Home buyers may be eligible for a home loan backed by a state guarantee. If you need a state guarantee for your home loan, we will apply for it on your behalf. In the case of an ASP loan, a state guarantee means that when you have saved the required 10% of the home price, you don't need any other collateral than your home: for instance, you don’t have to ask your parents to assist you with the collateral. The state guarantee is free of charge for ASP borrowers. Other borrowers must pay a guarantee fee, which is 2.5% of the guaranteed amount.
To be eligible for a state guarantee, you will also need to buy at least 50% of the home covered by the loan and the home must be intended for your or your family’s own use as a permanent residence. Another eligibility requirement is that the home is located in Finland.
In ordinary home loans, a state guarantee can’t cover more than 85% of the purchase price, but for first home buyers a state guarantee is available for up to 90% of an ASP loan. If you need an ordinary home loan in addition to the ASP loan, a state guarantee can be included in it for a fee. The longest possible loan period for a loan with a state guarantee is 25 years.
State guarantee for ASP loans – Buy a home affordably with an ASP loan
If you are buying your first home and are 15–39 years old, the ASP Account is the most affordable solution for home saving. The free-of-charge state guarantee is one of the many advantages of an ASP home-saving loan. For instance, you don’t need to make a deposit in the ASP Account every month, and we will pay you an additional interest of 4% on top of the deposit interest.