Tips for first-time home buyers

Buying your first home is one of the most important decisions you will ever make

Housing loan payments can be considered comparable to a monthly rent – with the difference that by repaying your loan you are actually accruing wealth. Also as a first-time home buyer you can deduct 30% of the housing loan interest in 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 you afford?

The first thing you should do is assess your income and expenses. Try to be realistic and find out what you can afford: how much money can you spend on housing each month without having to cut corners elsewhere? What would your standard of living be after your housing expenses? Could you still travel, have hobbies and eat out occasionally? It is best to take your everyday expenses into account when thinking about how much you can spend on housing.

Use our budget calculator (in Finnish) to help you in your assessment.

2. Request a loan promise 

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

You can get a loan promise by filling in the housing loan application, in which we will agree with you on the loan terms and conditions: the loan amount, the loan period, the interest rate and the repayment method.

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 what your actual monthly living expenses would be in the new home. Besides your loan repayments, you should also take the monthly maintenance charge into account.
  • Future repairs such as a plumbing renovation in the housing company can cost tens of thousands of euros. Find out if there are renovations planned for the future and preferably estimate their costs above what is expected.
  • Consider whether you could pay off a housing company loan with a personal 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 interest rates or unexpected events with different hedging products. They will give you leeway in unexpected situations.

We will be happy to advise you right from the start: by planning together, we can get your dream home to fit within your budget. Contact us or visit a Nordea branch – we will help you every step of the way towards your first own home!

Housing loan products Interest rate hedging Housing loan products

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.