The Finnish Financial Supervisory Authority has expressed strong opposition to a government proposal aiming to extend the maximum repayment period for mortgages to 35 years. Officials, including macroprudential expert Peik Granlund, warn that such an extension could significantly increase household indebtedness at a time when Finnish households are already more indebted than the European average. Granlund emphasized that this increase in debt levels may pose a risk to the stability of the financial markets.

The proposal, formulated during the government's budget negotiations last spring, is currently under consideration by the Finnish parliament, with intentions to enact the law by the beginning of April. As it stands, since July 2023, new housing loans have a repayment deadline of up to 30 years, reflecting existing concerns about rising debt levels among households. Financial authorities, including the European Central Bank, have also issued statements supporting the argument that longer repayment periods may exacerbate the debt crisis.