Approval of a bill
Reform of housing finance regulation supports housing market through added flexibility
The maximum term of new housing loans will be increased to 40 years. This new legislation seeks to boost the housing market and construction. The Government has proposed that the bill be approved by the President of the Republic and enter into force on 1 June.
Increasing the maximum term of housing loans from 30 to 40 years will reduce the monthly payments of many borrowers or enable them to take out larger loans.
The Financial Supervisory Authority will be allowed to cap housing loans at a maximum of 95 per cent. The previous cap was a maximum of 90 per cent for everyone except first-time homebuyers.
The bill would allow the terms of loans to housing companies to be altered by government decree in response to the housing market cycle. For housing companies, the debt cap could be set between 60 and 70 per cent, the loan repayment holiday between 1 and 2 years and the maximum term of the loan between 30 and 40 years.
The reform aims to promote savings and investments, support the recovery of the housing market and construction, make it easier for people to change homes and add flexibility to the regulation of housing financing.
Inquiries:
Reima Letto, Senior Ministerial Adviser, tel. +358 295 530 426, reima.letto(at)gov.fi
Markku Puumalainen, Senior Ministerial Adviser, tel. +358 295 530 206, markku.puumalainen(at)gov.fi