It has been a little more than a year since I bought an apartment in Helsinki. It was a learning experience for me, because as a non-native Finnish speaker, the whole process was quite overwhelming. My partner and I had the idea of buying the apartment in early October 2023, and we got the keys in the middle of December 2023. So it took about 2 months to research and see all the apartments, to negotiate and move into the dream home.
I usually categorize housing in Finland into 3 simple types: detached houses - omakotitalo, row houses - rivitalo, and apartments - kerrostalo (okay there are more types but please google to find out the details). Since I purchased an apartment, this post focuses only on the process of buying apartments in Finland. Note that in Finland you don't buy the apartment then "own" it but you are buying shares in the housing company.
In this post, I’m sharing everything I can remember about buying my first home in Finland. I’ve organized it in the order I wish I had followed, as advice to my past self if I could go back in time.
Disclaimer: I am NOT a real estate expert. The content of this post is based solely on my personal experience and should not be considered expert advice. Always consult a qualified professional for guidance.
Save for a down payment
To buy a home in Finland, the first requirement is having enough money (duh) e.g. for a down payment. Usually, the down payment needs to be about 5-10% of the value of the home purchasing price. One of the most effective ways to save for this is through an ASP (Asunto-Säästöpalkkio) account for first-time homeowners.
ASP saving account
The ASP saving account is a government-backed savings plan designed specifically for first-time homebuyers. It offers several benefits, including a higher interest rate on your savings compared to regular savings accounts (at least during the Covid time when interest rate was 0%, now it is different). Another advantage of the ASP account is the ability to secure a mortgage with favorable terms, such as lower interest rates or free state guarantee. The best benefit for me must be the free interest subsidy for the first 10 years (if the interest rate on the loan exceeds 3.8%, the state will pay 70% of the excess amount of interest). For example, when I purchased my apartment, the Euribor rate was 3.75%, and the bank’s margin was 0.41%, resulting in a total interest rate of 4.16%. However, because I had an ASP loan, the government’s interest subsidy reduced my rate to 3.91%. This provided me with some peace of mind, as government support helps offset potential increases in interest rates, making the loan more manageable even during periods of rate hikes.
To qualify for ASP, you must be between 15 and 44 years old, and you need to save at least €150 and up to €4,500 every quarter until you reach the minimum savings amount, which is 10% of your desired home’s purchase price. For more information on ASP accounts, visit the official ASP page.
One thing worth noting: You need to save for at least 2 years (8 quarters) before you are qualified to use the money in the account. If you’re serious about buying a home in Finland, I highly recommend saving enough in your ASP account each quarter to qualify for the maximum ASP loan. For example, in Helsinki, an individual can get an ASP loan of up to €230,000 (source here). To achieve this, you would need to save e.g. €25,600 in your ASP account, which means about €3200 per quarter (reasons explained in the next paragraph).
Maximum ASP loan amountsIf by the time you decide to buy the apartment, your ASP savings does not have enough 10% of the home purchase price, you can apply for a loan that amounts to 9x your ASP savings, then get an additional normal loan on top. I found this out the hard way T_T, that's why I highly recommend saving enough in your ASP in good time to make the most of your ASP loan benefits.
You can get a loan that is 9 times your ASP savingsTalk to the banks and ask for loan promises
After you have saved "enough" for a down payment, you should start contacting the banks and express that you are interested in getting a loan from them. I mentioned "the banks" in plural because you want to get as many offers and options as possible to get the best loan margin and loan terms.
The banks will then schedule a meeting with you. During this meeting, they’ll ask about your personal details, such as your income, job status, hobbies, interests, and criteria for your dream home. If you’ve already identified a specific home you’re interested in, the bank may request details about it to assess its value. After this meeting, the bank will review your application and provide you with a written loan promise.
A loan promise is essentially the bank’s guarantee that they’re willing to lend you a specific amount of money based on the information you’ve provided in your loan application and after the meeting. It’s like the bank saying, “We’ve got your back with €X—go find your dream home!”
Search for homes, schedule home viewings, ask questions
Search for homes
Once you have your loan promise in hand, it’s time to start searching for homes. This is one of the most exciting parts of the home-buying process, but it’s also time-consuming. Start by exploring listings on popular sites like Etuovi and Oikotie. Use the search filters to find homes that fit your criteria.
It’s important to reflect on your own requirements for a home. Think about what matters most to you, such as location—how close do you need to be to work, school, or public transport? Consider the size and layout of the home; for example, do you need multiple bedrooms, or is an open floor plan a priority? Decide whether you’re comfortable with a home that needs some fixing to be liveable, or if you prefer a new and ready home to move in immediately. Also think about outdoor spaces like balconies, if you want them or not. Features like elevators or parking spaces might also influence your decision. By defining your criteria and having a somewhat clear picture of your dream home, you’ll have a much easier time searching for a home that fits your needs and lifestyle.
Schedule home viewings
When you find a home that fits your criteria and catches your interest, schedule a viewing by following the contact details in the home description. In most cases, you can expect to hear back within 1-2 hours if they are quick, or up to 2-3 days at the latest, in my experience. This process can take some time, as coordinating a schedule that works for both you and the listing owner can be tough. To avoid delays, contact the person behind the listing as soon as possible. During the viewing, take a close look at the property and come prepared with questions to make sure it meets your needs.
