Finland's Ministry of Finance has opened a consultation on legislative changes to housing finance aimed at supporting housing transactions and making it easier to change homes, including longer maximum maturities for new mortgages, greater flexibility for the mortgage loan-to-value cap, and adjustable rules for housing company loans. The draft would increase the maximum repayment term for new mortgages to 35 years from 30. It would also allow the Financial Supervisory Authority to set the mortgage loan-to-value cap at up to 95% of the home’s value for all homebuyers, compared with the current maximum of 90% for buyers other than first-time purchasers. Regulation of housing company loans could be adjusted by decree depending on cyclical conditions, with new-build borrowing capped at 60–70% of the apartments’ debt-free price, a repayment holiday of up to 1–2 years, and a maximum term of 30–35 years. The consultation closes on 24 August.
Ministry of Finance (Finland) 2025-06-30
Finland's Ministry of Finance consults on 35-year mortgages, a 95% loan-to-value cap and cyclical housing company loan limits
Finland's Ministry of Finance is consulting on legislative changes to housing finance, proposing longer mortgage maturities, increased flexibility for the loan-to-value cap, and adjustable rules for housing company loans. The draft suggests extending mortgage terms to 35 years and allowing a loan-to-value cap of up to 95%. Housing company loans may be regulated by decree, with borrowing capped at 60–70% of the debt-free price and a maximum term of 30 years.