Housing Finance Policy

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    A. Legal and Regulatory Framework

    A.1 Legal and Regulatory Framework
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    Basis of the legal system: Civil, Common, Islamic, Other? (Describe)CivilCivilCivil
    Council of Europe
    		A.1.1
    Are there specific laws that deal with mortgages? YesYesYes
    Act on Mortgage Credit Banks
    		A.1.2
    Registration/Transfer of titles:A.1.3
    Does the law clearly define different types of property rights?YesYesYes
    Doing Business Finland
    		A.1.3.1
     Are property rights easily transferable?YesYesYes
    Country Editor
    		A.1.3.2
    Typical number of days needed for the transfer of title626262
    WDI
    		A.1.3.4
    Can liens be effectively enforced?YesYesYes
    Research
    		A.1.4
    Number of months until lender acquires the property in case of foreclosure on a single-family residential property?222
    European Commission 2011
    		A.1.4.1
    Are there legal constraints on mortgage features?YesYesYes
    IMF Finland FSA Report
    		A.1.6
    Loan-to-Value capYesYesYes
    IMF Finland FSA Report
    		A.1.6.2
    Are there consumer rights for mortgage lending? YesYesYes
    KKV
    		A.1.7
    Are there disclosure requirements for mortgage lending?YesYesYes
    KKV
    		A.1.8
    Is there specialized legislation covering:A.1.9
    Issuance of covered mortgage bondsYesYesYes
    Nykredit Realkredit A/S
    		A.1.9.1
    B. Housing Finance Subsidies
    B.1 Subsidies to Housing Finance Institutions
    B.2 Subsidies to Households
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    Are there subsidies to households on housing finance?YesYesYes
    Housing Finance and Development Centre of Finland
    		B.2.1
    Interest rate subsidies by special government fundsYesYesYes
    Housing Finance and Development Centre of Finland
    		B.2.1.1
    Mortgage interest deductibility from income taxYesYesYes
    Vero Skatt
    		B.2.1.5
    OtherYesYesYes
    KELA
    		B.2.1.6
    Reach of subsidies in 2.1.1 to 2.1.4 ?B.2.2
    C. Taxation
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    What taxes apply to Residential Real Estate?C.1
    Tax on property (home-owners) YesYesYes
    KTI
    		C.1.1
    Property transaction taxes (purchase/selling)YesYesYes
    Hypostat2019
    		C.1.2
    Tax on capital gains on property YesYesYes
    KTI
    		C.1.5
    OtherYesYesYes
    KTI
    		C.1.6
    Are there tax benefits on rental properties?YesYesYes
    KTI
    		C.2
    back to top | Country Data:
    Notes: The loanto-value cap on mortgage loans limits a housing loan to a maximum of 90% (95% for first time home buyers)
    Notes: 30% for owner's income up to €30,000 and 34% for income exceeding that. exempt if the taxpayer has owned and lived in the home for 2+ yrs.
    Notes: Depends on municipality and type of property. Taxable value defined separately for the building and the land.
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Financial costs directly related to investment income are deductible
    Notes: Financial costs directly related to investment income are deductible
    Notes: rental income is subject to Capital Income Tax of 30%. Starting in 2015, Capital Income exceeding 30,000 Euros is taxed at 34%
    Notes: The lender must provide all essential details of the consumer credit agreement and consumer rights well in advance of the conclusion of the credit agreement. The details must be supplied on a permanently storable copy (in writing and electronically) using the Standard European Consumer Credit Information form so that the consumer can save or print out the information
    Notes: The lender must provide all essential details of the consumer credit agreement and consumer rights well in advance of the conclusion of the credit agreement. The details must be supplied on a permanently storable copy (in writing and electronically) using the Standard European Consumer Credit Information form so that the consumer can save or print out the information
    Notes: The National Housing Fund approves interest subsidy-loans
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    Notes: (2010=100)
    Notes: 2% transaction tax for apartments, 4% for real estates
    Notes: 2% transaction tax for apartments, 4% for real estates
    Notes: 2% transaction tax for apartments, 4% for real estates
    Notes: 30% (34% on income exceeding €30,000)
    Notes: 30% for owner's income up to €30,000 and 34% for income exceeding that. exempt if the taxpayer has owned and lived in the home for 2+ yrs.
