Here at OUN®, we’re used to looking at the housing market with a fairly critical eye. That’s our job, and honesty compels us to do so. But now: there’s something in the air that we haven’t seen in a long time. No fanfare, no bubbles. But signs.
Record Number of Loan Offers in Uusimaa
Satu Astala, CEO of OP Koti Uusimaa, says that the number of mortgage offers is now at a record high. This doesn’t mean that deals are automatically closing. A loan offer is just that—a loan offer—not a signed purchase agreement. But interest has clearly been sparked. So we’re one step closer to closing deals!
What has led to this? One major change came from the Financial Supervisory Authority. The loan-to-value limit was raised to 95 percent. In practice, buyers no longer need to save as large a down payment as before. The barrier to entry is lower. More people now have the opportunity to recalculate their finances.
Sellers are reluctant to lower their prices
Mika Laurikainen, CEO of Kiinteistömaailma, points out something that many buyers may not want to hear. Not all sellers are willing to accept lower prices. Some stick to their asking prices, no matter what the market is like. It’s important to understand this.
An increase in loan offers does not necessarily mean that prices have fallen to a level that is compellingly low from the buyer’s perspective. Supply and demand are (always) in flux, but balance is not the same thing as a low price.
What we’ve written previously on this topic
The new regulations that took effect in June, as well as the longer mortgage terms that have appeared on the market, have already been discussed on the OUN® blog. A longer loan term reduces your monthly payment but increases the total cost. It’s not automatically a good or bad solution. It depends entirely on your situation.
Now, raising the loan limit adds another variable to this equation. Buyers should calculate the total cost, not just the monthly payment.
Now is a good time to do your homework thoroughly
A more active market means that competition for good properties can heat up quickly. It’s easier to make an offer based on emotion when it feels like it’s now or never.
That’s exactly why it’s a good idea to know a few things in advance:
- What is the property’s true market value, not just the seller’s asking price?
- What does raising the loan cap actually mean for you in euros?
- Is this the kind of item where the seller is likely to be flexible, or will they stick to their guns?
A heating market is a double-edged sword for buyers. It offers more opportunities, but also puts more pressure on them to act quickly.
So, are we going to brag?
Take it with a grain of salt. The signs are there, and they’re real. A record number of loan offers is a concrete sign. But OUN® isn’t the one to tell you that now is the best time to buy. That’s not our job, and it doesn’t serve you.
Our job is to make sure you have all the information you need before you make a decision—whether the market is hot or cold.
If you’d like us to review a particular item or calculation objectively, please contact us. We neither receive nor pay commissions on any transactions; we are completely independent.
Is it time to buy my own apartment?
The purchase agreement for your home is one of the most important contracts you’ll ever sign. Before signing, it’s a good idea to know exactly what the property’s documents say—and what’s missing from them.
OUN® reviews the documents related to the sale of the property on your behalf and provides a plain-language analysis within 24 hours. We are 100% on your side—we don’t sell the apartment to anyone.
