Moving to Finland w/ Continuous RP and Mortgage?

[alexnicolas]

As it does seem unlikely I'll be able to get a declaration of citizenship, I am expecting to move to Finland with a continuous Resident Permit. Are mortgages realistic for someone new to Finland with a continuous resident permit? Given that I'll need to establish all new history in Finland as I was young when I left. I've read about 30% funds up front? Just wondering where I would land in Finland and mortgages as so much goes into mortgages these days in the U.S.

[Rip]

Some others here should have relevant personal experience. It seems safe to assume that some banks will categorically be uninterested in offering a loan to a new immigrant, the others will firstly want to know what kind of job you have.


(salary, field of work, debt, assets and family are things they are mostly interested with locals (+ what you are planning to buy)) . The local credit history is a record of debt payments NOT properly done for the past 2-5 year, a problem there makes one a person non grata pretty automatically. With a recent immigrant that information is not available, so banks are cautious.

[betelgeuse]

As it does seem unlikely I'll be able to get a declaration of citizenship, I am expecting to move to Finland with a continuous Resident Permit. Are mortgages realistic for someone new to Finland with a continuous resident permit? Given that I'll need to establish all new history in Finland as I was young when I left. I've read about 30% funds up front? Just wondering where I would land in Finland and mortgages as so much goes into mortgages these days in the U.S.

Unlikely since the banks can give a hard time in just opening an account with online banking. Usually you will need to provide some kind of collateral for 15-25% of the purchase price (depending on how the bank values the place your are buying) and at least 10% in cash. The banks are allowed to loan 100% of the purchase price if you have the collateral for it (but they usually don't). If you can find someone with Finnish history to guarantee the loan, then I can see a chance for getting a mortgage.

[Upphew]

As it does seem unlikely I'll be able to get a declaration of citizenship, I am expecting to move to Finland with a continuous Resident Permit. Are mortgages realistic for someone new to Finland with a continuous resident permit? Given that I'll need to establish all new history in Finland as I was young when I left. I've read about 30% funds up front? Just wondering where I would land in Finland and mortgages as so much goes into mortgages these days in the U.S.

Unlikely since the banks can give a hard time in just opening an account with online banking. Usually you will need to provide some kind of collateral for 15-25% of the purchase price (depending on how the bank values the place your are buying) and at least 10% in cash. The banks are allowed to loan 100% of the purchase price if you have the collateral for it (but they usually don't). If you can find someone with Finnish history to guarantee the loan, then I can see a chance for getting a mortgage.

I would think that it depends also where and what one is buying. Smallish apartment, not nowheremäki, 30% upfront, sounds quite safe for banks. If one has job to pay for the 70%.

edit. and if the brokerage is tied to bank... even more likely the bank is willing to loan.

[betelgeuse]

I would think that it depends also where and what one is buying. Smallish apartment, not nowheremäki, 30% upfront, sounds quite safe for banks. If one has job to pay for the 70%.

With jobs the banks usually want to see the trial period being over. I agree that it's quite safe for the banks but I have had friends have trouble getting an ASP-loan with plenty of savings when their contract was fixed. This leads me to believe that most of the time they are just following a strict set of rules.

[alexnicolas]

As it does seem unlikely I'll be able to get a declaration of citizenship, I am expecting to move to Finland with a continuous Resident Permit. Are mortgages realistic for someone new to Finland with a continuous resident permit? Given that I'll need to establish all new history in Finland as I was young when I left. I've read about 30% funds up front? Just wondering where I would land in Finland and mortgages as so much goes into mortgages these days in the U.S.

Unlikely since the banks can give a hard time in just opening an account with online banking. Usually you will need to provide some kind of collateral for 15-25% of the purchase price (depending on how the bank values the place your are buying) and at least 10% in cash. The banks are allowed to loan 100% of the purchase price if you have the collateral for it (but they usually don't). If you can find someone with Finnish history to guarantee the loan, then I can see a chance for getting a mortgage.

