Yle is investigating the increasing difficulties residents in large cities face in obtaining home loans, particularly for properties needing renovations.
Yle Uutiset reports that securing home loans for properties requiring renovations has become significantly more challenging in recent years in Finland's major cities. Leading real estate agencies, including Kiinteistömaailma, Huoneistokeskus, Bo LKV, and Habita, indicate that banks have shifted their focus from assessing the borrower’s situation to scrutinizing the condition of the property being purchased. This change in lending practices has made it more difficult for potential buyers to secure financing, particularly in a market where property conditions are highly variable.
Tommi Luosmala, a real estate agent in Tampere, noted that banks now require more documentation to assess the viability of a property, including the shareholders' list of the housing company. He emphasized that the identity of other shareholders impacted the approval of loans, with investment companies being viewed differently than individual homeowners. This heightened scrutiny from banks suggests a cautious approach to lending amid economic uncertainties and rising renovation costs, potentially restricting access for first-time buyers or those needing affordable housing solutions.
The article invites residents of large cities to share their experiences regarding home loans, hinting at a wider issue affecting many aspiring homeowners. Yle aims to compile these stories to illustrate the challenges faced in the current housing market, raising awareness of the systemic issues impacting housing accessibility and affordability in urban areas.
