There is a range of co-operative and commercial banks that provide loans in Finland. Shop around extensively before you decide where to apply. Do this so you can get an affordable loan. They may not be available on sunnuntaina Nettivipit.fi.
The smartest way to look for investment in this Nordic nation by comparison-shopping online. Look for the most attractive interest rate with the most reasonable fees and best repayment terms. Once you found a reputable financial company that provides the right loan conditions, set up a meeting with them. Here, you can make a formal loan application.
Types of Loans in Finland
One of the types of loans in Finland is the home loan. As of the moment, they have low-interest rates. The cost to service a mortgage loan is small. Most of the mortgages they grant in Finland are various loans. It means that your monthly payment may fluctuate whenever interest rates rise or fall. Always be aware of the interest rates because they may not be as low as what they offer right now. Whenever they increase, you should have enough monthly income to handle a high loan payment. Consider getting a fixed mortgage loan that has an extended amortization period. Do this if you want more stability and predictability. You may lock in at a certain rate for two decades. The long duration of the fixed interest rate allows you to relax more because interest rates will not go up. However, if the interest rates drop, the payment will remain the same. That is one of their major downsides.
Last April 2017 the average interest rate for a 15-year fixed mortgage in the United States is at 3.14%. It is higher than the average interest rate in Finland. Homeowners in Finland get a break whenever they pay for their mortgage loans. Owning a home in Finland can be the most cost-effective way to live well.
However, lots of homeowners in Finland have a lot of debt. They may get into trouble whenever the interest rates increase. They may have problems in meeting their obligations under the mortgage loan. It may apply when they have variable-type home loans. This scenario may trigger a “housing crisis” situation. The Finnish government and banks should keep tabs on this. Aside from home loans, they also have the business and personal loans. Residents may also access lines of credit and credit cards.
Consumer credit may have interest rates that fluctuate. Last September 2016, consumer credit has an average interest rate of 4.40 percent compared to 4.46 percent for the same month in the previous year. Consumer credit has higher interest rates compared to home loans.