Ask questions
You should come to the home viewing prepared with some important questions to ask. In Finland, one of the most important renovations is the pipe renovation, ask about when it was last done. Ask about the monthly maintenance fees (hoitovastike) and whether there are any planned renovations in the building that could increase these costs. Ask about the land ownership: is it an own plot or rented plot, as it would significantly affect the amount of monthly maintenance fees (hoitovastike). Consider the neighborhood—ask about nearby amenities like schools, supermarkets, and public transportation, whether the area feels safe and suits your lifestyle. A question I always liked to ask is "Why is this apartment on sale?", to know roughly the reason why the owner wants to give up their apartment. If they are in a rush to get rid of the home, you may have a better chance of negotiating a good price.
Normally in these home viewings, the realtor will give you all the documents about the home to review. If they don't and you like the home, you could ask for them. By reading through these documents, you should get a good idea about the conditions of the apartment complex and its financial status. Pro tip: If you really really like an apartment, find a way to talk to the property manager, he or she can give you the most updated status of the apartment complex and its financial status.
Prepare the offer and negotiate
The offer
Once you’ve found the apartment you want, the next step is to prepare and submit an offer. In Finland, offers on homes are legally binding, so it’s important to approach this step carefully.
Before making the offer in numbers, I recommend taking a look at the recent purchase prices for the homes in a specific area from this website. Just add the postal code and types of homes, you can see the sales transactions that happened in the area. This will give you a good idea of the current market prices for similar properties.
Details about recent home transactionsWhen writing your offer, it’s important to include any conditions that protect your interests. For example, you can make the offer conditional on securing financing or passing a home inspection. Be specific and clear about these conditions, as they provide an exit strategy in case something unexpected comes up. See below a part of an offer I've made:
"Hi <real estate agent name>,
We are ready to make the below offer after discussing with our bank:
Address of the flat: ABC 123 Helsinki
Buyer name(s): XXX
Address: XXX
Social security number(s): XXX
First home purchase
Offer price: xxx xxx euros (debt-free price)
Last signature date: 08.12.2023
Flat and key handover date: in combination with sales
Buyer takes over maintenance and financing charges: 1.1.2024
Penalty if no sales transaction: 1500 euros
Condition: the offer price includes a free parking space
Offer valid until: 6 p.m. 10.11.2023
Thank you, and we look forward to hearing from you."
Negotiation
Negotiation is often part of the home-buying process, and being well-prepared can make a significant difference, resulting in direct $$ saved. From experience, the process will be a little back and forth until both parties reach a number they are happy with. For me, it took about 2 weeks until we got our offer accepted. I believe one of the most effective strategies is to maintain a position of power. This means having multiple options and being ready to walk away if the deal doesn’t meet your expectations. When you aren’t overly attached to a single property, you can negotiate more confidently and potentially secure better terms.
Before deciding to buy a home in Finland, I coincidentally read "Never split the difference" by Christopher Voss and Tahl Raz. I like to believe that it helped with our negotiation process :D
Talk to the bank and finalize the home sales
Once your offer is accepted, the next step is to work with your bank to wrap up the loan process. This part is the final part of the process and can take some time, so make sure you reserve enough time for this. Let your bank know right away after your offer has been accepted so they can start working on the loan paperwork.
The bank might ask you for updated documents about your finances or more details about the apartment. Be ready to provide what they need quickly, as this can help speed things up. From my experience, at least 2 weeks minimum for this part until the signing date.
At this point, most of the process happens in the background between the bank and the realtor. The bank will communicate with the realtor to assess the home and gather all the necessary documents. Meanwhile, the realtor will provide you with the sales documents.
Take your time to carefully review these documents. If you notice any errors or missing information, ask the realtor to make the necessary corrections. Once the documents are accurate and fully updated, you’ll be ready to sign the sales agreement.
Depending on the seller, the signing process can be done either electronically or in person. In our case, we signed electronically, which was quick and convenient. After the signing, the bank will handle the money transfer to the seller, finalizing the transaction.
Prepare some extra money to pay for all the processing fees, guarantee fees, bank fees,...I cannot remember the exact number anymore but about 2-3k euros should be fine. The bank will also offer some extra insurances for your home, and it's up to you to decide if you want them as part of your monthly payment.
After signing and the transaction concluded, we went to the housing company to pick up the keys. Just like that, we became homeowners!!
Move to your new home
Once everything is finalized, it’s time to wrap up the final steps and settle into your new home. Start by canceling your current rental contract, giving notice according to the terms of your rental agreement. Also start packing and cleaning the rental. This process could easily take a week and knock you out because moving is exhausting T.T
As you move out of your old place and into your new home, there are a few practical tasks to take care of. Set up an electricity contract for your new address, confirm parking arrangements if needed, and start paying the hoitovastike (maintenance fee) to your housing company. Make sure to get the contact details of the property manager in case you need assistance later. Don’t forget to file the transfer tax with Vero (the Finnish tax authority) within 2 months from signing the contract to avoid penalties. Luckily for us, we bought in 2023 where there was no transfer tax for first-time homeowners.
Final words
Buying a home is a big milestone. It was a lot of work and the amount of information was overwhelming. Full disclosure: we got help from a professional who helped us read through all the Finnish documents and reviewed all the important information. Their support helped us feel more confident throughout the process.
After living in the new home for a year, I have been really happy about the decision to buy a home. The debate between renting and buying will go on and on, but for me, there’s something special about coming home to a place that’s "mine". I enjoy decorating, paying off the mortgage, and knowing I have a reliable place to return to.
I hope that by sharing my experience, I can help someone else feel more confident in finding their dream home in Finland. Best of luck on your journey—cheers!
