Mortgage deeds placed as security for the bank to be replaced with electronic mortgage deeds

Do you own a property, such as a detached house or a summer cottage? If you have pledged this property as security for your bank loan, its printed mortgage deed which you handed over to your bank will be converted into an electronic format.

Since beginning of June, all new mortgage deeds have been given in an electronic format only. An electronic mortgage deed consists of a record in the public title and mortgage register and it supplants the printed mortgage deed.

In autumn 2017, banks will begin converting mortgage deed held by them as loan security into electronic deeds in a project run in cooperation with the National Land Survey of Finland. The main phase of this centralized project will take place in October and November, when most of the printed mortgage deeds held by as security by banks will be converted into electronic records. After this, mortgage deeds will be converted gradually throughout 2018.

Mortgage deeds in banks' safe custody, such as those stored in safe deposit boxes, will not be converted into electronic format in this project.

The conversion of deeds held by banks does not require customers to do anything and will not result in any costs for them.

Customers can still deliver printed mortgage deeds to their bank after conversion, and such deeds may be transferred from one bank to another. We will be able to use printed mortgage deeds as security for new loans until the end of 2019, but we recommend converting them into an electronic format. As of 2020, only electronic deeds will be accepted as security for a new loan. However, you should not destroy any printed mortgage deeds that you have in your possession. If printed mortgage deeds are pledged as security for a new loan, the lending bank will convert them into electronic format.

The recipient record on an electronic mortgage deed indicates who has the right to assign the deed to another party. The recipient may by one or several owners, or a bank. If a bank has been recorded as the recipient ti it will have the right to assign the mortgage deed to another party.

You can check from the Property Transaction Service of National Land Survey of Finland www.kiinteistoasiat.fiOpens new window whether the mortgage deeds for properties you own have been converted into an electronic format in October or November 2017. Banks will convert most mortgage deeds during October. Mortgage deeds held by Nordea as security for a loan will be converted at the end of October.

Property pledged as loan security

  • When a property is pledged as security for a loan (i.e. mortgaged), a mortgage deed is issued as proof of this.
  • A mortgage can be placed on a property, such as premises or plot of land, a certain percentage of it, or a certain area within the property that belongs to someone other than the property owner. A leasehold may also be mortgaged under certain conditions.
  • An electronic record is made of a confirmed mortgage in the public title and mortgage register.
  • A mortgage can be applied for by the property owner or leaseholder
  • and it is valid until further notice.