Loans, loan cap and buying costs in Finland
The loan cap, debt-free price and loan share, transfer tax and why interest is no longer deductible.
Applies to: Finland. Reviewed 2026-09-25.
Key takeaways
- The loan cap is 95 per cent for all borrowers under the FSA's 2026 decision.
- Always compare the debt-free price: sales price plus the flat's share of the company's loans.
- Transfer tax is 1.5 per cent for housing shares and 3 per cent for real estate.
- Interest on loans for your own home has not been deductible since 2023.
The loan cap
In a 2026 macroprudential decision, the Financial Supervisory Authority raised the loan cap to 95 per cent of the collateral value for all borrowers. Check the decision for its start date and duration.
Banks also test that you can service the loan at a higher interest rate and a reasonable term. Ask your bank which rate it assumes.
Debt-free price and loan share
The housing company may have loans, for example for a pipe renovation. The flat's share is paid through a separate charge or can be paid off early. The price to compare is therefore the debt-free price: the sales price plus the loan share.
Buying costs and taxes
| Cost | Level |
|---|---|
| Transfer tax, housing shares | 1.5% of the debt-free price |
| Transfer tax, real estate | 3% of the price |
| First-time buyers | No exemption since 2024 |
Interest on loans for your own home is no longer deductible for tax.
Questions to ask
- How will charges rise when the company loan must be repaid?
Red flags
- A low sales price but a high loan share.
Sources
- Macroprudential decision: the housing loan cap rises to 95 per cent for all borrowers (Finanssivalvonta)
- Transfer tax (Verohallinto)
- Housing loans and interest deduction (Verohallinto)