Should I buy or rent in Finland?

Authored by the expert who managed and guided the team behind the Finland Property Pack

Everything you need to know before buying real estate is included in our Finland Property Pack

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INVESTROPA

A team specialized in real estate investing in European countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Finland. If you'd like to learn more about us, you can check our presentation page.

What is your current financial situation and how does it affect your housing decision?

Your current financial situation is the foundation for deciding between buying and renting property in Finland.

If you have stable employment with a monthly income of at least €3,500-4,000, you may qualify for a mortgage in Finland. Finnish banks typically require your total monthly debt payments to not exceed 40-50% of your net income. For a €250,000 property purchase, you need a gross monthly income of approximately €4,200-4,500 to qualify for financing.

Your liquid savings determine whether buying is feasible. You need 10-20% down payment for a primary residence (30% for investment properties) plus additional costs of 5-8% of the purchase price for taxes, legal fees, and registration. For a €300,000 apartment, expect to pay €45,000-84,000 upfront including all costs.

If your monthly income is below €3,000 or you lack sufficient savings for a down payment, renting provides immediate housing without the substantial upfront investment. Rental applications in Finland typically require proof of income 2.5-3 times the monthly rent and a security deposit of 1-2 months' rent.

How much do you expect to earn in the next few years?

Your projected income growth significantly impacts the buy versus rent decision in Finland's current market environment.

If you expect your income to increase by 15-25% over the next 3-5 years, buying becomes more attractive as rising income can better support mortgage payments and property maintenance costs. Finland's technology sector, which employs many international workers, has shown salary growth of 5-8% annually as of September 2025.

For professionals in stable fields like healthcare, education, or engineering, consistent income projections make mortgage qualification easier. Finnish banks consider future earning potential when approving loans, particularly for skilled professionals with in-demand expertise.

If your income is uncertain or you're in a transitional career phase, renting provides flexibility without the long-term financial commitment. Rental costs remain predictable, while property ownership involves variable expenses like maintenance, repairs, and potential interest rate increases when fixed-rate periods end.

It's something we develop in our Finland property pack.

What are the typical rental prices in your target area of Finland?

Rental prices in Finland vary significantly by location, with Helsinki commanding the highest rates in the country.

What is the current property market situation in Finland?

Finland's property market is experiencing a recovery phase as of September 2025, with increased transaction volumes and growing foreign investor confidence.

The residential property market shows signs of stabilization after house prices in the Helsinki region fell by approximately 3.3% year-on-year earlier in 2025. This price adjustment has created opportunities for buyers, while market liquidity continues to improve with more properties changing hands.

Construction costs remain elevated due to material prices and labor shortages, limiting new supply and supporting price stability in established areas. The Finnish government's housing policies and low unemployment rate of around 7.2% provide fundamental market support.

Foreign investment interest has notably increased in 2025, particularly from other EU citizens taking advantage of favorable exchange rates and property price corrections. Prime Helsinki locations and growth cities like Tampere attract the most international buyer attention.

Mortgage credit availability has improved compared to 2023-2024, with banks showing more flexibility in lending criteria for qualified borrowers, making property purchases more accessible for both residents and foreign buyers.

How much would a mortgage cost you each month in Finland?

Monthly mortgage costs in Finland depend on loan amount, interest rate, loan term, and your creditworthiness as of September 2025.

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Do you have the required down payment for purchasing property in Finland?

The down payment requirement is a critical factor determining your ability to purchase property in Finland's current market.

Finnish banks require a minimum 10-20% down payment for primary residences, with higher requirements of 20-30% for investment properties or non-resident buyers. For a €300,000 apartment, you need €30,000-60,000 as a primary residence buyer or €60,000-90,000 as an investor.

Additional upfront costs include property transfer tax (2-4% depending on property type), legal fees (€1,000-2,500), property inspection (€500-800), and registration fees (€500-1,000). Total initial costs typically range from 5-8% of the purchase price beyond the down payment.

If you lack sufficient down payment funds, consider subsidized housing programs like Heka in Helsinki, which offers rental apartments at approximately €14.48/m²/month for qualified residents. Alternative options include shared ownership schemes or saving programs that help build the required capital over time.

Foreign buyers may face stricter requirements, with some banks requesting up to 30-40% down payment and proof of Finnish income or employment to qualify for favorable mortgage terms.

How long do you plan to stay in Finland?

Your planned length of stay in Finland is crucial for determining whether buying or renting makes financial sense.

If you plan to stay less than 3-4 years, renting is typically more cost-effective. The transaction costs of buying and selling property (8-12% of property value combined) require several years to recover through mortgage principal payments and property appreciation. Short-term residents avoid the risks of market fluctuations and selling pressure.

For stays of 5-7 years, buying becomes increasingly attractive as you amortize transaction costs over a longer period. The Finnish property market's moderate appreciation potential of 2-4% annually in stable areas can offset ownership costs over this timeframe.

Long-term residents planning to stay 10+ years benefit most from property ownership. You build equity through mortgage payments, enjoy potential property appreciation, and gain housing stability with predictable monthly costs after your mortgage is paid. Additionally, you can customize and renovate the property to your preferences.

Consider that selling property in Finland can take 2-6 months depending on location and market conditions, requiring advance planning if you need to relocate quickly for work or personal reasons.

What is your credit score and how does it affect your loan options in Finland?

Your creditworthiness significantly impacts mortgage availability and terms in Finland's banking system.

