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!
With the right interest hedging products, you can protect your finances even when market interest rates change drastically.
FlexiPayment gives you leeway for your monthly loan repayment. Another alternative is to extend your instalment-free period. See which one suits you better.