Starting from 2016, banks in Finland will be able to offer up to 90% of the funds needed for buying of housing, but later this maximum may be reduced to 80%, according to ee24.com citing opp-connect.com.
The IMF and the European Central Bank recently advised European countries to set a maximum size of mortgage loans. Finnish authorities were quick to draw up a bill that will be considered by the Parliament in April.
In case of approval, banks will be able to provide not more than 90% of the required amount, and the remaining 10% will be paid by the buyer. Exception will be made only for those who buy real estate in Finland for the first time: they will have a chance to receive up to 95% of the property value.
The bill states that in case of problems in the property market, the regulator may prohibit banks to provide more than 80% of the transaction amount.