Right-of-occupancy home

An intermediate form between owning and renting

A right-of-occupancy flat suits you if you want a permanent home, but don’t want to tie yourself to a sizeable loan. Right-of-occupancy is a good alternative in the greater Helsinki area in particular, where rents are high and owner-occupied homes are expensive. You can live in your right-of-occupancy home as long as you like, but you cannot buy it for yourself.

Questions about right-of-occupancy

What does living in a right-of-occupancy home cost?You pay 15% of the home's purchase price as an right-of-occupancy payment and a monthly maintenance charge. The amount of the maintenance charge varies from home to home, so it pays off to compare.
Can I get a loan for a right-of-occupancy home?You can get a loan for a right-of-occupancy home in the same way as for an owner-occupied home. If you want to buy a right-of-occupancy home, your own savings must cover at least 10% of the right-of-occupancy payment. Before the bank grants you a loan, it checks your repayment ability, your creditworthiness, possible security and your savings. The right-of-occupancy agreement is good as security up to 75%, but you will need additional security for the rest. Read more about Nordea’s OwnGuaranteeOpens new window 
Can I make a tax deduction on the interest?You can deduct the interest of the loan taken out for the right-of-occupancy payment in taxation in the same way as the interest on other housing loans.
Will I be eligible for a housing subsidy?Yes, you can apply for a housing subsidy to a right-of-occupancy home in the same way as to a rental home. Find out more from KelastaOpens new window
How do I apply for a right-of-occupancy home?You must first apply for a serial number from the housing agency of your home town or municipality. After you have the number, you can investigate the housing supply of different constructors and submit a right-of-occupancy application for the homes that interest you. With the same serial number you can apply for a home from all housing agencies offering right-of-occupancy homes. Google for information on parties that offer right-of-occupancy homes in the area you are interested in. If the home you are applying for is not vacant at the time, your application will be put into a queue.
Will I get my money back when I leave the home?Yes, you will get back the right-of-occupancy payment you have invested in the home, revised with the construction-cost index. When you want to give up your right-of-occupancy, make a written notification to the owner of the home. If you have made alteration work to be credited in the home, attach the receipts for the work and the written permit for the alteration work received from the housing master to your surrender notice.

Go through the steps of the buyer's guide