Changing homes may become relevant when you need to find a home that is bigger or otherwise more suitable for you. A higher standard of living typically also comes with a higher price. That’s why changing homes often means applying for a new home loan.
When you are changing homes, apply for the additional loan you need for your new home the same way as you would apply for any other home loan. We will invite you to negotiate and agree on the loan amount, interest, the repayment method, collateral and other necessary things with us.
When you need a new loan, you typically pay off the loan you had taken for your old home and replace it with the new loan. However, it may be sensible to keep the old loan if you have an interest rate hedge that you don’t want to lose.
You won’t necessarily need a bigger loan if you have enough savings. We recommend all home buyers to save while they repay their home loan, as the savings may come in handy when they want to buy a new home, for example.
Sometimes you may find the perfect home before you have sold your old home. If this happens, you should stop and consider whether you are willing to take the risk of not being able to sell your old home as quickly as you want.
If you still want to make an offer, we recommend that you add conditions to it. This way the offer will be binding on you only if these conditions are met. In this case, the condition you want to include is that you need to sell your old home first.
At the moment, the general housing market is slow because many buyers include this condition in their offers.
The whole chain of home deals will therefore need to wait for the first deal to go through.
It isn’t always necessary to sell your old home if you have enough flexibility in your finances to cover the expenses of two homes.
Instead, you can keep your old home and rent it out. You can use the rental income to cover costs related to the home. And if the home you are renting is located in an area where home values are rising, you can grow your wealth over time.
If you buy a new home before you have sold your old home, you may get stuck with two homes. You will then need to have enough money to cover the loan repayments for both your old and new home, their maintenance charges and electricity bills and other expenses.
The best way to avoid this trap is to sell your old home first and only then start looking for a new home. This way the money you get from your old home is safely in your bank account, waiting for you to find your new home. For this reason, we recommend that you sell your old home before buying a new one.
If you need flexibility in your loan repayments, you can use FlexiPayment, which is a feature included in our home loans free of charge. You can increase or decrease your monthly payment when you need to. You can do this easily in Nordea Mobile or Netbank. You don’t need to contact us to use FlexiPayment.
Another option for making your loan repayments smaller is to apply for a payment holiday. You can get a payment holiday for 1 to 24 months. To apply for a payment holiday, fill in a change application in Nordea Mobile or Netbank.
If you’re unsure about anything, we recommend that you contact us to discuss your circumstances. If you have free collateral or your financial standing is otherwise stable, a short-term loan may also be an option.
Home owners may swap homes between each other. If homes change owners through a swap, there are two buyers and two sellers, which means that both homes are sold to a buyer as normal. The buyer in each transaction is responsible for paying the asset transfer tax.
One home is often more expensive than the other, and the buyer of this home may need a loan to pay the difference. If you need this type of financing, apply for a regular home loan.
Finns change homes every six or seven years. The first time you start thinking about changing homes is when your studio apartment starts to feel cramped.
Your needs often change when you want to move in with someone or a new family member needs more space. In these phases of life, you often move from a smaller home to a bigger one located further away from the city centre.
On the other hand, when your children move out, you may want to move into a home that is smaller and easier to maintain.
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