Tax deductions

The interest on a loan taken for the purchase or renovation of an owner-occupied home is tax-deductible. Tax-deductibility applies if the home is the regular residence of the owner or his or her family.

By contrast, you cannot deduct the tax on the interest on a loan for a holiday home or the interest on a company loan paid in connection with the maintenance charge. Customers are often advised to take a bank loan to pay off the housing company loan to avail of the tax deduction right.

Deducting interest expences

  • In 2015, the deduction right is 65% of the interest. 
  • Interest expenses are deducted in the first instance from capital income (e.g. rental and dividend income).
  • If you have no capital income, or its amount does not allow a deduction, you get a special credit for deficit in capital income in the taxation of earned income (such as salary or pension).

Credit for deficit

  • The credit for deficit is 30% of the amount of the interest that cannot be deducted from your capital income.
  • If the loan is taken for the purchase of a first home, the credit for deficit is 32%. The tax deduction right applies for 10 years and also if you own at least half of your first home.
  • The interest on a loan taken for the purchase of a partially owned home can also be deducted. Any interest included in a rent, however, cannot.
  • The interest on a loan used to pay for the right-of-occupancy payment is tax-deductible.

Asset transfer tax 

  • If you are a first-time home buyer and aged 18–39 years, you are exempt from asset transfer tax if you own at least half of your home and reside there permanently.
  • If you have previously owned half or more than half of a residence, you are not considered a first-time home buyer and you must pay the asset transfer tax.
Housing loan products Interest rate hedging Housing loan products

Housing loan

Apply for a housing loan that suits your needs from Nordea

With Nordea's housing loan you can realise your dreams – buy a home, build a house or purchase an investment property.

Interest rate collar

Stability to reference rate changes

The interest rate collar is a new kind of interest rate hedging product with which you ensure that the reference rate on your loan stays within the agreed limits and will not exceed the agreed maximum level during the validity of the hedge.

OwnGuarantee

An OwnGuarantee helps you to acquire a home with a small start capital

With an OwnGuarantee, you need less savings for financing a new home, and you may not need any other security for your housing loan.

Interest rate cap

Don't let the interest on your housing loan get out of hand

With an interest rate cap, you can make sure that the reference rate on your loan will never exceed a certain level. An interest rate cap can be taken for an old or a new loan.

ASP loan (ASP account)

Save 10% of the price of a new home in an ASP account, and we will lend you the rest

You can open an ASP account if you are aged between 18 and 39.

HomeFlex

Large purchases with a small monthly payment

Is your home in need of refurbishing or is your housing company planning to renovate its plumbing? HomeFlex will free up your home equity so that you can realise your.

FlexiPayment

FlexiPayment can be added to a new loan as well as to existing ones

When you have FlexiPayment linked to your housing loan, you can decrease or increase the monthly instalment on your loan – or even skip the instalment for a month without notifying us.

Pay your own share of a housing company loan

Does the charge for financial costs you are paying your housing company seem too high?

If you take your share of the housing company loan in your own name, you get two advantages: you can tailor the monthly payment to suit your finances and you get a tax benefit.

Interest rate hedging

Interest rate collar

Stability to reference rate changes without a separate fee

The interest rate collar is a new kind of interest rate hedging product with which you ensure that the reference rate on your loan stays within the agreed limits and will not exceed the agreed maximum level during the validity of the hedge. You can link the interest rate collar either to a new loan or your existing loan.

Interest rate cap

Don't let the interest on your housing loan get out of hand

With an interest rate cap, you can make sure that the reference rate on your loan will never exceed the agreed maximum level. An interest rate cap can be taken for an old or a new loan.

Fixed interest rate

When your loan has a fixed interest rate,

you will know the exact amount of your monthly instalments during the fixed interest period.

Neuvoja asumisesta

Man sitting thinking by house 

Interest rate hedging makes life secure

With the right interest hedging products, you can protect your finances even when market interest rates change drastically.

Woman looking out of window 

Two alternatives

FlexiPayment gives you leeway for your monthly loan repayment. Another alternative is to extend your instalment-free period. See which one suits you better.