Advices

ADVICE #174

How to receive mortgage in Finland?

Receiving mortgage in Finland by a Russian-non-resident is an extremely difficult task, although it is theoretically solvable. Finnish banks are extremely wary of are borrowers who buy an apartment or a house for permanent residence, as well as to foreigners. However, even if the credit is to be issued, its terms will be much more stringent than for citizens of Finland or at least permanently residing on its territory aliens.

The Russian can at best count on a mortgage loan in the amount of 40-60% of the collateral value of housing, issued for a period of 5-10 years. The amount of credit payments should not exceed a third of a regular income. The interest rate will be 3-5 p. p. higher than for local residents. Some banks will require a guarantee from the citizen of Finland.

The Bank is considering a loan application when specific embodiment, the purchase of real estate, backed by the preliminary agreement. The evaluation of the object is held by the borrower (several hundred Euro). In addition, the Bank requires documents proving the identity of the borrower, the documents on the property owner and proof of sufficient solvency of the potential borrower. These documents may include proof of income from Russia and information about the availability of a large property in Russia and other countries. Finnish banks can explore financial history depth for a year or two. All documents must be officially translated into the Finnish language, although the communication with the Bank may be held in English.

Every Bank and even each individual responsible person in the Bank have their own ideas about the reliability of customers, so the denial of credit in the same Bank should not result in the termination of attempts to receive mortgage in Finland: you can apply to other banks and other offices that have already refused credit by banks.

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