Need help: housing loan in Finland

[masudulcse]

Hello All,'

Anyone applied housing loan recently in Finland without Permanent residence? Is it mandatory to have Permanent residence to get housing loan?

Looking your experience.

Thanks in advance.

Thanking with,
Masudul

[Upphew]

Hello All,'

Anyone applied housing loan recently in Finland without Permanent residence? Is it mandatory to have Permanent residence to get housing loan?

Looking your experience.

Thanks in advance.

Thanking with,
Masudul

Think it from the point of view of a bank. Would you loan money to someone without permanent RP? Probably if the job and guarantees would be good enough?

[daria2910]

Yes, its possible if your income are high enough and you work agreement is quit long, at least few years long.
I know it cause I took one recently.
Greats

[humax]

Sure its possible,

I got one in 2011 with a student permit and by then I had lived in Finland for less than 3 years.It depends with the bank and the person you will find.Try Danske bank they have good deals and maybe Nordea.

[masudulcse]

Thanks all of you, I am living here in Finland since May, 2012 and I have job from Feb, 2012 (Took few month to get Residence) and my job contract is open with my employee so its permanent job. I have even 4 years visa now and I dis cussed with Nordia but they told without permanent residence they are not able to give loan to me . I was surprise about this because I know 2 person who got loan without permanent visa ofcourse they took few years back. Seems I have to try some other bank. please advice.

[masoom3001]

Thanks all of you, I am living here in Finland since May, 2012 and I have job from Feb, 2012 (Took few month to get Residence) and my job contract is open with my employee so its permanent job. I have even 4 years visa now and I dis cussed with Nordia but they told without permanent residence they are not able to give loan to me . I was surprise about this because I know 2 person who got loan without permanent visa ofcourse they took few years back. Seems I have to try some other bank. please advice.

You should feel lucky that they did not ask you to recruit official translator to go through the process. I have been in Finland from 2009 and since then I have an account in Nordea. And my wife has a certificate on Finnish language(level: intermediate, which is the required language requirement for Finnish citizenship). But they are asking us to provide a certificate which will state that we have language skill of advance level or we need to recruit official translator to have a house loan from Nordea.

In short, avoid Nordea if you have a long term plan in Finland. They may provide good service on daily basis. But if you consider to take house loan you should consider bank like OP(www.op.fi/) or some other bank.

[Rip]

Was their refusal truly categorical, or did partly depend on factors like how large loan you wanted and how much of your own money you had available for purchase?

[masudulcse]

Thanks all of you, I am living here in Finland since May, 2012 and I have job from Feb, 2012 (Took few month to get Residence) and my job contract is open with my employee so its permanent job. I have even 4 years visa now and I dis cussed with Nordia but they told without permanent residence they are not able to give loan to me . I was surprise about this because I know 2 person who got loan without permanent visa ofcourse they took few years back. Seems I have to try some other bank. please advice.

You should feel lucky that they did not ask you to recruit official translator to go through the process. I have been in Finland from 2009 and since then I have an account in Nordea. And my wife has a certificate on Finnish language(level: intermediate, which is the required language requirement for Finnish citizenship). But they are asking us to provide a certificate which will state that we have language skill of advance level or we need to recruit official translator to have a house loan from Nordea.

In short, avoid Nordea if you have a long term plan in Finland. They may provide good service on daily basis. But if you consider to take house loan you should consider bank like OP(http://www.op.fi/) or some other bank.

Thanks for your information.

yes I will never try in Nordia ... I have an appointment OP, hope they will give me better explanation atleast if not able to provide the loan.

[masudulcse]

Was their refusal truly categorical, or did partly depend on factors like how large loan you wanted and how much of your own money you had available for purchase?

Thanks, Actually they did not told me about amount how much they can give, btw I have around 15% my own money. I need rest of the money. They simply told me that I need permanent residence to get loan.

[Adrian42]

I am living here in Finland since May, 2012 and I have job from Feb, 2012 (Took few month to get Residence) and my job contract is open with my employee so its permanent job.

As soon as the company gets into small troubles there's usually YT, and that gives the company the right to fire you.

Was their refusal truly categorical, or did partly depend on factors like how large loan you wanted and how much of your own money you had available for purchase?

Thanks, Actually they did not told me about amount how much they can give, btw I have around 15% my own money. I need rest of the money. They simply told me that I need permanent residence to get loan.

Nordea write on their webpage that you need 25%.

In general Finnish banks are currently quite cautious about giving out housing loans - which is perfectly reasonable considering that the interest for variable-interest loans might quadruple during the next 3 years, resulting in declining apartment prices.

Assume you lose your job, and at the same time the interest rate of your load quadruples.
How do you expect to pay back the loan in that situation?

Buying an apartment with only 15% of own money is a huge gamble, and even if a bank would give you a loan it would be a huge risk for you that could bring you into insolvency unless everything goes as planned.

