What is the difference between a traditional closing and a digital closing?

You can close a home deal fully digitally without any need to visit a branch when the deal involves a real estate agent. A digital closing is a safe and easy alternative to a traditional closing arranged in branch. 

The real estate agent will enter the upcoming deal in the digital closing service, triggering an alert for the bank. The agent will agree with the seller and the buyer when they sign the deed of sale in the digital closing service.

If no real estate agent is involved, the deal will always need to be closed at a meeting arranged at a bank branch. This will usually take place at the buyer’s bank. Even if the closing requires a physical visit to a bank, you can still do all banking related to the home loan digitally through an online meeting.

Ajasta ja paikasta riippumatta

Fully digital closing

  1. When you buy a home, you can do all loan-related banking digitally.
  2. Both the buyer and the seller check the deed of sale in the digital closing service.
  3. Once everything is ready and in order, sign the deed of sale digitally with your Nordea access codes.

Preparing for a home deal

Contact us through the “I have found my new home” form when you’re buying a home and the seller has accepted your offer. This applies to both digital and traditional closings. 

We will book an online meeting with you to review the details of the loan and other relevant issues and services. Among other things, we will check together that the documents related to your home loan, such as loan agreements and collateral, are in order.

Contact us through the “I have found my new home” form.

Signing the loan documents

We will send the documents related to your home loan for you to read and sign to Nordea Mobile and Netbank. In either of these services, you will be able to read the documents and sign them using your Nordea access codes. 

Any documents that require a digital signature must be signed at least 24 hours before the deal is closed. You will also need to make sure that any other parties to the loan, including the issuers of additional collateral, have signed the documents in time before the closing. 

Read the instructions for signing the documents and agreements sent by Nordea digitallyOpens new window.

If you have arranged with us to sign your home loan documents in person when the home deal is closed, you will have time to do this before the other parties arrive.

Differences between a traditional and digital closing

The process is slightly different depending on whether you want to finalise the home deal digitally or at your bank.

Digital closing
Traditional closing

Digital closing

Tell the real estate agent that you as the buyer or the seller want to close the deal digitally. The real estate agent will collaborate with the buyer’s and seller’s banks and process everything apart from the signatures. 

The actual deal is closed when both the buyer and the seller approve the deed of sale and other documents with their online banking codes or other means of strong identification. 

Drafting and checking the deed of sale 

The real estate agent will draft the deed of sale. Check the deed of sale carefully in the digital service as soon as possible. After you have checked the deed, the real estate agent will ensure that the buyer’s and the seller’s banks will check the final deed of sale.

Signing the deed of sale digitally 

The deed of sale will be ready for signing when both the buyer and the seller have finalised their home loan business with their banks and the banks have confirmed this to the real estate agent. 

We recommend that you sign the deed of sale digitally in the digital closing service as soon as possible (not in Nordea Netbank or Mobile). 

We will finalise the deal

Once the deed of sale has been signed, we will draw down the loan and pay the following items from your account:

  • the purchase price
  • the real estate agent’s commission (if any) 
  • other costs related to the loan and collateral 
  • the asset transfer tax. To get your personal reference number for the asset transfer tax, log in to the Tax Administration’s MyTax serviceOpens new window.

The real estate agent will deliver the transfer tax return to the Tax Administration. 

If you buy shares in a housing company but don’t use a real estate agent or if you buy a real estate unit, you will need to fill in the transfer tax return in the MyTax service yourself. Read more about the asset transfer tax.

Traditional closing in branch

A traditional closing usually takes place at the buyer’s bank with the buyer, the seller, the real estate agent and a bank employee present.  If the deal concerns a real estate unit, a notary will also be present.

Both parties to the deal must have IDs with them. See the identity documents accepted by Nordea.

You can sign your home loan agreements digitally before the closing. However, if you have arranged with us to sign the agreements in branch when the home deal is closed, you will have time to do this before the other parties arrive.

Drafting and checking the deed of sale

The seller is responsible for drafting the deed of sale. If the home deal involves a real estate agent, the agent will draft the deed of sale.

At the closing meeting, you will go through the deed of sale and agree on the practicalities, such as the handover of keys and the possession date.

Signing the deed of sale and paying the purchase price

After both the buyer and the seller have signed the deed of sale, we will draw down the home loan and pay the following items from your account: 

  • the purchase price
  • the real estate agent’s commission (if any) 
  • other costs related to the loan and collateral
  • the asset transfer tax. Get your personal reference number for the asset transfer tax in advance from the Tax Administration’s MyTax serviceOpens new window.

The real estate agent will deliver the transfer tax return to the Tax Administration. If you buy shares in a housing company but don’t use a real estate agent or if you buy a real estate unit, you will need to fill in the transfer tax return in the MyTax service yourself. Read more about the asset transfer tax.

If you buy shares in a housing company, the seller or the real estate agent will usually note the transfer of ownership in the paper share certificate. The share certificate will also be converted into a digital format in this connection.

Remember these after the closing

If the deal concerning shares in a housing company has been handled by a real estate agent, they will inform the property manager of the change in ownership. 

You will need to take care of the following:

  • Submit a notification of move to the Population Information System maintained by the Digital and Population Data Services Agency. Your address will also be updated in Posti’s address information system with the same notification.
  • Make an insurance contract with your insurance company.
  • Make an electricity contract.
  • Make an agreement on waste management and water supply if you’re moving into a single-family house.

Home Insurance

If Home Insurance helps handle surprising situation in everyday life at home and at the cottage.

Read more about Home Insurance

Secure your finances and loan repayments

How will you manage your home loan if life throws you an unexpected challenge? Secure your loan repayments and your family’s finances with life insurance.

Read more about MyLife insurance

Is your new home in need of some repair?

Kitchen renovation or a new bathroom? Read more about the home improvement loan options we offer

Apply for home improvement loan