Tips for first-time home buyers

Own home is one of the most important purchases in your life

Have you consider that making housing loan payments can be compared to the monthly rent - with the difference that by amortising the loan you accrue your wealth. Also as a first-time home buyer you can deduct 32% of the housing loan interests in the taxation for 10 years.

Read this list of advice before you start looking for a home of your own.

1. What kind of home can I afford?

First of all, go through your income and expenses. Consider realistically what is possible: how much can you spend on housing monthly and still lead a full life? What would your standard of living be after the housing expenses? Could you travel, continue your favourite sport, and eat out every once in a while? Consider your everyday life and fit your living expenses to it.

2. Get a loan promise

By getting a loan promise from Nordea early on you get a head start to the other home hunters after the same flat or house you are interested in. The loan promise does not commit you to anything, but you can make an offer on home at once when you find the right one.

To get a loan promise, fill in a housing loan application in which you and Nordea agree on the loan terms: loan amount, loan period, interest and method of repayment.

3. When you find the right one

When you have found a home that you like, consider the following besides the purchase price and the home itself:

• Calculate your true living expenses in your new home. Remember to take into account the maintenance charge in addition to the loan payments.
• Future repairs such as a pipe and drain renovation in the housing company can cost thousands of euros. Find out if there are renovations planned for the future and the estimate their costs rather too high than too small.

• Consider if you would like to pay off a possible housing company loan with a housing loan. If you do this, you get the full benefit of the interest deduction as a first-time home buyer and can agree on changes concerning the loan based on your situation.

• Prepare for different changes such as rising interests rate or unexpected events with different hedging products. They will give leeway in surprising changes in life.

We are happy to advise you right from the start. By planning together we can fit your dream home into your budget - contact us or visit a Nordea branch - we will help you every step of the way towards your first own home!