So unlikely for a Helsinki center apartment (Kamppi) in the 600,000 euro range to front 30% and get a mortgage? I'd apply of course with the bank that I would open the bank account with.

[Pursuivant]

One thing is to have a credit record, or have a "clean sheet" as in no records. Usually though to show this "clean sheet" one needs to have been a resident 2 years.

[inkku]

Expect to clarify following issues (the system has tightened considerably during the last years):

70% of the purchase value of the flat good as collateral, the rest 30% you have to provide yourself (some people can get government backed guarantee for the value of 15%)
work contract, prospects of being employed in the future
CV, work history
spending habits, bank balance, current loans, current monthly expenses
what you plan to do with the flat
they want to see the details of the flat (location, prices, potentiality for renting etc, prospective repair expenses "putkiremppa")

Banks expect you to become their customer, at least HYPO can give you loans irrespective of your bank account (but in my experience you can get a better deal from a bank)

[betelgeuse]

So unlikely for a Helsinki center apartment (Kamppi) in the 600,000 euro range to front 30% and get a mortgage? I'd apply of course with the bank that I would open the bank account with.

This is a high income sized mortgage so it can increase your chances. You might for example be able to motivate the bank that you have potential to bring other business to bring them (like money to invest through them). Probably the application will go through someone else besides a normal drone.

[GermanInHelsinki]

With the numbers mentioned the expenses for mortgage and other apartment related costs alone will of course amount to roughly the average net salary in Finland.

The OP of course has either tons of qualifications that are well-paid in Finland, or tons of stupidity.

The first step is of course to find a job. The salary will of course create another upper limit on how much a bank would be willing to give as mortgage.

[alexnicolas]

With the numbers mentioned the expenses for mortgage and other apartment related costs alone will of course amount to roughly the average net salary in Finland.

The OP of course has either tons of qualifications that are well-paid in Finland, or tons of stupidity.

The first step is of course to find a job. The salary will of course create another upper limit on how much a bank would be willing to give as mortgage.

I am bringing plenty of cash with me. I am seeing if 30% is typically accepted by banks for a center Kamppi Helsinki apartment in the 600,000 euro range for someone "new" to the country (I was born in Finland, but haven't lived there as an adult)

[alexnicolas]

So unlikely for a Helsinki center apartment (Kamppi) in the 600,000 euro range to front 30% and get a mortgage? I'd apply of course with the bank that I would open the bank account with.

This is a high income sized mortgage so it can increase your chances. You might for example be able to motivate the bank that you have potential to bring other business to bring them (like money to invest through them). Probably the application will go through someone else besides a normal drone.

It's also a brand new (completely renovated) apartment with a high rental ability. Hopefully someone with a similar experience on getting mortgages for apartments in Helsinki center can post here.

[inkku]

I wrote above what I have been asked, though for a less expensive flat (similar prospects though). It does not matter so much what is the inside condition of the flat, more what is the condition of the housing society (regarding major repair work).

Forgot to mention, that banks also require an acid test of being able to pay 6% interest on the loan, since the interests are expected to rise sometime in the future.

[GermanInHelsinki]

The bank of course expects you to pay back the complete mortgage within 20-30 years.

With the huge mortgage you want to get, you will of course have to pay between 2000 and 3000 Euro to the bank every month.

How much are the monthly payments to the housing company? You will of course have to pay that additionally.

For getting the mortgage you of course have to convince the bank that you are able to pay that much every month.

[alexnicolas]

This particular unit interests me a lot. The whole building seems to be restored very nicely and all apartments inside. Location is exactly what I want. Also similar unit is for rent in building at 4400 euros per month.

http://asunnot.oikotie.fi/myytavat-asunnot/8248815

I believe it is a good candidate for a bank mortgage property. I would imagine 30% up front would be acceptable with maybe other 10% in bank account in the mortgage bank?