A man conducting business at Danske Bank in Helsinki. LEHTIKUVA
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Applications for housing loans in Finland have increased by 13 percent compared to the same period last year, according to Danske Bank.
The bank reports that interest in home buying has clearly grown during the first quarter of 2025. The rise in applications reflects wider expectations of a recovering housing market after a prolonged period of stagnation.
Danske Bank predicts a 2.5 percent increase in property prices this year, following a 3.3 percent drop in 2024. For 2026, the bank forecasts a further 3 percent rise in housing prices.
“First-time buyers are currently in a strong position. They can purchase their first home at more affordable prices compared to previous years. Lower prices are helping to offset the introduction of transfer tax payments for first-time buyers, which began last year,” said Sari Takala, Head of Lending for Personal Customers at Danske Bank.
The bank expects the number of property transactions to increase further as interest rates fall. Danske Bank projects that Euribor rates will decline to around two percent later this year.
“For many borrowers, monthly instalments are already decreasing when interest rates are adjusted. Lower rates may encourage more people in Finland to enter the housing market,” Takala said.
To support new buyers, Danske Bank has introduced a special offer for first-time homeowners. The package includes a reduced loan margin and waives the typical arrangement and processing fees, resulting in savings of around €1,200 on a €200,000 loan. Additional benefits are also available for members of the Akava trade union confederation.
Danske Bank has positioned the offer as a response to current market conditions and the needs of younger buyers.
HT
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Source: www.helsinkitimes.fi