    Notes: 90% of all the loans are variable with 12-month Euribor rate
    Notes: Act on Mortgage Credit Banks
    Notes: ARA gives interest subsidy loans, which are granted by a bank or other financial institution. ARA accepts the loan thereby giving the loan a state guarantee and paying the interest subsidies.
    Notes: ARA gives interest subsidy loans, which are granted by a bank or other financial institution. ARA accepts the loan thereby giving the loan a state guarantee and paying the interest subsidies.
    Notes: ARA gives interest subsidy loans, which are granted by a bank or other financial institution. ARA accepts the loan thereby giving the loan a state guarantee and paying the interest subsidies.
    Notes: ARA gives interest subsidy loans, which are granted by a bank or other financial institution. ARA accepts the loan thereby giving the loan a state guarantee and paying the interest subsidies.
    Notes: Capital gains tax levied at 30%
    Notes: Capital gains tax levied at 30%
    Notes: Depends on municipality and type of property. Taxable value defined separately for the building and the land.
    Notes: Dwelling units with mortgages over total dwelling units
    Notes: Dwelling units with mortgages over total dwelling units
    Notes: Dwelling units with mortgages over total dwelling units; Whole country
    Notes: Even lower for LTV<90%
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Financial costs directly related to investment income are deductible
    Notes: Financial costs directly related to investment income are deductible
    Notes: Financial costs directly related to investment income are deductible
    Notes: General Housing allowance is granted for general housing costs such as rent/mortgage and upkeep costs
    Notes: General Housing allowance is granted for general housing costs such as rent/mortgage and upkeep costs
    Notes: General Housing allowance is granted for general housing costs such as rent/mortgage and upkeep costs
    Notes: Harmonized Euro Area Rates, New Business, Deposits, Households, Agreed Maturity, Up to 1 Year
    Notes: Harmonized Euro Area Rates, New Business, Loans, Households, Consumption, Floating Rate and up to 1 Year
    Notes: Housing loans over loans from credit institutions without municipal finance
    Notes: Housing loans over loans from credit institutions without municipal finance
    Notes: Housing loans over loans from credit institutions without municipal finance
    Notes: Housing loans over loans from credit institutions without municipal finance
    Notes: Housing loans over loans from credit institutions without municipal finance
    Notes: Housing loans over loans from credit institutions without municipal finance
    Notes: Housing loans over loans from credit institutions without municipal finance
    Notes: Housing loans over loans from credit institutions without municipal finance
    Notes: Housing loans over loans from credit institutions without municipal finance
    Notes: Housing loans over loans from credit institutions without municipal finance
    Notes: Housing loans over loans from credit institutions without municipal finance
    Notes: Housing loans over loans from credit institutions without municipal finance
    Notes: Housing loans over loans from credit institutions without municipal finance
    Notes: Housing loans over loans from credit institutions without municipal finance
    Notes: Housing loans over loans from credit institutions without municipal finance
    Notes: Housing loans/loans from credit insitutions without municipal finance
    Notes: In Finland, a mandatory two-month minimum waiting period applies before a lender can sell the shares in Finnish residential housing companies - These shares qualify as a mortgage security on residential property.
    Notes: In Finland, a mandatory two-month minimum waiting period applies before a lender can sell the shares in Finnish residential housing companies - These shares qualify as a mortgage security on residential property.
    Notes: In Finland, a mandatory two-month minimum waiting period applies before a lender can sell the shares in Finnish residential housing companies - These shares qualify as a mortgage security on residential property.
    Notes: In Finland, a mandatory two-month minimum waiting period applies before a lender can sell the shares in Finnish residential housing companies - These shares qualify as a mortgage security on residential property.
