Finland REAL ESTATE MORTGAGE LOANS BANKS
Hypothecary crediting in Finland

The question on possibility of purchase of the real estate in Finland with use of extra means of bank (mortgage) is one of most often set by our clients. In this review we will try to break this point in question into more concrete and in a general plan to depict each of them.

Whether credit reception in Finland is possible, basically?
This question would be better to paraphrase and set the following:

Whether the physical person who is not the resident or the citizen of Finland to make an application on reception of the credit for real estate purchase (at home, summer residences, a cottage, the ground area) or apartments (townhouse) in Finland can?

The answer idle time — it is final, can. Laws of Finland in any way do not interfere with it. It is necessary to understand only that, as well as in any other country, you should have the logical and convincing motive explaining the purpose of your inquiry about granting of the credit. Differently, by the time of when you decide to address for the credit, you should be defined with concrete object under which will request the credit.

What for this purpose it is necessary?
In the given plan in Finland there is nothing exotic or not clear. You, as the potential applicant, should correspond to following minimal requirements. You should have source of the constant income, and also additional proofs of your solvency - documents on the property on real estate, for example. Besides, very much the good credit history in this connection the documents confirming can be useful can render a positive effect that in the past you already took credits in banks and in due time them returned.

Who grants the loan?
Banks. In certain cases, crediting programs can be offered by the building companies. However the bank will be the indispensable participant of a chain always. It is possible to direct inquiry about credit granting to any bank and its branches. Has no value, there will be it the Finnish bank or representation of bank of other state in Finland.
What interest rates and terms of repayment of the credit?
Conditions of granting of credits for non-residents of Finland can differ from conditions on which citizens of this country can count.

In view of universal financial crisis, representatives of bank system of Finland consider possibility of some toughening of conditions of granting of credits to foreign citizens. Therefore, it is impossible to exclude probability of that interest rates can change towards increase, and terms of repayment of the credit, on the contrary, will be reduced.

What guarantees of reception of the credit?
You can try to present yourselves on a place of the bank employee to which should make the decision on granting of money of bank to the person who is not the citizen of Finland? Especially, if the applicant does not have any actives in territory of Finland, except object of the real estate which will be in pledge at bank before credit repayment (and what interest at bank in realisation of object during unknown quantity of time)? And, separately remembering what, if something happens, collecting of promissory notes should be initiated in territory of Russia, addressing for the help in various Russian state structures?

On the Internet it is possible to meet statements that certain companies (or private persons) guarantee reception of the credit by you in the Finnish bank. Here it is necessary to understand, about what actually there is a speech. If means that they are ready to act as your guarantor before bank it is represented rather improbable. How you think, whether many of your environment are ready to address to bank the guarantor for the person who is the citizen of other state? Whether take they on themselves responsibility, if something happens, to pay from the purse all promissory notes of the borrower-foreigner? If it is a question that they are ready to work with you until the positive result it will be the definition closest to the truth will be reached.

Acceptance by bank of the positive or negative decision under the demand in credit granting depends on a large quantity of various factors. To us cases when refusal in credit granting was received by citizens of Finland though the size of means requested by them was rather moderated are known. It is necessary to consider that not only different banks, but even branches of the same bank can have own criteria of an estimation.

Once again we will repeat - the chance of reception of the credit of real estate purchase in Finland at citizens of Russia is. But on its weightiness correctly picked up both made papers and competently planned process of a filing of application can affect the credit, than not clearly on what the based guarantees more likely. And, certainly, the more the share of means which the borrower plans to bring from its part on real estate purchase in Finland, the is more probability of reception of the positive decision on credit delivery.