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Everything you need to know before buying real estate is included in our Finland Property Pack
Understanding deposit requirements is crucial when buying property in Finland, whether you're a local resident or foreign investor.
Finnish banks require different down payment percentages based on your residency status, with locals typically needing 5-15% while foreign buyers often face 25-50% requirements. Additional transaction costs of 7-12% of the purchase price must also be factored into your budget.
If you want to go deeper, you can check our pack of documents related to the real estate market in Finland, based on reliable facts and data, not opinions or rumors.
Finnish residents can secure mortgages with as little as 5% down payment (first-time buyers under 35), while foreign buyers typically need 25-50% deposits.
Total upfront costs including taxes, fees, and deposit range from 12-62% of property purchase price depending on buyer status.
| Buyer Type | Minimum Deposit | Additional Costs | Total Upfront |
|---|---|---|---|
| Finnish Resident (First-time, Under 35) | 5% of property price | 7-12% of property price | 12-17% of property price |
| Finnish Resident (Standard) | 10-15% of property price | 7-12% of property price | 17-27% of property price |
| EU Citizen with Finnish Residency | 10-20% of property price | 7-12% of property price | 17-32% of property price |
| Foreign Buyer (Non-resident) | 25-50% of property price | 7-12% of property price | 32-62% of property price |
| Cash Purchase (Any Buyer) | 100% of property price | 7-12% of property price | 107-112% of property price |
What's the purchase price range for Finnish properties?
Finnish property prices vary significantly based on location and property type as of September 2025.
Apartments typically cost €2,000–4,000 per square meter across Finland. In Helsinki, older apartments exceed €3,500 per square meter while new builds command €4,000–6,500 per square meter.
Houses generally range from €1,500–3,500 per square meter, with higher prices in urban areas like the Helsinki metropolitan region. Tampere and Turku properties fall in the middle range, while smaller cities offer more affordable options.
Rural properties start from €1,500 per square meter and can go up to €2,800 per square meter, sometimes even less in remote areas.
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Are you a Finnish resident or foreign buyer?
Your residency status fundamentally determines your mortgage options and deposit requirements in Finland.
Finnish citizens and permanent residents access the most favorable mortgage terms, including minimum 5% down payments for first-time buyers under 35. They benefit from standard loan terms of 20-30 years and interest rates between 2.8-4.3% as of September 2025.
EU citizens with Finnish residency permits generally receive similar treatment to Finnish citizens, though some banks may require slightly higher deposits of 10-20% depending on employment stability and credit history.
Foreign buyers without Finnish residency face significantly stricter requirements. Banks typically demand 25-50% down payments, shorter loan terms of 5-15 years, and higher interest rates of 4-8%. Most require proof of Finnish income, local bank accounts, and valid residence permits.
Non-resident buyers often find it easier to arrange financing through international banks or consider cash purchases due to domestic lending restrictions.
Do you plan to live in the property or use it as investment?
Finnish banks differentiate between owner-occupied properties and investment purchases when setting deposit requirements.
Primary residence purchases typically qualify for lower down payments, especially for first-time buyers. Finnish residents buying their main home can secure mortgages with 5-15% deposits under favorable terms.
Investment properties usually require higher deposits of 15-25% even for Finnish residents. Banks view rental properties as riskier investments and adjust their lending criteria accordingly.
Buy-to-let mortgages often come with stricter income requirements, where rental income potential is carefully evaluated. Banks typically require proof that rental yields can cover mortgage payments with comfortable margins.
Foreign investors face the most stringent requirements, often needing 30-50% deposits for investment properties regardless of their intended use.
What type of property are you considering?
