Financing your apartment purchase
There are multiple ways to finance your apartment purchase.
Here are a few options:
Bank Loan (Housing Loan)
Most apartment purchases are financed by bank loans. Different banks offer different terms based on the client's customership and existing savings. The expenses of living in your own apartment consist of :
- Housing Company Monthly charges (Yhtiövastike) which consists of Maintenance/Management Charge (hoitovastike) and possible Charge for financial costs / Charge for capital costs (Rahoitusvastike / Pääomavastike).
- Maintenance/Management Charge (hoitovastike) which covers the Housing Company real estate maintenance costs and heating.
- In addition to the mentioned above a Housing Company can collect different charges such as water, parking places, internet connection and common sauna usage.
Consult your bank for more information on housing loans.
Housing Company Loan
In contrast to the personal bank loan, the housing company loan does not require any personal loan arrangement nor any pledge. A housing company loan is a loan that is the liability of the housing company but not direct liability of the shareholder personally. It comes automatically with the apartment purchasing and is fixed in the purchasing agreement. Read more here.
Lehto Finance (Lehto Raha)
Lehto Finance is a service where you first live in and rent the apartment you want to buy for 12 months. With the year of renting you cover the 5% deposit required to buy the apartment.
Through Lehto Finance we make it possible to buy certain apartments marked with the Lehto Finance seal without needing to have particularly large savings. The concept works in such a way that a first-time apartment buyer can first rent and live in the apartment of his choice for 12 months, after which he can purchase it. The required 5% deposit is offset by the year’s rent, and so particularly large savings are not required.