    Notes: In Finland, a mandatory two-month minimum waiting period applies before a lender can sell the shares in Finnish residential housing companies - These shares qualify as a mortgage security on residential property.
    Notes: In Finland, a mandatory two-month minimum waiting period applies before a lender can sell the shares in Finnish residential housing companies - These shares qualify as a mortgage security on residential property.
    Notes: In Finland, a mandatory two-month minimum waiting period applies before a lender can sell the shares in Finnish residential housing companies - These shares qualify as a mortgage security on residential property.
    Notes: In Finland, a mandatory two-month minimum waiting period applies before a lender can sell the shares in Finnish residential housing companies - These shares qualify as a mortgage security on residential property.
    Notes: Interest expenses on housing loans are tax deductible up to 35% of total interest payment
    Notes: LTV capped at 90% by Finnish Financial Supervisory Authority
    Notes: LTV capped at 90% by Finnish Financial Supervisory Authority
    Notes: LTV capped at 90% by Finnish Financial Supervisory Authority
    Notes: LTV capped at 90% by Finnish Financial Supervisory Authority
    Notes: LTV capped at 90% by Finnish Financial Supervisory Authority. In June 2016, a maximum LTV ratio of 95% will be set for first-time buyers
    Notes: Median disposable income converted to USD using average exchange rate
    Notes: Median disposable income converted to USD using average exchange rate
    Notes: Median disposable income converted to USD using average exchange rate
    Notes: median disposable income, converted from EURO to USD with yearly average exchange rate
    Notes: median disposable income, converted from EURO to USD with yearly average exchange rate
    Notes: median disposable income, converted from EURO to USD with yearly average exchange rate
    Notes: median disposable income, converted from EURO to USD with yearly average exchange rate
    Notes: median disposable income, converted from EURO to USD with yearly average exchange rate
    Notes: median disposable income, converted from EURO to USD with yearly average exchange rate
    Notes: median disposable income, converted from EURO to USD with yearly average exchange rate
    Notes: median disposable income, converted from EURO to USD with yearly average exchange rate
    Notes: median disposable income, converted from EURO to USD with yearly average exchange rate
    Notes: median disposable income, converted from EURO to USD with yearly average exchange rate
    Notes: median disposable income, converted from EURO to USD with yearly average exchange rate
    Notes: median disposable income, converted from EURO to USD with yearly average exchange rate
    Notes: median disposable income, converted from EURO to USD with yearly average exchange rate
    Notes: median disposable income, converted from EURO to USD with yearly average exchange rate
    Notes: median disposable income, converted from EURO to USD with yearly average exchange rate
    Notes: median disposable income, converted from EURO to USD with yearly average exchange rate
    Notes: median disposable income, converted from EURO to USD with yearly average exchange rate
    Notes: National percentage
    Notes: National percentage
    Notes: National percentage
    Notes: National percentage
    Notes: National percentage, owner occupied units over total dwelling units
    Notes: National percentage, owner occupied units over total dwelling units
    Notes: Nominal House Prices Annual % change
    Notes: Nominal House Prices Annual % change
    Notes: Nominal House Prices Annual % change
    Notes: Nominal House Prices Annual % change
    Notes: Nominal House Prices Annual % change
    Notes: Nominal House Prices Annual % change
    Notes: Number of building permits granted as a national number
    Notes: Number of building permits granted as a national number
    Notes: Number of building permits granted as a national number
    Notes: Number of building permits granted as a national number
    Notes: Number of building permits granted as a national number
    Notes: Number of building permits granted as a national number
    Notes: Number of building permits granted as a national number
    Notes: Number of transactions of dwellings in the whole country
    Notes: Number of transactions of dwellings in the whole country
    Notes: Number of transactions of dwellings in the whole country
    Notes: Number of transactions of dwellings in the whole country
    Notes: Number of transactions of dwellings in the whole country
    Notes: Real property tax is based on the value of the property (generally 70% of market value)
    Notes: Real property tax is based on the value of the property (generally 70% of market value)
    Notes: Rental income is subject to Capital Income Tax of 30%.