Property type influences both purchase price and financing requirements in the Finnish market.
| Property Type | Price Range (per m²) | Typical Down Payment | Popular Locations |
|---|---|---|---|
| New Apartments | €4,000-6,500 | 10-15% (residents) | Helsinki, Espoo, Vantaa |
| Older Apartments | €2,000-3,500 | 5-10% (residents) | Tampere, Turku, Oulu |
| Detached Houses | €2,500-4,500 | 10-20% (residents) | Suburban Helsinki, Tampere |
| Townhouses | €2,000-3,800 | 10-15% (residents) | Mid-size cities |
| Rural Properties | €1,500-2,800 | 15-25% (higher risk) | Countryside, smaller towns |
| Land Plots | €50-500 (per m²) | 20-30% (development risk) | Building-ready plots |
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How much can you cover from your own savings?
Your available savings determine which financing options are realistic for your Finnish property purchase.
First-time Finnish buyers under 35 need only 5% savings for the deposit, plus 7-12% additional for transaction costs. This means €60,000-85,000 total upfront costs for a €500,000 property.
Standard Finnish residents should prepare 10-15% for deposits plus transaction costs, totaling €85,000-135,000 upfront for the same property value.
Foreign buyers must save significantly more, with 25-50% deposits required. For a €500,000 property, this means €160,000-310,000 upfront costs including all fees and taxes.
Cash buyers avoid mortgage complications but still face 7-12% transaction costs, meaning €535,000-560,000 total for a €500,000 property purchase.
Consider keeping additional reserves of 3-6 months' expenses beyond your deposit for unexpected costs or market changes.
What's the minimum down payment percentage required by Finnish banks?
Finnish banks set minimum deposit requirements based on buyer profile and risk assessment as of September 2025.
First-time buyers under 35 with Finnish residency can secure mortgages with just 5% down payments through special programs. This requires participation in ASP savings schemes and meeting strict income criteria.
Standard Finnish residents typically need 10-15% deposits, though this can increase to 20-30% depending on credit profile and collateral strength. Banks assess each application individually.
Foreign buyers face 25-50% minimum deposits, with most banks preferring 40-50% to minimize lending risk. Some international banks operating in Finland may offer slightly more favorable terms.
Investment properties require higher deposits regardless of buyer nationality, typically 15-25% for residents and 30-50% for foreigners.
It's something we develop in our Finland property pack.
Do existing loans or debts affect your borrowing capacity?
Finnish banks thoroughly evaluate all existing financial obligations when determining mortgage eligibility and required deposits.
Current debt payments reduce your maximum borrowing capacity through debt-to-income ratio calculations. Banks typically require total debt payments to stay below 40-50% of net monthly income.
Student loans, car loans, and credit card debts all impact your mortgage application. Higher existing debts may require larger deposits to compensate for increased lending risk.
Outstanding mortgages from other countries must be declared and factored into affordability assessments. This particularly affects foreign buyers with existing property loans.
Good payment history on existing debts can actually strengthen your application, while late payments or defaults significantly reduce borrowing capacity and may require higher deposits.
Banks perform stress tests assuming interest rate increases of 2-3 percentage points above current rates when evaluating your ability to handle future payments.
What matters most regarding credit history and income situation?
Finnish banks prioritize stable income and clean credit history when setting deposit requirements and mortgage terms.
1. **Employment stability** - Permanent contracts significantly improve mortgage terms compared to temporary or freelance work 2. **Income level** - Banks require net income at least twice your planned monthly mortgage payment 3. **Credit score** - Clean payment history from Finnish credit bureaus (Suomen Asiakastieto) essential for best terms 4. **Income documentation** - Tax returns, employment contracts, and bank statements covering 3-6 months required 5. **Local banking relationship** - Existing accounts and financial products with Finnish banks improve application success 6. **Residency duration** - Longer Finnish residency demonstrates stability and reduces perceived risk 7. **Professional qualifications** - Recognized education and professional licenses in Finland strengthen applicationsWhat additional costs beyond the deposit do you need to prepare for?
Finnish property purchases involve substantial additional costs beyond your down payment that total 7-12% of the purchase price.
