Finland housing market shows signs of recovery as mortgage lending rises

The Finnish housing market is showing signs of revitalization, evidenced by an increase in mortgage lending across several regions. In Central Uusimaa, the number of mortgages issued during the spring and early summer rose by 13 percent compared to the first quarter of the year.

This growth is attributed to several factors, including a legislative change in June that allows for longer loan terms, which has freed up capital for consumption and other investments. Additionally, the Financial Supervisory Authority's decision to raise the loan-to-value cap to 95 percent for all homebuyers is further stimulating the market. Experts suggest that 2026 could serve as a turning point for the market as housing prices have decreased from their peaks and purchasing power is rising.

In Southwest Finland, Säästöpankki Kalanti-Pyhäranta reported a 5.5 percent growth in its residential mortgage portfolio during the first six months of the year. The bank noted an exceptional volume of mortgage inquiries at the beginning of the year, signaling that households are moving from cautious planning to active financial decision-making after a period of economic uncertainty.