    Notes: Rental income is subject to Capital Income Tax of 30%. Starting in 2015, Capital Income exceeding 30,000 Euros is taxed at 34%
    Notes: rental income is subject to Capital Income Tax of 30%. Starting in 2015, Capital Income exceeding 30,000 Euros is taxed at 34%
    Notes: rental income is subject to Capital Income Tax of 30%. Starting in 2015, Capital Income exceeding 30,000 Euros is taxed at 34%
    Notes: right of occupancy dwellings, other, and unknown in entire country
    Notes: right of occupancy dwellings, other, and unknown in entire country
    Notes: right of occupancy dwellings, other, and unknown in entire country
    Notes: right of occupancy dwellings, other, and unknown in entire country
    Notes: right of occupancy dwellings, other, and unknown in entire country
    Notes: right of occupancy dwellings, other, and unknown in entire country
    Notes: right of occupancy dwellings, other, and unknown in entire country
    Notes: right of occupancy dwellings, other, and unknown in entire country
    Notes: right of occupancy dwellings, other, and unknown in entire country
    Notes: right of occupancy dwellings, other, and unknown in entire country
    Notes: right of occupancy dwellings, other, and unknown in entire country
    Notes: right of occupancy dwellings, other, and unknown in entire country
    Notes: right of occupancy dwellings, other, and unknown in entire country
    Notes: Savings banks and Central Bank of Savings Banks Finland Ltd
    Notes: Savings banks and Central Bank of Savings Banks Finland Ltd
    Notes: Square meter
    Notes: tax exemption on Capital gains on property if the owner lives in the house for more than 2 years; First time buyers are exempted from transaction tax
    Notes: Tax incentives for House purchases are available
    Notes: Tax incentives for House purchases are available
    Notes: Tax incentives for House purchases are available
    Notes: Tax incentives for House purchases are available
    Notes: The concept of household-dwelling unit was adopted in the 1980 census. In earlier years the concept of household was used.
    Notes: The government guarantees for owner-occupied housing loans.
    Notes: The government guarantees for owner-occupied housing loans.
    Notes: The Housing Finance and Development Centre of Finland (ARA) gives interest subsidy loans, which are granted by a bank or other financial institution. The Housing Finance and Development Centre of Finland (ARA) accepts the loan thereby giving the loan a state guarantee and paying the interest subsidies.
    Notes: The lender must provide all essential details of the consumer credit agreement and consumer rights well in advance of the conclusion of the credit agreement. The details must be supplied on a permanently storable copy (in writing and electronically) using the Standard European Consumer Credit Information form so that the consumer can save or print out the information
    Notes: The lender must provide all essential details of the consumer credit agreement and consumer rights well in advance of the conclusion of the credit agreement. The details must be supplied on a permanently storable copy (in writing and electronically) using the Standard European Consumer Credit Information form so that the consumer can save or print out the information
    Notes: The lender must provide all essential details of the consumer credit agreement and consumer rights well in advance of the conclusion of the credit agreement. The details must be supplied on a permanently storable copy (in writing and electronically) using the Standard European Consumer Credit Information form so that the consumer can save or print out the information
    Notes: The mortgage society of Finland
    Notes: The National Housing Fund approves interest subsidy-loans
    Notes: The National Housing Fund approves interest subsidy-loans
    Notes: The National Housing Fund approves interest subsidy-loans
    Notes: The National Housing Fund approves interest subsidy-loans
    Notes: The National Housing Fund approves interest subsidy-loans
    Notes: The National Housing Fund approves interest subsidy-loans
    Notes: Whole country
    Notes: Whole country
    Notes: Yearly Average by Monthly Rate
    Notes: Yearly Average by Monthly Rate
    Notes: Yearly Average by Monthly Rate
    Notes: Yearly Average by Monthly Rate
    Notes: Yearly Average by Monthly Rate