Banks have become an obstacle to the growth of the real estate market in Finland, according to the Central Federation of Finnish Real Estate Agencies (SKVL).
SKVL on Tuesday revealed that many of the real estate agencies surveyed for its regular market forecast are concerned about the difficulties faced by aspiring home owners in securing housing loans and accessing other banking services.
Mortgage negotiations, it said, tend drag on and even high-income applicants are finding it difficult to secure mortgages.
SKVL also acknowledged that the general outlook for the real estate market is nevertheless positive, with the demand for real estate high especially in Tampere and Greater Helsinki. Almost four-fifths (78%) of the real estate agents surveyed estimated that the demand will increase or at least remain at its current level between July and September.
Its market forecast is based on the third-quarter expectations of 1,350 real estate agencies across Finland.
The Finnish Financial Supervisory Authority (FIN-FSA) in March announced it has decided to lower the maximum limit for mortgages of other than first-time home buyers from 90 to 85 per cent of the fair value of collateral as of 1 July. Its decision is expected to result in an up-tick in real estate transactions in June, according to SKVL.
The growing debt burden of households has stirred up concerns among several financial institutions, including the Bank of Finland.
Aleksi Teivainen – HT
Photo: Anni Reenpää – Lehtikuva
Source: Uusi Suomi