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Everything you need to know before buying real estate is included in our Finland Property Pack
Getting a mortgage in Finland as a foreigner is possible but involves stricter requirements than for Finnish residents. Most banks require a valid residence permit, a Finnish personal identity code, and a local bank account to approve foreign mortgage applications.
Foreign buyers typically need down payments of 30-40% compared to 15-20% for locals, and face higher interest rates ranging from 5-8% versus 4-5.5% for Finnish residents.
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Finnish banks accept foreign mortgage applications but with stricter criteria including higher down payments and proof of strong ties to the country.
Most requirements include a residence permit, Finnish personal identity code, local bank account, and extensive income documentation.
| Requirement | Finnish Residents | Foreign Applicants |
|---|---|---|
| Down Payment | 15-20% | 30-40% (or higher) |
| Interest Rates | 4-5.5% | 5-8% |
| Loan Terms | 20-30 years | 5-15 years |
| Personal Identity Code | Required | Required |
| Finnish Bank Account | Required | Required |
| Residence Permit | Not applicable | Usually required |
| Foreign Income Acceptance | Standard process | Heavily scrutinized |
Do I need to be a resident of Finland to apply for a mortgage?
You don't need permanent residency to apply for a Finnish mortgage, but you typically need some form of legal residence status.
Most Finnish banks require applicants to have a valid residence permit rather than full permanent residency. A temporary residence permit for work, study, or family reunification is usually sufficient for mortgage applications.
Banks evaluate your ties to Finland when assessing mortgage applications. Having a residence permit demonstrates your legal right to stay in the country, which reduces the bank's risk of default if you were to leave suddenly.
Some banks may consider applications from complete non-residents, but these cases involve much higher down payment requirements of 40% or more and extensive documentation of your financial stability.
As of September 2025, most major Finnish banks including Nordea, OP Bank, and Danske Bank maintain this residence permit requirement as standard policy.
Can I get a mortgage in Finland if I don't have permanent residency?
Yes, you can get a Finnish mortgage without permanent residency, but you need a valid temporary residence permit.
Finnish banks accept mortgage applications from holders of temporary residence permits, including work permits, study permits, and family reunification permits. The key requirement is having legal documentation showing your right to remain in Finland for an extended period.
Banks typically require that your residence permit has at least 12-24 months remaining before expiration when you apply for the mortgage. This gives them confidence that you'll remain in Finland long enough to establish a payment history.
Your mortgage terms may be shorter initially if your residence permit is temporary, but many banks allow you to extend the loan term once you obtain permanent residency or renew your temporary permit.
It's something we develop in our Finland property pack.
What kind of visa or permit do I need to be eligible for a mortgage?
Work permits, study permits, and family reunification permits are the most commonly accepted visa types for Finnish mortgage applications.
Work permits (Type A residence permits) are highly favored by banks because they demonstrate stable employment and income potential in Finland. EU Blue Cards for highly skilled workers are particularly well-regarded by lenders.
Student residence permits can qualify for mortgages, but banks typically require proof of additional income beyond student allowances, such as part-time work or family financial support.
Family reunification permits work well for mortgage applications, especially when the sponsoring family member is a Finnish citizen or permanent resident with good credit history.
Tourist visas and short-term visitor permits are not sufficient for mortgage applications, as they don't demonstrate long-term commitment to residing in Finland.
Do I need to have a Finnish personal identity code to apply?
Yes, having a Finnish personal identity code (henkilötunnus) is mandatory for mortgage applications at all major Finnish banks.
Banks require the personal identity code to verify your identity, conduct credit checks, and comply with anti-money laundering regulations. Without this code, the bank cannot properly assess your creditworthiness or process your application.
You can obtain a Finnish personal identity code after registering with the Digital and Population Data Services Agency (DVV) once you have a valid residence permit and proof of address in Finland.
The process typically takes 2-4 weeks after submitting your application with the required documents including your residence permit, proof of accommodation, and identification documents.
Some banks may begin preliminary discussions before you receive your identity code, but no formal mortgage application can be processed until you have this number.
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Is it possible to get a mortgage without a Finnish bank account?
No, having a Finnish bank account is a mandatory requirement for getting a mortgage from Finnish banks.
Finnish banks require a local bank account because all mortgage payments, including monthly installments and associated fees, must be processed through a Finnish banking system. This ensures reliable payment processing and regulatory compliance.
The bank account also serves as collateral management, allowing the lender to monitor your financial activities and ensure you maintain sufficient funds for mortgage payments.
You need to establish your Finnish bank account before applying for a mortgage, which requires your personal identity code and proof of address in Finland.
Some banks may require you to maintain a minimum balance or demonstrate regular income deposits into your Finnish account for several months before approving your mortgage application.
How much down payment do I need as a foreigner?
Foreign mortgage applicants typically need down payments of 30-40% of the property purchase price, significantly higher than the 15-20% required for Finnish residents.
For new construction properties, foreign buyers may face down payment requirements as high as 40-50% due to the higher risk profile associated with unfinished developments.
The exact down payment percentage depends on your residency status, income stability, and the bank's risk assessment. EU citizens with strong ties to Finland may secure lower down payment requirements closer to 25-30%.
Non-EU citizens typically face the highest down payment requirements, especially if applying without permanent residency or with income primarily from outside Finland.
Some premium properties in Helsinki city center may require down payments of 50% or more for foreign buyers due to the competitive market conditions.
Do banks in Finland accept income from abroad when applying for a mortgage?
