Bill approval
Limitations on loans to households and housing companies to be introduced at the beginning of July

In future, new housing loans will have to be repaid in a maximum of 30 years. The new legislation will also limit loans to housing companies. The President of the Republic approved the bills on Thursday 16 February.

The reform aims to curb household indebtedness. The acts will enter into force at the beginning of July.

Key changes:

• the maximum maturity period of new housing loans will be 30 years;
• in new construction, housing companies will be permitted to borrow at most 60 per cent of the unencumbered price of the flats to be sold;
• the maximum maturity period of loans to housing companies will be 30 years; no interest-only periods will be permitted for five years from the completion of the dwelling, except during the first year.

However, the rules are flexible so that a bank will be able, for example, to deviate from the maximum maturity period in ten per cent of lending. Payment arrangements will also be possible. The legislation does not include a maximum debt-to-income ratio, also called a debt ceiling.

Inquiries:

Iida Hauhia, Senior Specialist, tel. +358 295 530 606, iida.hauhia(at)gov.fi

Pauli Kariniemi, Director General, tel. +358 295 530 210, pauli.kariniemi(at)gov.fi