Buying my own home

Buying a home is one of the major investments in life. These instructions will guide you forward.

  • 1. Chart your own financial position

    Determine your income, expenses and assets. This way you will know how much money you can spend on housing expenses and buying an apartment.

    Everyone’s situation is always uniquely assessed at the bank, and many things will affect your ability to get a housing loan. These include, for example, your income, expenses, liabilities, savings and collateral.

    The most important thing is that your ability to repay the loan is in order. In addition, you will need your own savings or other collateral. For us, it is important that the loan suits your life in such a way that you can also do other things that are important to you and prepare for the future in a smart way.

  • 2. You need your own savings

    Granting the loan usually requires that you have your savings or can offer an additional security for the loan. In major towns, the home can serve as the collateral for a maximum of 70–80% of the trade price. If you need a loan greater than this, for example for renovation, you will also need additional collateral.

    The amount of your own savings or additional collateral depends on the home that is being bought and usually amounts to 20–30% of the price of the purchase.

    Most often the parents’ home or other property is used as the additional collateral. Alternatively, a chargeable loan guarantee from an insurance company can be applied.

    A loan cap determines the amount of the home loan granted. For a buyer of a first home, it can be at most 95% of the value of the collateral assigned to the loan. In other words, you must have at least 5% of the price as your own savings or other collateral. For those buying something else than their first home, the amount of loan can be at most 90% of the value of the collateral assigned to the loan.

    Example:
    The selling price of the home is €200,000. According to the above percentages, the home can serve as a collateral for a loan of €140,000–160,000. In addition to the purchased home, you will also need your own savings or other collateral for the loan for approximately €40,000–60,000.

    Come talk to us about buying a home. You can also apply for chargeable loan guarantee, which may eliminate your need to ask for additional collateral from your parents, for example.

  • 3. ASP for the buyer of a first home

    ASP is a Finnish bonus system for home savers. It is intended for people aged 15–39, buying their first home.

    If you are looking to buy your first own home, it is worthwhile becoming an ASP saver. If you have saved at least €150–€3,000/quarter for eight calendar quarters and, at the same time, at least 10% of the price of the dwelling, you can qualify for a low-cost ASP loan guaranteed by the state. In addition to the normal 1% interest on your ASP savings, we will pay you an extra interest of 4% if the terms of the home saver bonus agreement are met and the dwelling is purchased.

  • 4. Ask for a loan offer

    You can apply for an initial loan offer without any commitment. This way you have an idea of what kind of a property you can look for.

    Loan application: Apply for a loan in eBanking or book a meeting

  • 5. Examine your dream home carefully

    Although it may be love at first sight, do not let the first impression catch you off guard. Study the apartment or house carefully. We will be glad to assist you in assessing the financial position of the housing company, as well. We have prepared a model for you for assessing the economy of the housing company, which you can use as a checklist or fill out and take with you to a loan negotiation.

    What kinds of homes are being sold? 

    Learn about the home offers in your region. The real-estate agency Kiinteistömaailma, a partner of Danske Bank, is a reliable partner for you when buying or selling a home. If you are thinking about changing homes, invite a representative of Kiinteistömaailma for a free home visit.

    Kiinteistömaailma.fi

  • 6. Get the right amount of home credit

    A housing loan is always a major financial decision and should match your economy as well as possible so that you can also fulfil your other dreams and prepare for the future. There is no point living in the home of your dreams but missing out on everything else because of the loan.

    Housing loan: Learn more

  • 7. Sort out your insurance coverage

    Remember to update your insurance coverage according to your new home and life situation. Join the Danske Benefit Programme to receive considerable benefits with Fennia insurance products, as well.

    Loan Insurance secures the repayment of your loan even in unexpected life situations. Loan Insurance is needed particularly when you alone are responsible for the repayment of a loan or only one of the debtors is going to work Amidst a crisis, you can focus your effort on something else than rearranging the loan or selling the home.

    Insurance: Learn about Fennia insurance services (in Finnish)
    Loan Insurance: Read more

  • 8. Follow the development of your financial situation

    When you start planning life in your new home, it is important that you also monitor your new financial situation so that you stay within the economy you planned. If there are changes in your life situation, remember to make use of the flexibility options for the loan. You can always contact the bank if you are having doubts about your life situation.

Questions about buying a first new home