Some Finnish banks accept foreign income for mortgage applications, but this significantly increases scrutiny and documentation requirements.
Banks that consider foreign income typically require extensive documentation including employment contracts, tax returns, bank statements, and verification letters from employers or accountants in your home country.
Remote work arrangements with Finnish companies are more readily accepted than purely foreign employment, as they demonstrate stronger ties to the Finnish economy.
Many banks prefer applicants to have at least partial income from Finnish sources, such as rental income from Finnish properties or employment with Finnish companies, even if working remotely.
Foreign income acceptance varies significantly between banks, with some refusing applications entirely if income comes primarily from abroad, while others may accept it with higher down payment requirements and interest rates.
What documents do I need to show to prove my income and creditworthiness?
Finnish banks require comprehensive documentation to verify your income and assess creditworthiness for mortgage applications.
Essential documents include: 1. **Employment Documentation**: Current employment contract, salary certificates, and employer verification letters 2. **Income Proof**: Pay slips for the last 3-6 months, tax returns for the previous 2 years, and bank statements showing salary deposits 3. **Tax Documentation**: Tax assessment notices from Finnish tax authorities or equivalent documents from your home country 4. **Financial Statements**: Bank statements from all accounts for the past 6 months, investment portfolio statements, and asset declarations 5. **Credit History**: Credit reports from Finnish credit agencies or equivalent reports from your home country with official translationsIf you have foreign income, additional documentation includes employer verification from overseas, proof of currency conversion rates, and evidence of income stability over extended periods.
Self-employed applicants need business financial statements, profit and loss statements, and accountant-verified income declarations for the past 2-3 years.
It's something we develop in our Finland property pack.
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Can I get a mortgage if my credit history is only from outside Finland?
Yes, you can get a Finnish mortgage with only foreign credit history, but banks will require official credit reports and additional verification.
Finnish banks accept credit reports from major international credit agencies, but these must be officially translated into Finnish or English and verified by the issuing institution.
Banks typically require credit reports covering the past 3-5 years from all countries where you've had financial activities, including credit cards, loans, and banking relationships.
Having a strong international credit history with no defaults or late payments significantly improves your mortgage approval chances, though you may still face higher interest rates than applicants with Finnish credit history.
Building Finnish credit history before applying for a mortgage by using local credit cards or small loans can improve your terms and increase approval likelihood.
Are there restrictions on buying property in Finland as a non-citizen?
EU and EEA citizens can buy Finnish property freely without restrictions, while non-EU/EEA citizens need government approval for real estate purchases.
Non-EU/EEA buyers must obtain authorization from the Finnish Ministry of Defense before purchasing property, though this approval is routinely granted for residential properties in urban areas.
The authorization process typically takes 4-8 weeks and requires submitting an application with proof of identity, purchase agreement details, and intended use of the property.
Certain strategic locations near military installations or border areas may face additional scrutiny or restrictions regardless of the buyer's nationality.
Foreign companies purchasing Finnish real estate face more complex approval processes and may need to establish a Finnish subsidiary or representative office.
Do Finnish banks offer mortgages to foreigners who plan to rent out the property?
Finnish banks do provide buy-to-let mortgages to foreign investors, but with stricter terms and higher down payment requirements than owner-occupied properties.
Investment property mortgages for foreigners typically require down payments of 40-50% compared to 30-40% for owner-occupied homes, reflecting the higher risk profile of rental properties.
Banks require detailed rental income projections, market analysis of the area, and proof of property management experience or professional management arrangements.
Some banks limit the loan-to-value ratio for investment properties to 60-70% maximum, regardless of the applicant's financial strength or down payment capability.
Interest rates for buy-to-let mortgages are typically 0.5-1% higher than owner-occupied property rates, and loan terms may be shorter at 10-20 years instead of 25-30 years.
What are the typical interest rates and terms offered to foreigners compared to locals?
Foreign mortgage applicants typically face interest rates of 5-8% compared to 4-5.5% for Finnish residents, with shorter loan terms of 5-15 years versus 20-30 years for locals.
| Terms | Finnish Residents | Foreign Applicants |
|---|---|---|
| Interest Rates | 4.0-5.5% | 5.0-8.0% |
| Loan Duration | 20-30 years | 5-15 years |
| Maximum LTV | 80-85% | 60-70% |
| Processing Time | 2-4 weeks | 4-8 weeks |
| Application Fees | €200-500 | €500-1,000 |
| Early Repayment | Usually allowed | Often restricted |
| Rate Type | Fixed or variable | Often variable only |
The interest rate differential reflects the perceived higher risk of lending to non-residents who might leave the country or face income instability.
Foreign applicants with strong Finnish ties, such as long-term employment contracts or permanent residency, may negotiate rates closer to those offered to Finnish citizens.
It's something we develop in our Finland property pack.
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.
Getting a mortgage in Finland as a foreigner requires careful preparation and understanding of the stricter requirements compared to Finnish residents.
Success depends on having proper documentation, sufficient down payment funds, and demonstrating strong ties to Finland through residence permits and local banking relationships.
Sources
- InvestRopa - Finland Real Estate for Foreigners
- OP Bank - Buying a Home in Finland
- InfoFinland - Buying a Home
- Theseus - Finnish Real Estate Market Study
- Hatamatata - Mortgage Guide for Foreigners
- Reddit - Mortgage for Non-Residents
- Finnish Ministry of Defense - Real Estate Authorization
- Multilaw - Real Estate Guide Finland
- Homes Overseas - Finnish Property Market
- OP Bank - Home Buying Guide for Immigrants