Finnish banks evaluate creditworthiness through income verification, employment stability, existing debt obligations, and payment history. They typically require proof of steady employment for at least 6-12 months and income documentation showing your ability to service the loan comfortably.

Non-residents and foreign nationals face stricter lending criteria, often requiring higher down payments, proof of Finnish income sources, and additional documentation. Some banks may require a Finnish guarantor or co-signer for non-resident applicants.

Poor credit history or high existing debt-to-income ratios can limit your mortgage options or result in higher interest rates. Banks generally require total monthly debt payments to remain below 40-50% of net income, including the proposed mortgage payment.

If your credit situation is challenging, consider building a relationship with a Finnish bank through salary deposits and savings accounts before applying for a mortgage. Some banks offer preferential rates to existing customers with strong banking relationships.

It's something we develop in our Finland property pack.

What are the property taxes and maintenance costs if you buy property in Finland?

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Finland versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Property ownership in Finland involves several ongoing costs that renters don't face, impacting your total housing expenses.

Property taxes in Finland are relatively modest, ranging from 0.41-1.00% annually of the taxable property value depending on the municipality and property type. For a €300,000 apartment, expect annual property taxes of €1,230-3,000, or approximately €100-250 monthly.

Housing company fees (vastike) are mandatory monthly charges for apartment buildings, covering building maintenance, utilities, insurance, and reserve funds. These fees typically range from €3-7 per square meter monthly, meaning a 60m² apartment incurs €180-420 monthly in housing company fees.

Additional ownership costs include home insurance (€200-500 annually), potential special assessments for major building renovations, and personal maintenance costs for appliances and fixtures within your unit. Budget approximately €2,000-4,000 annually for unexpected repairs and replacements.

Water, heating, and basic building services are often included in housing company fees for apartments, while individual houses require separate utility arrangements costing €100-200 monthly depending on property size and energy efficiency.

Do you prioritize flexibility or stability in your housing situation?

Your preference for flexibility versus stability significantly influences whether buying or renting better suits your lifestyle and goals in Finland.

Renting provides maximum flexibility for professionals whose careers might require relocation, international assignments, or frequent job changes. Finnish rental agreements typically require 1-2 months' notice to terminate, allowing relatively quick housing changes without financial penalties.

Property ownership offers stability and predictability in housing costs over time. Your monthly mortgage payment remains consistent (for fixed-rate loans), protecting against rental increases and providing security against landlord decisions to sell or renovate. This stability particularly benefits families with school-age children or professionals planning long-term career development in Finland.

Consider that Finland's rental market can be competitive in popular areas, with limited availability of quality apartments. Property owners have guaranteed housing security and aren't subject to lease non-renewals or forced relocations due to landlord circumstances.

Flexibility also extends to property modifications - renters cannot make significant changes to their living space, while owners can renovate, upgrade, and customize their homes to meet changing family needs or personal preferences over time.

What is the potential for property value appreciation in your target area?

Property appreciation potential varies significantly across Finland's regions, with location being the primary determinant of investment returns.

Helsinki's prime residential areas show moderate appreciation potential of 2-4% annually over the long term, supported by continued urbanization, limited land supply, and the city's role as Finland's economic center. Neighborhoods with excellent transport connections and new development projects typically outperform the broader market.

Growth cities like Tampere and Turku offer stronger appreciation potential of 3-5% annually due to expanding universities, technology sectors, and population growth among young professionals. These cities benefit from lower entry prices compared to Helsinki while maintaining economic diversification.

Smaller Finnish cities and rural areas face more limited appreciation potential, with property values often stagnating or declining slightly due to population migration toward urban centers. These areas may be suitable for lifestyle purchases but offer limited investment returns.

Finland's overall economic stability, EU membership, and strong governance provide fundamental support for property values. However, the country's aging population and moderate economic growth limit dramatic property appreciation compared to faster-growing European markets.

It's something we develop in our Finland property pack.

Are there additional costs or fees associated with renting or buying in your desired location?

Both renting and buying property in Finland involve additional costs beyond the basic monthly payment or purchase price.

For renters, expect the following additional expenses:

1. Security deposit of 1-2 months' rent, returned at lease end if no damages
2. Rental agency fees of 1-2 months' rent if using an agent to find accommodation
3. Utility setup fees and deposits for electricity, internet, and phone services (€100-300)
4. Renter's insurance for personal belongings (€10-25 monthly)
5. Moving costs and potential furniture rental if arriving with limited possessions

Property buyers face more substantial additional costs:

1. Property transfer tax of 2-4% of purchase price depending on property type
2. Legal and notary fees of €1,000-2,500 for transaction processing
3. Property inspection costs of €500-800 to assess condition before purchase
4. Mortgage arrangement fees of 0.5-1.0% of loan amount charged by banks
5. Registration fees of €500-1,000 for title transfer and property records
6. Real estate agent commission of 3-5% if using buyer's agent services
7. Home insurance setup and ongoing premiums

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Flatta - Rent Prices in Finland's Top Cities
2. WhereToSpot - Cost of Living in Finland 2025
3. Heka - Rent Level and Determination
4. Helsinki Times - Rents Fall in Helsinki Region
5. PR Newswire - Finland's Real Estate Market Recovers
6. The European - Finland's Property Market Rebounds
7. Nordea - Finland Housing Market Review Q1 2025
8. OP Bank - Home Loan Calculator
9. Trading Economics - Finland House Price Index
10. Numbeo - Cost of Living in Helsinki