with Vero

Related terms

• •Korko (Interest Rate) — Euribor-linked Finnish rates

• •Luottotiedot (Credit Record) — Finnish credit history

• •Pankkitili (Bank Account) — bank account basics