[Adrian42]

Thanks all of you, I am living here in Finland since May, 2012 and I have job from Feb, 2012 (Took few month to get Residence) and my job contract is open with my employee so its permanent job. I have even 4 years visa now and I dis cussed with Nordia but they told without permanent residence they are not able to give loan to me . I was surprise about this because I know 2 person who got loan without permanent visa ofcourse they took few years back. Seems I have to try some other bank. please advice.

You should feel lucky that they did not ask you to recruit official translator to go through the process. I have been in Finland from 2009 and since then I have an account in Nordea. And my wife has a certificate on Finnish language(level: intermediate, which is the required language requirement for Finnish citizenship).

A person who knows Finnish only at the intermediate level required for citizenship is not expected to be able to fully understand texts on unfamiliar topics like housing loans.

But they are asking us to provide a certificate which will state that we have language skill of advance level or we need to recruit official translator to have a house loan from Nordea.

That actually sounds like a good idea to me - much better than if you sign something you don't fully understand and then whine 3 years later when the interest on your housing loan quadruples.

[tjawatts]

Nordea has most of their loan documentation available in English, at least they did when I took my loan.

Regarding the deposit, yes 75% is always covered by the value of the property. I think you can probably still get a state guarantee (when I had it was 10%). So 15% deposit should be doable.

T

[masudulcse]

I am living here in Finland since May, 2012 and I have job from Feb, 2012 (Took few month to get Residence) and my job contract is open with my employee so its permanent job.

As soon as the company gets into small troubles there's usually YT, and that gives the company the right to fire you.

Yes this can happen at any time even after get permanent residence isn't it? what is the relationship with PR and loan here?

Thanks, Actually they did not told me about amount how much they can give, btw I have around 15% my own money. I need rest of the money. They simply told me that I need permanent residence to get loan.

Nordea write on their webpage that you need 25%.

In general Finnish banks are currently quite cautious about giving out housing loans - which is perfectly reasonable considering that the interest for variable-interest loans might quadruple during the next 3 years, resulting in declining apartment prices.

Assume you lose your job, and at the same time the interest rate of your load quadruples.
How do you expect to pay back the loan in that situation?

Buying an apartment with only 15% of own money is a huge gamble, and even if a bank would give you a loan it would be a huge risk for you that could bring you into insolvency unless everything goes as planned.

If was good to hear from Nodea that 15% is not enough so save more money and come back but actual answer was I need residence permit to get the loan.

I am not sure how much money is suitable for buying a apartment here in Finland but I bought my previous apartment with 25% money in my home country and rest of money was from Bank loan without any problem. But here in Finland you can buy guaranty from government with additional money and all together it is apartment+maximum government guaranty= 85%. So I need 15%, isn't it?

I suppose main reason is economical situation is not good at this moment as you mentioned so they are not willing to give loan until some one has really strong background and ofcourse living in Finland longer or Finnish citizen.

[Adrian42]

I am living here in Finland since May, 2012 and I have job from Feb, 2012 (Took few month to get Residence) and my job contract is open with my employee so its permanent job.

As soon as the company gets into small troubles there's usually YT, and that gives the company the right to fire you.

Yes this can happen at any time even after get permanent residence isn't it? what is the relationship with PR and loan here?

With no PR and no job you will not get a new RP.

I suppose main reason is economical situation is not good at this moment as you mentioned so they are not willing to give loan until some one has really strong background and ofcourse living in Finland longer or Finnish citizen.

Bad economy, high unemployment, and signs that there currently is a housing bubble in Finland.

In 3 years:
- you might be unemployed and
- the interest rate for your loan might have quadrupled and
- your apartment might be 30% less worth than today.

The ECB has no choice but increasing the interest levels in the Eurozone to sane values again soon, or the next crises will start even before the current ones have ended.
If interest rates go back to their normal pre-crisis levels, the interest for variable Euribor+1% interest rates will quadruple.

Combine high unemployment with quadrupled interest rates, and apartment prices will likely go down since there won't be many buyers at that point.

When a bank is today cautious about giving out housing loans in the current situation that is a good sign, since otherwise we might see exactly the same problems as in the US, Ireland or Spain also in Finland.

[masudulcse]

Yes this can happen at any time even after get permanent residence isn't it? what is the relationship with PR and loan here?

With no PR and no job you will not get a new RP.

Again this is nothing to do with PR and returning loan money back to bank. No job no money and finally you can not pay the back the loan, this can happen in any time...

Combine high unemployment with quadrupled interest rates, and apartment prices will likely go down since there won't be many buyers at that point.

I think this is good for me if apartment price goes down but I am hoping within short time Finland will have less unemployment.

When a bank is today cautious about giving out housing loans in the current situation that is a good sign, since otherwise we might see exactly the same problems as in the US, Ireland or Spain also in Finland.

Yes, I agree this will good but they should apply cautious for every one not only for foreigners, then only we might not see exactly the same problem...