Buy-to-let home loan helps you invest in property

Frequently asked questions about buy-to-let home loans

When should I apply for a buy-to-let home loan?

A buy-to-let home loan is granted for the purpose of purchasing an investment flat. You can get a loan commitment from us before you start your property search. The loan commitment is free of charge, does not oblige you to take out a loan from us and allows you to act quickly when the perfect property comes along. Please note that we need to approve the property you want to purchase before you can put in a binding offer.

I’m not a Nordea customer. Can I apply for a buy-to-let home loan with you?

Yes, absolutely. You can use the online banking codes of any Finnish bank to fill in the application. 

How much can I borrow?

Our home loan calculator helps you work out the right loan amount for your budget. You can calculate your monthly payments and see how they would affect your finances.

What is the difference between a buy-to-let home loan application and a regular home loan application?

You can apply for a buy-to-let home loan by filling in our home loan application. Just select buying an investment flat as the purpose of your loan at the beginning of the form.

What does the return on an investment flat consist of?

When you invest in a property, the total return on your investment consists of the rental income and any increase in the value of the property. Various things, including the flat’s location and the amenities in the area, can affect the value and performance of your investment. Please keep in mind that the value of your investment flat may also decrease. Your rental income depends on the rent, fixed costs including loan repayments and the charge for common expenses, as well as any costs related to renovation works, housing company loans or buying new household appliances, for instance.

Where do I find more information about investing in property?

There is a lot of information about property investment online. Here are some sources you may find useful: On the Finnish Landlord Association’s websiteOpens new window, you can find tips for buying an investment flat and choosing a tenant. If you have questions about the taxation of an investment property, visit the Tax Administration’s websiteOpens new window. If you are not looking to purchase an investment flat right now but you want to get started with property investment, you can also invest in property through funds. Read more about the real estate funds we offer.

How do I protect my finances while investing in property?

The monthly home loan payment is often the largest single expense in a household, which is why it makes sense to hedge against the risks it involves – also when you have an investment flat. When you add an interest rate hedge to your loan, you will protect your loan from changes in its reference rate and will no longer need to worry about interest rates rising. Besides interest rate hedging, it’s a good idea to protect yourself against the unexpected by taking out insurance. This will give you some financial peace of mind if you fall ill or find yourself unable to work.  We also recommend diversifying your assets by saving in funds while paying off your loan. This allows you to build a financial buffer, which you can use to cover any unexpected expenses.

• Read more about our interest rate hedging solutions
• Read more about Nordea MyLife personal insurance
• See why it’s smart to save while paying off your loan 

What are the risks that come with a buy-to-let investment?

There are always risks involved in any investment, and property investment is no exception. You need to find tenants who are able to pay their rent and have a clean credit record. You also need to be prepared for periods in which the flat might sit empty. The tenancy agreement should be drafted carefully. There are templates you can use for this. Besides large renovation projects (such as plumbing repair), general wear and tear on the flat also exposes you to risks, and you may need to buy new household appliances from time to time. In addition to the planned renovation projects, you may have to deal with water leaks and other damage in the flat. If you have borrowed money to purchase the investment flat, you also need to be prepared for a rise in interest rates.