Transfer taxes represent the largest additional cost: 2% for apartments and 4% for houses and land. On a €400,000 apartment, this means €8,000 in transfer tax alone.
Legal and administrative fees include notary costs, property registration, mortgage arrangement fees, and property inspections. These typically total €2,000-5,000 depending on property value and complexity.
Professional services such as real estate agents (if used), lawyers, translators, and surveyors can add another €1,000-3,000 to your total costs.
Mandatory insurances including home insurance and mortgage protection insurance cost several hundred euros annually but require upfront payment at closing.
Moving costs, utility connections, and immediate property improvements should also be budgeted beyond the official transaction costs.
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.
Are you planning to get a mortgage or pay partly in cash?
Your payment method significantly affects the total cost and complexity of buying Finnish property.
Mortgage financing requires extensive documentation but allows leveraging your investment with deposits as low as 5% for qualified buyers. Interest rates currently range from 2.8-4.3% for residents and 4-8% for foreigners.
Partial cash payments can strengthen mortgage applications and potentially reduce required deposits. Banks view higher equity contributions as lower risk and may offer better terms.
Full cash purchases eliminate mortgage complications, qualification requirements, and ongoing interest payments. However, you still face 7-12% transaction costs and tie up significant capital.
Mixed financing combining personal savings, mortgages, and potentially family assistance offers flexibility but requires careful coordination of all funding sources.
Foreign buyers often find cash purchases simpler than navigating Finnish mortgage requirements, especially for investment properties.
Do Finnish banks offer special terms for first-time buyers or foreigners?
Finnish banks provide significant advantages for first-time buyers but limited special programs for foreign buyers as of September 2025.
**First-time buyer benefits include:** 1. **5% minimum deposits** for buyers under 35 through ASP (savings) programs 2. **State interest subsidies** on ASP account savings used for property purchases 3. **Extended loan terms** up to 30 years for qualified applicants 4. **Reduced arrangement fees** at some major banks for first mortgages 5. **Special advisory services** to guide first-time buyers through the process **Foreign buyer considerations:** - Most banks require Finnish residency permits and local employment for standard terms - International banks operating in Finland may offer more flexible terms for high-net-worth clients - EU citizens generally receive better treatment than non-EU nationals - Some banks specialize in expat financing but typically require higher deposits - Private banking divisions may offer customized solutions for significant property investmentsHow much monthly repayment can you comfortably commit to after the deposit?
Finnish banks use strict affordability calculations to determine sustainable monthly mortgage payments relative to your income and existing obligations.
The standard rule requires monthly housing costs (mortgage, maintenance fees, utilities) to stay below 35-40% of net monthly income for sustainable long-term payments.
Banks perform stress tests assuming 2-3 percentage point interest rate increases above current levels. Your payment capacity must withstand these higher rates throughout the loan term.
Typical monthly payments on common mortgage scenarios include: €1,200-1,400 monthly on a €300,000 mortgage at 3.5% over 25 years, or €1,800-2,000 monthly on a €450,000 mortgage under similar terms.
Consider additional monthly costs like property maintenance fees (€200-500 monthly for apartments), insurance, utilities, and property taxes when calculating your comfortable payment level.
It's something we develop in our Finland property pack.
Leave buffer room for unexpected expenses, interest rate increases, and potential income changes when determining your maximum sustainable payment commitment.
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.
Understanding deposit requirements is just the first step in successful Finnish property investment.
Consider broader market conditions, legal requirements, and long-term investment potential when making your final decision.
Sources
- Average House Price in Finland
- Homes Overseas - Finland Property Guide
- Finland Real Estate for Foreigners
- Personal Finance - Home Loans in Finland
- Reddit - Home Loan Without Much Savings
- Veles Club - Finland Property Investment
- Hangmoon - Buying First Home in Finland
- eSales International - Finland Property for Foreigners
- OP Bank - Homebuying Guide for Immigrants
- Global Property Guide - Finland Price History